• Gold Price Within Two Days of Turning Up Again, Silver Will Follow

    26-Aug-15 Price Change % Change
    Gold Price, $/oz 1,124.60 -13.60 -1.19%
    Silver Price, $/oz 14.04 -0.57 -3.89%
    Gold/Silver Ratio 80.094 2.188 2.81%
    Silver/Gold Ratio 0.0125 -0.0004 -2.73%
    Platinum Price 980.20 4.10 0.42%
    Palladium Price 529.65 -10.45 -1.93%
    S&P 500 1,940.51 72.90 3.90%
    Dow 16,285.51 619.07 3.95%
    Dow in GOLD $s 299.35 14.82 5.21%
    Dow in GOLD oz 14.48 0.72 5.21%
    Dow in SILVER oz 1,159.85 87.54 8.16%
    US Dollar Index 95.13 0.59 0.62%

    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 lost $13.60 (1.2%) to $1,124.60 on Comex while SILVER plunged 56.9 cents (3.9%) to $14.041.

    What I like about y’all is that y’all keep your heads in a crisis. While everybody else is moaning and groaning about silver and gold dropping, y’all spotted that GOLD/SILVER RATIO at 80:1 and called me up to swap gold for silver.

    More than that, as silver falls the premium on US 90% rises so those swaps from US 90% silver coin to 100 oz silver bars are now approaching a 20% gain in ounces.

    Be advised the wait even on 100 oz silver bars is two to four weeks. However, over time premium always disappears, so if you don’t capture it when you can, you lose it. Call us at (931) 766-6066 to execute a swap.

    I have to attend my 50th high school class reunion the next two days in Memphis, so I won’t be here tomorrow or Friday, but I’m going out on a limb here.

    The GOLD PRICE today fell almost to its 20 DMA ($1,114.29) and an internal support line. With my saw in hand, I’m crawling out on that limb: I believe it is within two days of turning up again. Silver will follow, and the goofs who have been shorting silver and gold will be looking at their heads on a platter in a few days.

    If I’m right, this is a spectacular buying opportunity for silver and gold. If I’m wrong, well, it could be worse: you could buy stocks.

    One axiom y’all have to learn is this: the Establishment has only two weapons against financial panic, blarney and liquidity. Liquidity means flushing the market with money (think TARP or QE4). Blarney is propaganda, or Blowing Smoke. They trot out the regional Fed Presidents (like NY Fed prezzy Wm. Dudley today) or the Treasury Secretary or even Warren Buffet and Harvard econ professors if things get really bad. These folks sing the siren song to sooth the public’s soul. Blowing Smoke.

    And, yes, these two weapons really do compose their entire arsenal, Mushrooms. That’s how thin they are, and how huge and ridiculous their con game really is.

    Object of Dudley’s comments was likely the US dollar, which rose 59 basis points today to 95.13. Dollar’s tanking earlier this week makes it appear that the entire dollar rise from last summer was fuelled by nothing more than speculators’ expectations the Fed must raise rates. When the Chinese devalued the yuan and US stocks tanked, however, there was no way the Fed would raise rates. Hence Dudley’s rationalization. He’s saying to the public, “It’s all right, these are not the droids you are looking for.” His words also build the impression the Fed is watching and on top of things. Sort of like saying your six year old is watching you work on the car and will do the ring job for you.

    Just remember: blarney and liquidity. It helps make sense out of all these moves and put them into perspective.

    Stocks rallied in a predictable, showy, but meaningless rally. Dow rose 619.07 (3.9%) to 16,285.51. S&P500 rose 72.9 (3.9%) to 1,940.51. Both are buried deep beneath their 200 DMAs. Broken, can’t be fixed. DO NOT LET THE BLARNEY SUCK YOU IN.

    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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