• Silver and Gold Prices are Giving you One Last Chance to Buy

    17-Aug-15 Price Change % Change
    Gold Price, $/oz 1,118.60 5.70 0.51
    Silver Price, $/oz 15.30 0.08 0.56
    Gold/Silver Ratio 73.14 -0.03 -0.05
    Silver/Gold Ratio 0.0137 0.0000 0.05
    Platinum Price 995.50 6.80 0.7
    Palladium Price 613.30 -3.70 -0.6
    S&P 500 2,084.07 -9.70 -0.5
    Dow 17,565.18 67.78 0.4
    Dow in GOLD $s 327.83 0.29 0.1
    Dow in GOLD oz 15.86 0.01 0.1
    Dow in SILVER oz 1,149.48 5.03 0.4
    US Dollar Index 97.23 0.03 0.0

    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 climbed $5.7 to $1,118.60. SILVER today closed Comex 8.5 cents higher at 15.295.

    Gold Price
    Silver Price

    The first leg of the metal’s rally was completed with those highs on 12 August. A 50% correction would push te GOLD PRICE back to $1,103, roughly also the level of the 50 DMA (1,098). A like silver correction would pull silver down to $14.96. Might not see corrections that big because of the upward force of the rally, but (1) it’s possible and (2) should bottom within the next week, then begin rising again. All indicators call for higher prices after a little time to sweat and cool off. Silver chart on the left, and gold chart on the right.

    Down at 73.135 today, the GOLD/SILVER RATIO is confirming the silver rally by hiding below its 200 DMA. Remember, the gold/silver ratio should fall during rallies. Speaking in bureaucratese, it is not insignificant (that is, it signifies something) that the ratio has fallen through its uptrend line from the April 2011 low. Fact is, it signifies that gold and silver have completed their long correction.

    Gold/Silver Ratio

    Once they’ve finished this little correction, Silver will again attack $15.60 and the price of gold $1,140. Breaching those lines, support turned resistance, will spur the rally harder.

    Silver and gold prices are giving you one last chance to buy ’em before they take off.

    Mercy! I have just spent five days around free, intelligent, and deliberate folks. That’s just about the most energizing thing in the world. When y’all get down and start thinking you’re the only one left who has a lick of sense and who thinks like you do (like an adult), just remember that there are millions of free, intelligent, and deliberate folks out there. It’s just hard to find ’em with all the media, government, and other doofuses standing in the way. Don’t y’all lose hope. They’re there, and they’re building.

    Y’all, there some things Nature just don’t do. You take them stocks now. Last Wednesday they opened up like an anvil shoved out of a 747 Jumbo Jet, fell nearly 300 points, but closed up 276.70 points from there. Then today the opened and fell 135 points like the guest of honor at a hanging, then somehow came back — within about an hour — to close at 203.46 later.

    Mythology aside, markets don’t do that. When they break like that, they keep on breaking. I am saying that if you were looking for the Nice Government Men’s fingerprints, you wouldn’t have to wear yourself out dustin’ to find ’em. Stinks worse than old cat food.

    Sad story is, by holding the market up and preventing the wash-out, the yankee government is only going to make the eventual crash and panic much worse, and wound the economy deeper, than if they’d just took their fat fingers off in the first place.

    Dow Industrials “rose” today 67.78 (0.39%) to 17,545.18. S&P500 added 10.91 (0.52%) to 2,102.45. Dow stands way below its 200 DMA (17,825) and is trying to fall through short term support. S&P500 is trying to close below its 200 DMA. Both have formed rounding tops. S&P500 close below 2,039 and Dow below 17,038 will put the pedal to the metal downside.

    Dow in Gold

    Dow in Gold and Dow in Silver have done everything I wanted ’em to, except crashing through their 200 day moving averages below, but they’ll get to that pretty soon. Every indicator is flashing lower prices.

    Dow in Silver

    Dow in gold today closed down 0.8% to 15.69 oz, and has bounced above its 50 DMA. Doesn’t matter a little bit, just look at that broken chart.

    Dow in silver closed 1,147.49 oz today, not far above the 200 DMA (1,102.60).

    I remind y’all that these two indicators tell us — reliably and in advance — whether stocks or silver and gold will outperform. That long time since 2011 that stocks have outperformed metals has ended with the throwover tops this summer. Time to swap stocks for silver and gold.

    US Dollar index has clearly topped and changed trend downward, although in the last three days it has bounced up off the 50 DMA. Dow below the dollar will begin falling like a meteor when it passes the last low at 95.945.

    Of course the falling dollar has meant a rising euro. Given the euro’s internal corruption, that wouldn’t be true in a sane world, but we don’t live in a sane monetary world. 7 July market the beginning of the euro’s rise when it crawled through its 20 DMA, then rose, even gapped the day the Chinese roiled the markets with their devaluation, to $1.112.15. It has since backed down, but only to fall to the downtrend line that had ruled it so long. In other words, the return for the final kiss good-bye before take-off.

    Bond and T-note yields are trying to fall through their 200 DMAs, so bond prices are rising, but without much speed or conviction. Among the inflation markets, copper seems to have bottomed and crude oil has stopped falling (maybe).

    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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