• Silver and Gold Prices Rose Today with the Gold Price Up $17.60 at $1,091.50

    8-Jan-16 15-Jan-16 Change % Change
    Gold Price, $/oz. 1,102.00 1,091.50 -10.50 -1.0
    Silver Price, $/oz. 13.908 13.884 0.024 -0.2
    Gold/Silver Ratio 79.235 78.616 -0.619 -0.8
    Silver/gold ratio 0.0126 0.0127 0.0001 0.8
    Dow in Gold $ (DIG$) 306.63 302.80 -3.84 -1.3
    Dow in gold ounces 14.83 14.65 -0.19 -1.3
    Dow in Silver ounces 1,175.33 1,151.55 -23.78 -2.0
    Dow Industrials 16,346.45 15,988.08 -358.37 -2.2
    S&P500 1,922.03 1,880.29 -41.74 -2.2
    US dollar index 98.60 99.00 0.40 0.4
    Platinum Price 877.10 825.70 -51.40 -5.9
    Palladium Price 493.60 486.95 -6.65 -1.3

    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 popped up $17.60 (1.6%) to $1,091.50 while the SILVER PRICE jumped 15¢ (1.1%) to $13.884.

    Silver and GOLD PRICES keep lurching from top to bottom of this range. Odd behavior in nature, so maybe it’s artificial. Me, if I were those Nice Government Men, last thing on earth I’d want to see is stocks tanking while the gold price rockets, so I’d have to take measures to forestall that, like selling lots of silver futures to drive it down and whack the price of gold with a rabbit punch in the neck. Why, come to think of it, I’d sell them platinum futures, too, for good measure.

    But only a conspiracy nut who believes that governments manipulate markets would say such a thing, and we all know I’m a gennelmun. A nat’ral born durned fool from Tennessee, but a gennelmun all the same.

    But let us pretend we live in an honest world. The gold price five day chart shows a V-bottom yesterday with a recovery today. Said recovery will confirm said V-bottom as a bottom when it climbs through $1,095. Clearly, it may not linger there but must continue to advance smartly through the last high at $1,113.

    The SILVER PRICE five day chart looks like one of them ladies’ fashion colours that never occurred in nature. It’s got that mesa, up on Wednesday down on Thursday, with another spike today to 1414¢ which “sellers” immediately slapped down.

    However, this week was positive for one reason: no matter how many times they are slapped down, silver and gold get back to their feet, toe the line, and start slugging. This is the stuff that founds rallies.

    Another little teaser: the GOLD/SILVER RATIO (end of day) this week hit 80.08 and since has plunged. That’s health to a silver and gold price rally.

    Gold/Bank Index

    Shucks, let me add another little fillip: the Gold/Bank Stock index chart. I remind y’all, when the herd trusts the financial system, they buy big bank stocks and sell gold. When the system panics them, they sell big banks and buy gold. The chart is a fraction, so when the number grows larger, it means the numerator (gold) is growing faster than the denominator (bank stock index). Which way is it going?

    Color me wrong yesterday for anticipating a relief rally in stocks: they busted today. Dow dove 2.2% for the week, most of that today after an up and down week. Other indices were even sicker. Dollar index remains weak and indifferently upward. Silver lost 2.4¢, rotten after last week’s promise, and gold lost 1%, also rotten but getting less so. Panic fills the air. My friend CH remarked, “Fed raised interest rates a measly 1/4 percent and sent stock markets tumbling world-wide, vaporizing trillions in stock value since the year began.” Bloomberg reported that global stock market capitalization has lost $15 trillion in seven months.

    Dow Jones

    After stark, sharp market drops, one is inclined to look for a relief rally of some kind. Instead of rallying, stocks suffered their worst day of the New Year. Dow lost 2.4%, S&P500 2.2%, Nasdaq Comp 2.74, Nasdaq 100 -3.09, Russell 2000, down 1.75%. Can they rally from here, or are they locked in a powerful downwave not yet ready to open its jaws? I’m opting for the latter. Behold, the 7 month Dow chart!

    Dow lost 390.97 or 2.4% to close below 16,000 at 15,988.08, a sure morale-wrecker. S&P500 broke 1,900, losing 41.55 (2.16%) to 1,880.29. Scorecard for the year is brutal: Dow down 8.2%, S&P500 down 8%, Dow Transports – 10.9%, Russell 2000 -11.3%, Wilshire 5000 -8.7%, Nasdaq Comp -10.4%, N-100 – 9.8%.

    Dow in Gold
    Dow in Silver

    All this shows yet more tellingly in the Dow in Gold and Dow in Silver. Since the year began the Dow in gold has cascaded 10.6% and the Dow in Silver 8.8%. Dow in gold has been twittering and shivering the last few days, but commenced tumbling again today, down 3.31% to 14.69 troy ounces of gold to buy the Dow. Dow in Silver plumped 2.98% to 1,149.39 troy ounces, almost below the 200 DMA (1,147.88) again and sure to drop there soon.

    Greatest teaser of my mind is the US dollar. On the big drop of 7 January and today the US Dollar dropped WITH stocks, down a huge 0.99% the day stocks dropped 2.32%. Although it’s only one day, and one day doth not a spring make, it doesn’t seem logical for stocks to fall sharply without the dollar rising at least some. Why? Because people rushing out of stocks get dollars, and they want to buy dollars, usually as US treasuries. So I can look at the 10 year treasury yield and see it gapped down today, which means bonds rose strongly. But why would the dollar fall, even a tiny 14 basis points (0.14%) to 99? Could so many foreigners be selling stocks and converting dollars to other currencies? That doesn’t seem quite the answer. The dollar is not catching the safe haven bid, while the yen rose 0.94% to 85.47¢ per 100¢. Even the euro rose 0.47%, to 1.0907, breaking out ot the upside of its even-sided triangle. Right, and upside breakout for the permanently flagging euro. Somethin’ ain’t right.

    Y’all enjoy your weekend.

    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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