• Price of Gold Gave Back it's Christmas Gains and Lost $6.10 or 6.2 Percent to $1,070.50

    28-Dec-15 Price Change % Change
    Gold Price, $/oz 1,070.50 -6.70 -0.62%
    Silver Price, $/oz 13.87 -0.50 -3.46%
    Gold/Silver Ratio 77.164 2.203 2.94%
    Silver/Gold Ratio 0.0130 -0.0004 -2.85%
    Platinum Price 880.80 -2.60 -0.29%
    Palladium Price 552.00 -7.50 -1.34%
    S&P 500 2,056.50 -4.49 -0.22%
    Dow 17,528.27 -23.90 -0.14%
    Dow in GOLD $s 338.48 1.65 0.49%
    Dow in GOLD oz 16.37 0.08 0.49%
    Dow in SILVER oz 1,263.48 42.04 3.44%
    US Dollar Index 97.96 -0.05 -0.05%

    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 gave back all the tiny gains they had struggled to gain in Christmas week. Silver lost 49.7¢ (3.5%) to $13.873 on Comex. The PRICE OF GOLD lost $6.70 or 6.2% to $1,070.50. They are replaying their disappointing performance of December 2014, but remember that both metals came blasting up out of that hole in January 2015.

    The price of gold fell back to its 20 DMA but silver really slipped, way below its 20 DMA and clean back to November and December lows. ‘Tain’t really so rotten. Last 2 month’s trading looks like an upside-down head and shoulders, making the right and last shoulder.

    Gold/Silver Ratio

    So although I am phlegmatic as a toad about the price movement today, I heartily disliked the jump in the GOLD/SILVER RATIO to 77.164 (Comex closing basis). That needs to turn around tomorrow or it becomes a croaking raven sent by the undertaker.

    Have I lost my mind? I just can’t get rattled about the prospect of silver or gold dropping further. I don’t see it. Of course, I’m just a nat’ral born durned fool, and I’ve been fooled lots of times before.

    An article on David Stockman’s website today noted that 405 days ago, on 18 November 2015, the S&P500 closed at 2,052 against today’s 2,056.50. 417 days ago, on 6 November 2014 the Dow closed at 17,554, against today’s 17,528.27. In other words, in the teeth of all they hype that screams you must be in the market and can’t stay on the sidelines, you would have made nothing — and taken on a bucketload of risk — to own stocks for the last 400+ days.

    Think about that. Stocks have churned sideways, striving all year to break out in a new rally, without even a glint of success.

    THIS is what a topping market looks like. This perfectly describes the upside-down bowl or rising top that has capped stocks. All the same, the propaganda spewed from the Fed and Wall Street implies that next year will bring another bumper crop of stock profits. Well, y’all believe that if you want, and don’t listen to a nat’ral born durn fool from Tennessee, but rather than catching bumper profits, stocks are liable to catch you between two bumpers next year.

    Dow in Gold
    Dow in Silver

    In spite of stocks’ relative strength, no new highs have appeared in the Dow in Gold or Dow in silver. Dow in gold remains below its 20 DMA.

    US dollar index fell again today, 5 basis points to 97.96, but it’s not the drop’s amount that hurts, it’s the position. Below the 20 and 50 day moving averages. Part of a series of lower highs and lower lows. Smelling like 8 day old mackerel, and pointing further down. Even that can’t pull any action out of the euro, which rose a token 0.05% to $1.0970. Yen dropped 0.07% to 83.07. Yen might be headed higher, but it’s dangerous to judge such matters based on quirky holiday trading.

    I won’t be sending a commentary tomorrow since I will be finishing up my monthly Moneychanger newsletter. See y’all again on Wednesday, God willing.

    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.

    Write a comment