• If Silver and Gold Prices Don't Turn Up Soon This Could Become Very Ugly

    3-Nov-15 Price Change % Change
    Gold Price, $/oz 1,114.20 -21.60 -1.90%
    Silver Price, $/oz 15.24 -0.17 -1.10%
    Gold/Silver Ratio 73.091 -0.600 -0.81%
    Silver/Gold Ratio 0.0137 0.0001 0.82%
    Platinum Price 961.20 -17.20 -1.76%
    Palladium Price 643.80 -6.35 -0.98%
    S&P 500 2,109.79 5.74 0.27%
    Dow 17,918.15 89.39 0.50%
    Dow in GOLD $s 332.44 7.95 2.45%
    Dow in GOLD oz 16.08 0.38 2.45%
    Dow in SILVER oz 1,175.42 18.69 1.62%
    US Dollar Index 97.26 0.30 0.31%

    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

    Rotten day for SILVER and GOLD PRICES. The gold price plunged $21.60 (1.9%) to $1,114.20. Silver fell 16.9 cents (1.1%) to $15.244.

    In fact the GOLD PRICE closed below the downtrend line from the January high AND the uptrend from the July low, slicing through my $1,120 target. That might be an exhaustion day, but if so must turn around tomorrow. Otherwise, take your pick of lower targets becaue it is a breakdown.

    SILVER, on the other hand, took a licking but remains above its 50 DMA and uptrend from the August low. Tomorrow that uptrend line will stand about $15.10. Silver needs to hold that line or ’twill turn very ugly.

    I feel like the old boy who was trying to say something nice about his blind date, but the best he could come up with was, “I reckon her folks save a lot of money on mirrors.”

    If silver and gold prices don’t turn up soon, this could become very, very ugly.

    Yet another low energy day.

    US Dollar

    US dollar index rose 30 basis points to 97.26, after three lower days running. That does creep above the downtrend from the March high, but barely. This situation is larded with entropy. Dollar cannot remain here forever, teetering on the edge of climbing or falling. Some resolution will come soon, if for no other reason, to have mercy on us who are worn out with watching it crabwalk sideways.

    The euro, the currency with no reason to exist, fell 0.46% to $1.0962. The yen backed off 0.25% to 82.58. Yawn.

    Stocks edged up. Dow added 89.39 (0.5%) to close at 17,918.15. (Y’all interested yet?). S&P500 gained 5.74 (0.27%) to 2,109.79.

    Dow in Gold and Dow in Silver look worse and worse, having corrected 83.3% of the preceding fall. Makes me wonder.

    Oil is trying to come to life again. West Texas Intermediate Crude shot through its 20 day moving average today.

    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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