• Gold Price Dropped $9.60 or 0.9 Percent to Close on the Comex at $1,054.20

    2-Dec-15 Price Change % Change
    Gold Price, $/oz 1,054.20 -9.60 -0.90%
    Silver Price, $/oz 13.98 -0.08 -0.54%
    Gold/Silver Ratio 75.413 -0.275 -0.36%
    Silver/Gold Ratio 0.0133 0.0000 0.36%
    Platinum Price 832.40 -3.00 -0.36%
    Palladium Price 525.70 -12.95 -2.40%
    S&P 500 2,079.51 -23.12 -1.10%
    Dow 17,729.68 -158.67 -0.89%
    Dow in GOLD $s 347.66 0.05 0.02%
    Dow in GOLD oz 16.82 0.00 0.02%
    Dow in SILVER oz 1,268.31 -4.43 -0.35%
    US Dollar Index 100.01 0.18 0.18%

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    The GOLD PRICE dropped today, flinching ahead of the European Central Bank meeting tomorrow. Yellen also spoke out of both sides of her mouth today, a job requirement for any Fed apparatchik. Fed-watchers, which is everybody but me, interpreted her remarks as an intention to raise interest rates later this month.

    The GOLD PRICE dropped $9.60 (0.9%) to close Comex at $1,054.20. The SILVER PRICE lost 7.6 cents (0.5%) to $13.979. Nothing will happen until after the ECB announcement tomorrow, then we’ll see.

    The shadow of the ECB meeting gets the blame for gold’s drop, but mark that gold only made a double bottom with last Friday’s low. This would be a great place for gold to reverse.

    We wait, we watch, we know that gravity’s law hath not been repealed.

    If on Thursday the ECB lower interest rates deeper into negative territory and announce more Quantitative Easing, they will scuttle the euro (hoping to raise stocks) and send the dollar soaring. Relative interest rates between currencies (nominal interest rate less expected inflation loss) primarily determine currency exchange rates. If the charm-challenged Mrs. Yellen and her dipsy dwarves raise US interest rates, they’ll push up the dollar and scuttle the US export economy. Probably also scuttle the stock market and the whole US economy. The “recovery” Yellen and the other Fed-niks brag about exists wholly and entirely in their brutish imaginations.

    Central bankers find themselves in the same situation as Harry Houdini’s famous trick where he was suspended head down and feet up in a big glass box full of water, bound in chains and locks. Trouble is, central bankers don’t know how to pick a station on a radio dial, much less pick all those locks and untangle those chains.

    In Greece the government has ordered all taxpayers to declare all cash “under the mattress” or safe deposit boxes containing more than 15,000 euros as well as jewelry, precious stones, and gold beginning on 1 January 2016. Clearly, as soon as the government knows who has what, they’ll tax or confiscate it. In the words of my Greek friend, HG, “Good luck trying to enforce that one. Molon labe.” That’s the response the Greeks at Thermopylae gave when the Persians demanded they surrender their weapons: “Molon labe! Come and take ’em.”

    In a replay of volatility, stocks today lost nearly everything they gained yesterday. Dow gave back 158.67 (0.89!) to 17,729.68 while the S&P500 fell 23.12 (1.1%) to 2,079.51.

    US dollar index rose 18 basis points (0.18%) to 100.01. No new information there. Euro dropped 0.13%, market’s expecting bad news for the euro from the ECB. Yen dropped 0.29% to 81.16.

    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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