• Gold Price Sank $4.90 or 0.4 Percent Closing at $1,127.10

    29-Sep-15 Price Change % Change
    Gold Price, $/oz 1,127.10 -4.90 -0.43%
    Silver Price, $/oz 14.57 0.03 0.21%
    Gold/Silver Ratio 77.363 -0.502 -0.64%
    Silver/Gold Ratio 0.0129 0.0001 0.65%
    Platinum Price 917.10 -9.00 -0.97%
    Palladium Price 657.40 6.15 0.94%
    S&P 500 1,884.09 2.32 0.12%
    Dow 16,049.13 47.24 0.30%
    Dow in GOLD $s 294.35 2.14 0.73%
    Dow in GOLD oz 14.24 0.10 0.73%
    Dow in SILVER oz 1,101.59 0.90 0.08%
    US Dollar Index 96.04 -0.14 -0.15%

    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 are confused. The gold price sank $4.90 (0.4%) to $1,127.10 while silver rose 3.1 cents (0.2%) to $14.569. Confusion’s never positive.

    Gold/Silver Ratio

    Pondering the SILVER PRICE daily chart, I see that both Monday and today silver made lows at $14.50 — a double bottom? It did move up sluggishly off the low. Silver today touched the bottom boundary of that even-sided triangle, but did absolutely nothing to distinguish itself. MACD indicator is close to turning down. RSI stands below 50 at 45.84.

    Meanwhile the GOLD/SILVER RATIO gapped up yesterday, which bodes nothing much good for silver and gold prices rallying. Wouldn’t want that to move higher. Chart on the right.

    The PRICE OF GOLD sank to pierce its 20 Day Moving Average, but then closed above it. Neither silver nor gold prices are telling us a lot, but that may be telling us a lot, too. They’re lethargic, weak, and slow with very small daily ranges. No trading. Not good.

    I suspect most folks are waiting for the other shoe to drop with stocks, and so are afraid to jump one way or the other. I fear they will be longing for the tedium one day soon.

    Sturgeon’s Revelation says that 90% of everything is crap. I’m not sure 90% of the news is crap, but most of it is not worth bothering with, and some great percentage of the media and internet people who massage the news don’t repay listening to, but now and then something important turns up. Here are a couple of those pieces.

    Zero Hedge published an article yesterday, “UBS Is About To Blow The Cover On A Massive Gold-Rigging Scandal.” Read it here, http://bit.ly/1KQ4HR3

    Y’all have watched as giant banks have paid multi-zillion dollar settlements for rigging every kind of market, from interest rates to kumquats. Now — surprise, surprise, after Gold Anti-Trust Action Committee (GATA) has been exposing it for more than 15 years — German and Swiss regulators are closing in on gold market manipulation.

    What do all these settlements have in common? The same mega-banks are the perpetrators, they pay piddlin’ fines compared to the prodigious pockets they’ve picked, and no perp ever goes to prison. Whoops, they also show that most markets in the world today are manipulated, either by the market makers or by governments.

    Wait, wait, I’ve got to grab my wastebasket and puke. All this pus oozes out of the same people who plump for “free markets” and pose as Captains of Capitalism when they’re simply Captains of Cronyism who know their government buddies will never indict them. There’s a proverb in Ecclesiastes, “Because sentence against an evil work is not executed speedily, therefore the heart of the sons of men is fully set in them to do evil.” Slow or speedy, a surprise awaits them.

    Glencore Chart

    Another article appeared on Zero Hedge yesterday, “Glencore Implodes,” at http://bit.ly/1h8DyRx Glencore is an Anglo-Swiss corporation, tenth largest in the world, that trades and supplies commodities: 60% of the zinc market, 50% of copper, 9% of grains, and 3% of the oil market. It grew out of Marc Rich and Company in the 1990s — y’all remember, the same Marc Rich indicted for tax evasion and illegal oil deals with Iran during the Iran Hostage Crisis. Yep, the same one Prexy Bill Clinton, moved only by his native compassion I’m sure, pardoned just as he was leaving office. Right, he pardoned Rich even before he stood trial. Neat deal, huh?

    Rich’s key to success was leverage, financing his purchases with bank credit. It appears his successors followed in his footsteps, raking in larger and larger market share, and piling debt higher and higher. The stock has collapsed from $227 in July to 77 today.

    I mention Glencore because this is the kind of bankruptcy that can suck down the whole world into the maelstrom of “systemic collapse.” Not saying it will, only that the scale, like Lehman Brothers, is sufficient.

    With those cheery thoughts behind us, let’s look at today’s markets.

    Stocks today went through six — count ’em, six — reversals. And after all that sound and fury, it signified only a Dow 47.24 (0.3%) higher at 16,049.13. S&P500 wasn’t that peppy, either, up 2.32 (0.12%) to 1,884.09. Stocks are on the edge of a wet and slippery cliff, and they ain’t Indiana Jones and have no whip handy. More blood and tears will flow, much more.

    So stocks are falling, and the dollar is falling, too. Lost 0.14 (0.15%) today to end at 96.04. I see by the yield on 10 year Treasury notes (down yesterday and again today), that bond prices are rising, which makes sense for money fleeing stocks. But what does puzzle me is the dollar continuing to erode. Money running into dollars usually means “running into treasury securities,” but the dollar is limp as freshly boiled vermicelli. Euro rose a nothing 0.04% to $1.1252 and the yen rose 0.11% to 83.51, but neither one of those charts shows money pouring into them. Finally, gold isn’t rising, either, so where is that fleeing money going? Or maybe the panic hasn’t quite begun yet.

    On 29 September 2008 following bankruptcies of Lehman Brothers and Washington Mutual, the Dow fell 777.68 point, largest single day point loss in history. Y’all remember that number.

    On 29 September 1979 gold hit a record $400.20 an ounce in Hong Kong.

    On 29 September 1916 John D. Rockefeller became the first billionaire. The second billion came a lot easier.

    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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