• Gold Price Rose $2.00 Closing at $1,208.90

    20-May-15 Price Change % Change
    Gold Price, $/oz 1,208.90 2.00 0.17%
    Silver Price, $/oz 17.09 0.04 0.25%
    Gold/Silver Ratio 70.729 -0.057 -0.08%
    Silver/Gold Ratio 0.0141 0.0000 0.08%
    Platinum Price 1,155.80 6.00 0.52%
    Palladium Price 776.75 1.70 0.22%
    S&P 500 2,125.85 -1.98 -0.09%
    Dow 18,285.40 -26.99 -0.15%
    Dow in GOLD $s 312.67 -0.98 -0.31%
    Dow in GOLD oz 15.13 -0.05 -0.31%
    Dow in SILVER oz 1,069.82 -4.22 -0.39%
    US Dollar Index 95.57 0.20 0.21%

    3 Day Gold Price Chart
    30 Day Gold Price Chart
    5 Year Gold Price Chart
    3 Day Silver Price Chart
    30 Day Silver Price Chart
    5 Year Silver Price Chart

    GOLD PRICE rose $2.00 (0.2.%) on Comex and silver lifted 4.2 cents (0.3%) to $17.092.

    Today’s action doesn’t tell us much. SILVER & GOLD PRICES held on lukewarmly to the support levels where they skidded to a halt yesterday. Silver did actually close the day above its 200 DMA, barely but the gold price did not.

    More good news: both remain above their faster moving averages, the 20 & 50. That’s positive, and this reaction might have a positive result by not dropping much lower. And the GOLD/SILVER RATIO remains below its 200 DMA, which is general rally mode.

    As always, however the burden of proof lies on any downtrending market to show it has turned up by confirming with successively higher highs and higher lows.

    So for right now, we watch patiently, and keep our noses clean by staying out of international conspiracies to manipulate interest rates, silver and gold prices, stock prices, bond prices, and cat food prices. Y’all better be good now, ’cause y’all don’t have no corporation to hide behind & they’ll put y’all in jail for sure.

    Just for laughs, let’s suppose that Franklin, Barry, & Larry formed a conspiracy in the physical gold and silver market to raise the premiums on gold coins. Let’s suppose, contrary to known facts, that we do enough business to pull it off. Further, imagine the yankee Justice Department gets wind what we are doing, indicts us, and convicts us. Do you suppose we would get off with a fine? Mercy, no. After publicly scalping us, they would arrange a longterm lease on a condo in Alcatraz.

    Yet today, in all reality, five of the worlds largest banks — JPMorgan Chase, Citigroup, Barclays, Royal Bank of Scotland, and UBS pled guilty to criminal charges of manipulating currency exchange rates and were fined $5.7 billion.

    Oddly, these legal fictions — corporations — who the law pretends are persons, are fined for this criminal behavior. Yet no natural persons, you see, no traders, managers, uebermanagers, or high-high managers knew anything about it, so none of them were charged criminally, just the corporation. And since a corporation has no soul to damn and no body to kick, well, the yankee government just fines them.

    Oh, and it doesn’t hurt that these are megabanks. O ye fellow-mushrooms, there are two kinds of law: the law that applies to them, and the law that applies to us, and their law never puts any BODY into jail.

    On to the markets, which we all know are never rigged or manipulated and are run by trustworthy people overseen by diligent, capable, & competent government regulators.

    Stocks sputtered again today, unable to hold on to or better yesterday’s gains. Dow lost 26.99 (0.15%) to 18,285.45 & the S&P500 lost 0.09% or 1.98 to close at 2,125.85.

    Dow in Gold

    Yesterday’s gold price fall combined with barely higher stocks sent the Dow in Gold & Dow in silver up. Dow in gold closed barely above its intertwined 20 & 50 DMAs. Today it hooked down 0.25% to end at G$312.76 gold dollars (15.13 oz). Chart on the right.

    Dow in Silver

    Because silver has outperformed the gold price for the past couple of months, the Dow in silver looks quite different. By 18 May the rally in silver had taken it to the 200 DMA — yes. It has risen from S$1,335.92 (1,033.25 oz) to S$1,382.27 (1,069.1 oz). Only a matter of time before it falls over the cliff. Chart on the left.

    FOMC released minutes today which the masses interpreted as meaning the Fed won’t raise interest rates before September I offer this statement not for the truth of the matter, but as evidence only of what the masses conjecture, having gazed into the entrails of the FOMC minutes. I don’t think they can raise interest rates at all, or not much, lest they risk a catastrophe.

    Counterintuitively, since higher rates lead to higher currency exchange rates, the US dollar Index ROSE 20 basis points (0.21%) to 95.57. This is a countertrend rally that should stall about 96.50 resistance or at the 50 DMA, now 97.15.

    Euro sank 0.48% to $1.1095. Yen fell 0.49% to 82.44. No action either place.

    Also counterintuitively US interest rates rose & fell. The 10 year T-note fell 0.49% to 2.251% and the 30 year bond rose 0.49% to 3.053%. Can’t make sense out of that, but both remain in rally mode above their 200 DMAs.

    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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