• Next Week Ought to be Hot for the Gold Price

    12-Jun-15 18-Jun-15 Change % Change
    Gold Price, $/oz. 1,178.80 1,201.50 22.70 1.9
    Silver Price, $/oz. 15.818 16.148 0.33 2.1
    Gold/Silver Ratio 74.523 74.405 -0.117 -0.2
    Silver/gold ratio 0.0134 0.0134 0.0000 0.2
    Dow in Gold $ (DIG$) 313.88 311.68 -2.20 -0.7
    Dow in gold ounces 15.18 15.08 -0.11 -0.7
    Dow in Silver ounces 1,131.55 1,121.86 -9.69 -0.9
    Dow Industrials 17,898.84 18,115.84 217.00 1.2
    S&P500 2,094.11 2,124.24 30.13 1.4
    US dollar index 94.99 94.24 -0.75 -0.8
    Platinum Price 1,096.30 1,082.50 -13.80 -1.3
    Palladium Price 738.15 718.60 -19.55 -2.6

    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

    When I awoke early this morning I checked SILVER and GOLD PRICES and gold stood at $1,208 and silver at $16.48. Quite right. Say, conservatively, I was gratified. However, they came under attack about 1:15 this afternoon. The price of gold ended Comex at $1,201.50, $25.10 (2.1%) higher. Silver rose 20.8 cents (1.3%) to $16.148.

    Gold Price

    The daily StockCharts chart I follow shows a lower high than $1,208, for some reason. That 200 day moving average stands at $1,207.93, so it’s not much wonder the GOLD PRICE didn’t blow past that on the first try. However, it ended above its 50 and 20 day moving averages, and within easy striking distance of the 200 DMA. Add to this an uptrend in force since the 5 June low. Assuming the price of gold finishes tomorrow above $1,200, next week ought to be hot for the GOLD PRICE. Behold, the chart on the right!

    The SILVER PRICE, it’s true, punched into its 50 and 20 DMA’s today, but in spite of its heroic rise to $16.48, finished the day only 1.3% better than it had started. I feel like somebody has shortchanged me, or the plastic gun I saved three weeks for broke the first time I played with it. Still, momentum indicators have turned up, and silver’s 200 DMA stands only at $16.74. A 60 cent move is nothing for silver when it has its back up. Next week it should exploit today’s gain.

    I’m telling y’all, this is bottoming you are watching. This is the time you ought to be accumulating silver and gold. Low will come between now and mid-July. Besides, would you prefer to leave your money in the bank making 0.25%?

    I will be away at Lake Pickwick with my sons tomorrow, so I won’t be here to write a commentary. Accordingly, I’m closing out the week with Thursday. Trends are clear enough: stocks have perhaps begun their last little rally, US dollar index confirmed its intent to tunnel to the earth’s core, silver and gold prices are rallying.

    At one point today the US dollar index, leprous king among scrofulous fiat currencies, had dropped to 93.3, 119 basis points below yesterday’s close. However, it clawed its scrawny, repulsive self back up to 94.24, down only 25 basis points (0.26%) for the week. My o my, last week it closed 94.99, so for the week it’s down a clean and perfect 75 bps. Them fingerprints look like the heavy hand of the Nice Government Men, Mama.

    Euro finally is reaching for something. Closed $1.1368, up 0.29%, and nearer to the last high at $1.1469. Clearly the Fear of Greece hath left it. Maybe, but that goose ain’t cooked through just yet.

    ‘Bout the time you count a market out, it snaps back. Yen gapped up today and rose 0.38% to 81.34. Why, it’s above its 20 day moving average.

    Dow in Gold
    Dow in Silver

    Dow Industrials jumped 180.1 (1.00%) to an 18,115.84 close. S&P500 rose 20.8 (0.99%) to 2,124.24. Nasdaq Composite and Russell 2000 made new all time highs. Stocks may be making one last leg up, may even make a new all time high, but Lo, the end is certain, the time has come.

    Dow in Gold fell away from the upper gator jaw again and ended the week below its 20 and 50 DMAs. Ended at G$311.73 gold dollars (15.08 troy ounces). Chart’s on the right:

    Dow in Silver remains above its moving averages, but has never reached the upper gator jaw on this latest rise. Ended at S$1,452.10 (1,123.11 troy ounces).

    Oh, when it cometh, that fall shall be great!

    Y’all enjoy your weekend.

    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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