• Price of Gold Gave Back $5.50 Today Closing at $1,089.40

    3-Aug-15 Price Change % Change
    Gold Price, $/oz 1,089.40 -5.50 -0.50%
    Silver Price, $/oz 14.52 -0.23 -1.56%
    Gold/Silver Ratio 75.048 0.798 1.07%
    Silver/Gold Ratio 0.0133 -0.0001 -1.06%
    Platinum Price 966.60 -17.80 -1.81%
    Palladium Price 602.70 -7.65 -1.25%
    S&P 500 2,098.40 -5.80 -0.28%
    Dow 17,598.20 -91.66 -0.52%
    Dow in GOLD $s 333.93 -0.05 -0.02%
    Dow in GOLD oz 16.15 -0.00 -0.02%
    Dow in SILVER oz 1,212.33 12.69 1.06%
    US Dollar Index 97.57 0.14 0.14%

    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

    SILVER and GOLD PRICES disappointed me today Comex silver lost 23 cents to $14.516 while the price of gold gave back $5.50 today closing at $1,089.40. Silver’s low came at $14.44 and gold’s at $1,085.10.

    This action is by no means fatal, simply disappointing. The GOLD PRICE low came 23 July at 1,072.30 and silver’s 24 July at $14.33. Any move that doesn’t seriously penetrate those levels would constitute a double bottom.

    Silver’s MACD indicator has turned up, but its RSI has turned down. Tiny changes. Gold’s RSI is growing less oversold and the RSI is curling up. No bad news here, but no good news.

    GOLD/SILVER RATIO rose 1% to 75.048. Closed almost but not quite above the 20 DMA tripwire.

    Dow in gold fell barely to 16.15 oz, Dow in silver rose 1.16 to 1,212.41 oz.

    Stocks themselves tak’n a faintin’ spell. Dow lost 91.66 (0.52%) to 17,598.20. Any close below 17,400 could panic the herd. S&P500 lost 5.8 (0.28%) to 2,098.04 — whoops, below the 50 DMA and almost below the 20.

    US dollar index, scrofulous troubler of the world, rose 14 basis points to 97.57. Euro fell 0.3% to $1.0950, Yen fell 0.08% to 80.63. In other words, nothing happened much in the scabby world of fiat currencies.

    Just a leetle whisper in y’all’s ear. According to Fred, the St. Louis Fed’s database, as of 29 July 2015 the federal reserve system has issued $1,370.77 billion in Federal Reserve notes, i.e., currency. Now according to a conversation I had years ago with a Treasury official, about 75% of that circulates OVERSEAS, so only 25% remains in the US. Further, 318,892,103 folks live in the US, give or take a million. A quick division tells me that for every US man, woman, and child only $1,074.64 circulates in the US . Most all daily business payments are made with bank credit, i.e., bank account electrons or credit cards. Most people have little cash, and customarily beg a pittance of cash from their bank at ATMs.

    When the Greek Crisis blew up last month and they closed the banks, they limited ATM withdrawals to 60 euros a day or 1600 a month. Lots of folks had been withdrawing cash because they saw what was coming, but when the Greek government locked down the banks, they locked down safe deposit boxes, too. How would your family do without any cash?

    Here’s an idea for you that expires with August: get two or three months living expenses out of the bank in cash. Not all $100s, small bills. Put that cash someplace safe where you have 24 hour access. “Expires with August” means “do it very, very soon.” You’re not making any interest leaving it in the bank anyway.

    But what do I know? I’m just a nat’ral born durned fool from Tennessee. You say “bank” around here, folks think you’re talking about a creek.

    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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