• Silver and Gold Prices Both Made New Lows for the Move, But Not by Much

    11-Nov-15 Price Change % Change
    Gold Price, $/oz 1,084.70 -3.50 -0.32%
    Silver Price, $/oz 14.26 -0.09 -0.65%
    Gold/Silver Ratio 76.055 0.254 0.34%
    Silver/Gold Ratio 0.0131 -0.0000 -0.33%
    Platinum Price 882.80 -25.20 -2.78%
    Palladium Price 576.80 -16.00 -2.70%
    S&P 500 2,075.00 -6.72 -0.32%
    Dow 17,702.22 -55.90 -0.31%
    Dow in GOLD $s 337.36 0.02 0.01%
    Dow in GOLD oz 16.32 0.00 0.01%
    Dow in SILVER oz 1,241.22 4.23 0.34%
    US Dollar Index 99.16 -0.23 -0.23%

    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 both made new lows for the move, but not by much. Gold shaved off $3.50 (0.32%) to $1,084.70. Silver lost 9.4 cents (0.65%) to $14.262.

    The GOLD PRICE five day chart looks like a vibration, not a wave. I can’t see any pattern to it. That suggests — get this — there IS no pattern to it, other than sideways, so it may be bottoming. About here lots of voices are calling for gold to drop to $1,000 or $750. My voice ain’t among ’em. My voice (mercy! I’m hearing voices now) says they will stop around the summer lows, which is about right here.

    By the way, the US dollar index ALSO shows no discernible pattern, just sideways movement. Markets don’t stand still like this for long. I feel like the fellow Jerry Clower talked about. They were out coon hunting and treed what they thought was a coon. Maurice Ledbetter climbed this big old oak to knock the coon off the limb, but when he got out there it was a bobcat. There commenced an awful wailing and howling and fighting and Maurice yelled, “Some of y’all shoot up here!” Hunters on the ground yelled back, “We can’t! We might hit you.” Maurice shot back, “Well shoot anyway. One of us has got to have some relief!”

    Big retailer Macy’s announced today it expects this year’s sales to fall 1.8 – 2.2%. First Walmart, now Macy’s, so y’all explain to this ignorant nat’ral born durn fool from Tennessee where the economic recovery will come from without consumer spending? Not even a central bank economist can parse that riddle.

    Stocks opened the day higher, then quickly slipped below the water’s surface, down, down, down. About 11:00 they began climbing again to the morning’s high, reached that about 1:00, then fainted again, leaving a double top behind, and faded the rest of the day. It’s not the size of the drop that signifieth something, but the quality, the double top with faint following. Dow lost 55.99 (0.32%) to 17,702.22. S&P500 kept pace, losing 6.72 (0.32%) to 2,075.00. Today’s weakness following six days’ downtrend whisper that tomorrow will not be a bright, shiny day on Wall Street.

    On their RSI indicators both the Dow in Gold and Dow in Silver are extremely oversold. Dow in Gold ended today at 16.30 troy ounces, still backing down. Dow in Silver closed today at 1,238.35 troy ounces, slightly above the July high at 1,236.37 oz. Again I recall that the Dow in Gold and Dow in Silver frequently top before the gold and silver dollar prices. Wherefore this ought to beget a small hope for silver and gold — small, measured in grams, not pounds.

    US dollar index has every technical right to forge higher, but continues to vacillate. Today lost 23 basis points to 99.16, after gaining 31 basis points today. Sawing back and forth, should move higher shortly.

    Yen and euro are both dead as a run-over armadillo. Yen rose 0.24% to 81.38, euro rose 0.28% to $1.0753. Both have broken down.

    Meanwhile speculator enthusiasm for the dollar is running so high that it has the ten year treasury yield punching its noggin through the downtrend line from 2007. Remember the Fed does NOT control market interest rates, only manipulates and intimidates them by manipulating its own lending rate. Although the Feddists claim to be Masters of the Universe, they could not begin to stop rising rates if the market were determined to move yields higher. This is the tightrope those Fed clowns are trying to walk.

    Illusion! All around us we are ruled and snookered by illusion: markets, politics, economics. Whoa! Look at that! Janet Yellen is naked!

    Oil and copper have been moving lower with silver and gold – copper, but not oil, to a slight new low. Makes me wonder if we are seeing this month a whole raft of lows, silver and gold and commodities, that will prove to be long term lows.

    I feel just like Maurice. I got to have some relief.

    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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