• We've Seen the Low in Silver and Gold Prices for the 2011-2015 Bear Phase

    12-Aug-15 Price Change % Change
    Gold Price, $/oz 1,123.20 15.60 1.41%
    Silver Price, $/oz 15.47 0.19 1.26%
    Gold/Silver Ratio 72.591 0.369 0.51%
    Silver/Gold Ratio 0.0138 -0.0001 -0.51%
    Platinum Price 988.90 -0.30 -0.03%
    Palladium Price 605.70 16.90 2.87%
    S&P 500 2,086.05 1.98 0.10%
    Dow 17,402.51 -0.33 -0.00%
    Dow in GOLD $s 320.28 -5.52 -1.69%
    Dow in GOLD oz 15.49 -0.27 -1.69%
    Dow in SILVER oz 1,124.70 -13.56 -1.19%
    US Dollar Index 96.29 -1.04 -1.07%

    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

    Continuing to confirm its winning streak, the GOLD PRICE jumped $15.60 to $1,123.20 while SILVER rose18.4 cents to $15.473, right under the critical $15.50 where it broke down. GOLD/SILVER RATIO closed 72.591, and has been beneath its 200 day moving average for three days.

    I’m still a nat’ral born durn fool from Tennessee, so I can’t resist prognosterkating: you all have SEEN the low in silver and GOLD PRICES for the 2011-2015 bear phase. It won’t get no lower than it has been, so if you were planning to buy, you’d better get at it.

    Thinking of the Chinese devaluing their currency two days running, I am reminded of the old moral riddle, “Is it possible to cheat a banker?” It’s almost a central banking gentleman’s rule that you don’t pull two surprise devaluations in a row, but the Chinese did it, cleaning out speculators and spooking central banks around the globe. Total devaluation was 3.5% in two days, and that second one was a killer. Probably will devalue another 10% as the yuan was an estimated 14% overvalued.

    Wait, now, y’all do know that devaluing your currency will not make your economy improve as the Keynesians maintain, right? Time it settles out it won’t help a fig, but it will trigger a round of currency war devaluations.

    The Chinese pulled the rug out from under the dollar, as speculation is that the Fed cannot now raise rates and make the dollar even more attractive after the Chinese have devalued. Dollar plunge was the big but unsung news, down a colossal 104 basis points (1.07%) to 96.29, and below another support level. 93.30, look out, cause the dollar is coming to visit!

    Chinese devaluation also roiled stock markets around the world, so much so that in the US the Nice Government Men had to get in there and buy those S&P500 futures and raise it back up. Hanging over the abyss like Dante over the inferno, stocks fell, fell, fell, the Dow down over 275 points, when – Wondrous to tell! — some deep-pocketed somebody started buying and got the train back up on the tracks. Might have been Bigfoot buying, I dunno. Dow ended down only a third of a point, 0.33 and the S&P500 fell only 1.98 to 2,086.05, after a like performance.

    And folks say only the Chinese Communist government buys stocks outright! Why, they can’t hold candle to our homegrown Washington communists!

    Dow in Gold

    I’m plumb in peril of losing my title as a nat’ral born durn fool here. Jes’ like I ‘spected, the Dow in Gold has plunged, plummeted, and sunk. That durn high in July WAS a throwover high, too! Dow in gold sank clean through the top gator jaw and through the 50 DMA (15.57) to 15.47 oz. Broke as the US Government! 200 DMA lieth only 0.47 ounce from here at 15.00 oz.

    Dow in Silver

    Dow in silver looks even better. Closed below the 20 DMA (several days ago), then the uptrend line, now the 50 DMA (1,158.56) and hit 1,122.38 oz. The 200 DMA is only 22.38 short ounces from here at 1100.30.

    Odd, you never know what the trigger for a financial crisis will be — there are always so many candidates. But here the Chinese set one off without much trouble, and now the West’s treasury departments and central banks are trying to figure out how to contain it.

    Most interesting is that the dollar is plunging in tandem with stocks and gold is winning the safe haven bid. Can’t crow too much because you don’t know what will happen next, but the market knows. That Dollar Index topped four days ago, and I almost want to say it knew something bad was coming. — Course, I could be wrong.

    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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