• Time To Buy Silver and Gold, The Long Winter of Correction Has Passed

    18-Sep-15 25-Sep-15 Change % Change
    Gold Price, $/oz. 1,138.10 1,146.00 7.90 0.7
    Silver Price, $/oz. 15.154 15.106 0.048 -0.3
    Gold/Silver Ratio 75.102 75.864 0.762 1.0
    Silver/gold ratio 0.0133 0.0132 -0.0001 -1.0
    Dow in Gold $ (DIG$) 297.60 294.29 -3.31 -1.1
    Dow in gold ounces 14.40 14.24 -0.16 -1.1
    Dow in Silver ounces 1,081.20 1,080.01 -1.19 -0.1
    Dow Industrials 16,384.58 16,314.67 -69.91 -0.4
    S&P500 1,958.03 1,931.34 -26.69 -1.4
    US dollar index 95.00 96.43 1.43 1.5
    Platinum Price 984.50 951.20 -33.30 -3.4
    Palladium Price 610.35 667.55 57.20 9.4

    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

    Today GOLD PRICE backed off $7.80 (0.6%) to $1,146.00 while SILVER through tight-clasped fingers gave up on 1.9 cents, closing at $15.106.

    Gold Price

    Ain’t no cloudy sky here at the Moneychanger’s. This is normal market action. Both silver and GOLD PRICES have rallied off July lows. Rallies, remember, go up and down, zig and zag, two steps up, one step back. Yesterday the gold price hit that downtrend line from the January high, and today backed off a smidge. Recall yesterday, when it rose $22.20, and be content. Recall the market proverb: bulls get rich, and bears get rich, but pigs get slaughtered.

    Silver Price

    Yesterday SILVER ran into the downtrend line from the April 2013 high. Again, at major resistance markets often have to take two or three runs at it to break through. Look, it’s in an uptrend — higher highs and higher lows — from the July bottom. It’s the early stages of a rally. Wait till the jet fuel kicks in.

    Time to buy silver and gold. The long winter of correction has passed.

    In the global scheme of gold and silver markets, we in the retail market are mere pissants. Yet last week one pissant retail dealer I know bought a big ($5 bn/yr +) dealer out of 100 oz bars (he refused to sell any more) AND thousand ounce bars. Deliveries of 100 oz bars and one ounce rounds have stretched out to 4 – 6 weeks, nobody knows when the US mint will deliver silver American Eagles, and the Canadian mint has fallen behind on delivering silver Maple Leaves. Those who have a few silver American Eagles are selling them north of $5/oz over spot, and US 90% silver coin, one of the very few actually in hand and shippable silver, costs $4.65/oz over spot at wholesale. Almost everything else carries a wait of 4 – 6 weeks.

    Even given the American silver retail products industry’s tinyness as opposed to the world market, doesn’t it seem awfully curious that this little pissant corner of the market could run slap out of silver? I don’t fancy those internet gurus who can leap to tall (unjustified) conclusions at a single bound, but this retail market silver shortage leaves me wondering just how much silver really exists in the world — silver that can be brought to market immediately.

    If our little footnote market indicates anything, it’s that far less ready-for-market silver exists than people suspect. I’ve always called silver the Rodney Dangerfield of precious metals because it don’t get no respect, but one of these days silver will avenge that contempt with soaring prices. Hide’n watch.

    Demonstrating that the American public may in fact be as stupid as Our Masters believe, stocks rose today after Comrade Janet Yellen’s drooling about higher interest rates to come later this year. In a pig’s eye. Anyway, emboldened by Janet’s silly blarney, stock buyers eager for punishment crowded in and ran the Dow up 264 points, but, whoops, after 2:00 the rats started leaping out of the ship and it closed up only 113.35 (0.7%) at 16,314.67. S&P500 fared not so well, ending down 0.9 (0.05%) at 1931.34.

    Is this bad? Let me count the ways. First, stocks made the gains, but were too weak to hold on to them — too many sellers waiting for just one more tick up. More, the S&P500 and the Dow gainsayed each other, not ever a rosy outcome for indices that kiss and hold hands. Finally, both indices ended the week lower, never a token of good times to come.

    Speaking of sellers, y’all ought to take advantage of ANY stock rally to sell stocks. More weeping, wailing, and gnashing coming.

    US DOLLAR INDEX followed stocks up, climbed over its 50 DMA, shot up to a 96.88 high, then fell back to close almost dead on the 50 DMA (96.42). Buyers and sellers evenly matched. Dollar will eventually resolve, downward. Ultimate target is a dollar index below 50.

    The UN has published its Global Goals which promise to end extreme poverty, fight inequality and injustice, fix climate change, and cure athlete’s foot and halitosis. Where do they get this stuff? Listen, folks, all these moonbeams will vanish quicker’n you can say “Morons in charge” when the economy gets tough, and toughen it will. Truth is, if you can’t survive digging grubs out of flower pots, you may not make it. Y’all hear that, millennials? Ain’t no Starbucks in flower pots. I ain’t worried. I got me a tin bill and I can peck in the dirt with the chickens.

    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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