• Gold Price is Magnificently Bullish Climbing Above it's 20 and 50 Day Moving Averages

    13-Jan-16 Price Change % Change
    Gold Price, $/oz 1,087.50 1.90 0.18%
    Silver Price, $/oz 14.15 0.41 2.95%
    Gold/Silver Ratio 76.882 -2.128 -2.69%
    Silver/Gold Ratio 0.0130 0.0004 2.77%
    Platinum Price 850.20 12.70 1.52%
    Palladium Price 486.55 14.15 3.00%
    S&P 500 1,890.28 -48.40 -2.50%
    Dow 16,151.41 -364.81 -2.21%
    Dow in GOLD $s 307.01 -7.48 -2.38%
    Dow in GOLD oz 14.85 -0.36 -2.38%
    Dow in SILVER oz 1,141.85 -60.21 -5.01%
    US Dollar Index 98.95 -0.04 -0.04%

    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

    The GOLD PRICE gained only $1.90 to $1,087.50 while the SILVER PRICE today leapt 40.5¢(2.9%) to $14.145. Then after Comex closed the price of gold jumped up six bucks, an unusual move lately. Silver’s greater rise sucked the GOLD/SILVER RATIO down from 79.010 yesterday to 76.882 today, a 2.7% drop.

    I should not have been so negative yesterday because silver and gold held on at support, if not at my specific numbers. Both charts show upside-down head and shoulders patterns, which take their frustrating time to unroll.

    Gold/Bank Index

    Before I forget it, I want y’all to go, look, and ponder the Gold/Bank Index spread, Next to the Dow in Gold and Dow in Silver this indicator probably most sensitively shows the changes in sentiment that drives silver and gold. By that I mean monetary demand, which arises out of falling faith in the financial system. When people trust the financial system, they buy those [rotten] big bank stocks and sell gold. When they don’t trust the system, they sell big bank stocks and buy gold.

    Y’all look at that chart. Yes, its RSI is overbought, so we might get a reaction soon, but look how it has gapped up since 2016 began. Needs to get through August and September highs above 17, but given that the July and December lows form a double bottom, that should happen soon. The GOLD PRICE is magnificently bullish.

    So is gold’s leap in the aftermarket today. Not much more than a footnote, but a welcome and encouraging one. The gold price climbed back above the $1,088 neckline and above its 20 and 50 DMAs, so can still finish out the week wreaking vengeance on its croaking detractors.

    I’d like to make some wise statement about silver’s performance today, but I haven’t a clue what caused it. About 10:00 a.m.. silver jumped straight, staring up to $14.10. Most likely it was arrogant shorts caught in the stops. Hope it burned ’em good, because that will keep them chary of shorting more.

    The move took silver above its 20 DMA and to the 50 DMA, but, bless its heart, ’tain’t enough. Silver MUST close above $14.40.

    The price of gold is moving higher tomorrow, looking at the one day chart. When I saw that leap in the aftermarket, my resistance broke and I bought some.

    Here’s a report that appeared on Zero Hedge from Jeff Berwick, http://bit.ly/1OiHBHm Apparently not only has the Baltic Dry Index (a measure of international shipping activity) collapsed, but it appears that the North Atlantic has no cargo ships. They’re anchored, without anything to carry. “Commerce between Europe and North America has literally come to a halt.” If this is accurate, what do y’all reckon it portends for the US and world economies? Ask Miss Janet, see if she can say.

    Stocks are being hammered. Since 31 December 2015 the Dow has fallen 7.3%, the S&P500 7.5%. Russell 2000 has plunged 22% from its June 2015 high. Since their May and summer highs, the Dow has plummeted 11.8%, the S&P500 11.2%, the Wilshire 5000 13.6% (and it closed lower today than in August and September). Dow Jones World index has tumbled 16.3% from last May’s high. And Netflix, darling of Wall Street, fell 8.6% today alone. After all, Netflix doesn’t actually MAKE anything — they rent movies. Ahhh, the modern economy! The new age! We are all going to get rich renting each other movies and washing each other’s laundry.

    Today the Dow puked up 364.81 points (2.21%) for a 16,151.41 close, scaring the snot out of 16,000. S&P500 sank 48.4 to 1,890.2 (2.5%). Stocks declined steadily all day long. Promise even of a relief rally vanished early on. More downside coming, and hard.

    Dow in Gold
    Dow in Silver

    Dow in Gold dropped 2.9% to 14.77 troy ounces, far below its 200 day moving average (15.38 oz) and cascading. Breaking 14 oz will confirm the double tops of July and November as tops. Not far beneath that, about 13.50 oz, the Dow in Gold will punch through the uptrend line from 2011.

    Dow in Silver fell 4.95 to 1,140.96 and closed below the 200 dma (1,146.7 oz). Chart breaks down about 1,190 oz.

    For all the fear rampaging across the world, the US dollar index still fell 4 basis points today to 98.95. The yield on the 10 year treasury is plunging, so folks are buying bond with both hands — that’s not the dollar’s problem. No answer yet on which way the dollar will jump.

    Euro rose 0.21% to $1.0879, but without changing the chart. Yen lost 0.1% to 84.95.

    Oil stopped falling today, so I wonder what the pundits will blame falling stocks on tomorrow. WTIC rose 2.65% to $31.39 a barrel. Yesterdays interday low as $29.93, lowest since oil began sliding.

    Aurum et argentum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger

    © 2016, 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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