• Silver and Gold Prices Will Run Out of Gas Here, Tomorrow, or They Will Bust Through and Keep Rolling


    Gold Price Close Today : $ 1,225.40
    Change : 7.40 or 0.61%

    Silver Price Close Today : $ 17.449
    Change : 0.242 cents or 1.41%

    Platinum Price Close Today : 1161.30
    Change : 11.50 or 1.00%

    Palladium Price Close Today : 779.50
    Change : -9.90 or -1.25%

    Gold Silver Ratio Today : 70.228
    Change : -0.558 or -0.79%

    Dow Industrial : 18,252.24
    Change : 191.75 or 1.06%

    US Dollar Index : 93.430
    Change : -0.220 or -0.23%

    I made the mistake this morning of showing my swollen toe to my wife Susan. I casually remarked I probably ought to see a podiatrist some day and forgot about it. That was as stupid as telling your daddy you have a loose tooth.

    About 4:00 Susan whisked me into town like I had sliced two arteries “because the podiatrist is going to be closed tomorrow and you don’t want to go over the weekend with that.” Next thing I knew the podiatrist was shooting up my toe with deadener and whittlin’ away like I was an oak stump, the whittlin’ was free and she had a hankerin’. “This won’t hurt,” she said, Right you are, I thought, it ain’t your toe.

    So y’all are going to get the short and basic commentary tonight.

    The gold price rose $7.40 (0.61%) to close Comex at $1,225.40. The silver price  added 24.2 cents (1.41%) to 1744.9c. Both metals have now reached stiff resistance, $1,225 and 1740c. What are the chances they can keep on rising?

    On the negative side, both silver and gold today touched their top Bollinger Band (3 standard deviations), which usually occasions a reversal — BUT not if they widen out the bands. And the bands for gold are at their narrowest since last June. For silver the width is narrow, but not as narrow as it has been in the last two years.

    On the plus side, both silver and gold prices today closed above their 200 day moving averages ($1,220.90 and 1713c). Minus side of that is, it might mark the limit of their upmove. The silver price  last traded above its 200 DMA in August 2014, the gold price in February of this year.

    More plus: this stepping out three day rise that has taken gold up $42.60 and silver up 115.1 cents is what a rally ought to look like, with sharply rising volume.

    Plus plus: Gold/Silver ratio dropped again today, to 70.227, and is well below it 71.47 200 DMA. End of day ratio close was at 69.89! Also the ratio has fallen BENEATH the uptrend line from the April 2011 low. Y’all look for yourselves:

    Swap gold for silver NOW if you have any left.

    Finally, that Gold/US Dollar Index spread has broken out upwards like it’s stretching for the moon. Go look:

    Bottom line is write here: either silver and gold prices will run out of gas here, tomorrow, or they will bust through and keep rolling. From the way they’ve boiled the last three days, chance is better than even they aim to rise further. If they move higher briskly tomorrow, y’all ought to buy some.

    But what do I know? I’m jes’ a nat’ral born durned fool trying to type with his foot propped up on a waste basket and a podiatrist whose toe ain’t hurting. I am a mess.

    I bet y’all think I’m a-hangin’ my head in shame and red-faced confusion cause stocks jumpt today. I ain’t even thought about it, because I don’t care a bit what stocks do in dollar terms, only in silver and gold.

    Now the S&P made a marginal new high today, but the headlines are touting it like it blew the top off the scoreboard. Lo, S&P500 rose 22.62 (1.08%) to close at 2,121.10 against its 24 April high at 2,117.69, a big 0.16% better! Durned if that don’t shut my nat’ral born Tennessee fool mouth.
    Dow rose 191.75 (1.06%) to 18,252.24. By the way, I am just small minded enough to point out the Dow didn’t confirm the S&P500, since its last high was 2 March at 18,288.63.

    And I am cranky and small minded enough to observe that this new S&P500 high was only a closing high, not the intraday high. I can carp with the best of ’em.

    But y’all looky here at that Dow in Gold. Based on the end of day gold price, lower than the Comex close, it closed up 0.2% at G$308.01 (14.90 oz). That is way below the 20 and 50 DMAs (15.09 oz and 15.11 oz).

    The Dow in silver is a sight to behold! It fell 0.93% today to S$1,351.21 silver dollars (1,045.08), a bare S$21.64 (16.74 oz) from the 200 DMA at S$1,329.57 (1,028.34 oz). Yes, I will crow when the DiS cuts thru that line.

    US dollar index firmed up its intentions today by falling another 22 basis points (0.23%) to 93.43. I am the leeeast bit bothered by what might be a falling wedge on the US dollar index chart, but now that it has passed 94 support, it ought to keep falling a long way.

    Euro rose 0.55% to $1.1414 — made it today, as I suspected. I reckon it will keep rising for a while, but it isn’t scratchin’ off and laying any tracks behind it. Yen actually fell 0.04% to 83.89, being carefully trimmed by the NGM, I suspect.

    Aurum et argentum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger

    © 2015, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold’s primary trend is up, targeting at least $3,130.00; silver’s primary is up targeting 16:1 gold/silver ratio or $195.66; stocks’ primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

    WARNING AND DISCLAIMER. Be advised and warned:

    Do NOT use these commentaries to trade futures contracts. I don’t intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

    NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

    NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

    NOR do I recommend buying gold and silver on margin or with debt.

    What DO I recommend? Physical gold and silver coins and bars in your own hands.

    One final warning: NEVER insert a 747 Jumbo Jet up your nose.

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