• Gold Price Plummeted $25.10 or 2.2 Percent Closing at $1,106.70

    20-Jul-15 Price Change % Change
    Gold Price, $/oz 1,106.70 -25.10 -2.32%
    Silver Price, $/oz 14.75 -0.08 -0.51%
    Gold/Silver Ratio 75.056 -1.327 -1.80%
    Silver/Gold Ratio 0.0133 -0.0002 -1.77%
    Platinum Price 990.20 -10.80 -1.08%
    Palladium Price 611.05 -6.95 -1.12%
    S&P 500 2,128.28 1.64 0.08%
    Dow 18,100.41 13.96 0.08%
    Dow in GOLD $s 338.09 -7.58 -2.19%
    Dow in GOLD oz 16.36 -0.37 -2.19%
    Dow in SILVER oz 1,227.56 -5.32 -0.43%
    US Dollar Index 98.16 0.17 0.17%

    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

    The GOLD PRICE plummeted $25.10 (2.2%) to $1,106.70, with a low at $1,080. SILVER lost only 7.5 cents (0.5%) to $14.745. GOLD/SILVER RATIO dropped 1.7% to 75.056.

    Y’all remember those puzzles they used to have when we were children (back when dirt was young) where you had to locate all ten things that were out of place? For instance, the pig in the picture picking his teeth with a radio, or a hummingbird with a saddle on his back. Today we’re going to look for what doesn’t fit.

    Ned Schmidt wrote this morning, “The last time the Street was this bearish on gold was in 2007.” I didn’t check his numbers, but that sounds about right. Reuters headline today screamed “Morgan Stanley touches 7 year high, Gold touches 5 year low.” Perfect headline to show max confidence in financial system and minimum confidence in its opposite, gold, and a metals’ low. Other than ridgerunners like me from Tennessee, why, you couldn’t find a radioactive gold bug if you had a Geiger counter. Lo, the Fear of Deflation lieth heavy on them all.

    Is there any sign at all silver and GOLD PRICES might turn around? Well, no dramatic reversal yet, but other signs that make me scratch my head.

    ** Gold price made a new low for the post 2011 bear market, but the volume. was lower than the 7 November 2014 low at $1,130.40 (250,336 v 285,380).

    ** Gold prices punched through its 3 standard deviation lower Bollinger Band.

    ** Gold’s RSI is more oversold today than it was in November 2014.

    ** MACD, Rate of Change, and Full stochastics are in about the same condition there were last November.

    Silver’s interesting, too:

    ** Silver price made a new low for this move today at $14.49, but on lower volume than the 7 July low at $14.62 (58,621 vs. 87,204). That might — might — signal a double bottom.

    ** at the 7 July low silver punched into its 3-sigma lower Bollinger Band. Today it didn’t, although the price was lower.

    ** Several silver cycles converge here with a target low at $14.65, according to the cycles expert I read. (It give me a headache to do cycles.)

    Gold/Silver Ratio is more interesting still.

    Gold/Silver Ratio

    ** The Ratio fell like a plumb bob off a four story wall. That ain’t right. That just ain’t right. It’s one of the biggest plunges of the last 10 months, but when metals are weak silver is almost always weaker than gold. What is this? Gold makes a new bottom, drops 2.2% to a five year low, but silver only drops 1/2%? Ratio drops 1.7%? Ratio closes just barely UNDER the uptrend line from the April 2011 low? Below its 20 DMA? Mercy, the Ratio ought to be RISING but it falls. Y’all look for yourself, chart on the right:

    Now add to all that improving Commitments of Traders numbers for silver and gold, and these things don’t all fit into the picture of markets about to plunge further.

    But them is just the observations of a nat’ral born durned fool from Tennessee, and I ain’t no millionaire. Shucks, I ain’t even hardly a thousandaire.

    Other markets just seem pale and watery after silver and gold. Stocks tried their best to get up out of bed today, made the effort, then decided just to lie down again. Dow reached as high at 10,137 but ended up only 13.96 (0.08%) at 18,100.41. S&P500 added 1.64 (0.08% to 2,128.28).

    US dollar index is running out of fuel fast, tracing out a rising wedge. Rose 17 basis points (0.18%) to 98.16. Whatever it does the rest of its life, looks like it’s fixin’ to take a leetle rest right here. Euro lost another 0.21% to $1.0808, on it’s way to par with the dollar — or less. Yen lost 0.18% to 80.46.

    The other inflation markets, oil and copper, fell modestly today, down 1.06% and 0.88%, but not to hold a candle to gold or silver.

    Okay, Moneychanger, what are you saying? I’m saying a lot of things in the silver and gold price chart do not look like sharply lower prices are coming immediately. One thing I would like to see is a very sharp reversal day, preferably one that makes a new low by a teentch, then shoots up way higher than the day before’s close. Judging by the number of calls we got today, I reckon there are a lot of buyers out there satisfied to buy at these prices.

    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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