• Gold Price Shot Up on Opening and Never Looked Back Closing up $17.20 to $1.107.10

    20-Jan-16 Price Change % Change
    Gold Price, $/oz 1,107.10 17.20 1.58%
    Silver Price, $/oz 14.15 0.04 0.26%
    Gold/Silver Ratio 78.257 1.014 1.31%
    Silver/Gold Ratio 0.0128 -0.0002 -1.30%
    Platinum Price 817.90 -10.80 -1.30%
    Palladium Price 487.75 -9.05 -1.82%
    S&P 500 1,859.37 -21.96 -1.17%
    Dow 15,766.95 -249.07 -1.56%
    Dow in GOLD $s 294.40 -9.37 -3.08%
    Dow in GOLD oz 14.24 -0.45 -3.08%
    Dow in SILVER oz 1,114.51 -20.57 -1.81%
    US Dollar Index 99.18 -0.01 -0.01%

    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 shot up about opening (8:30 Eastern) and never looked back. Shot up again about 1:00 p.m. High reached $1,109.90, and Comex closed $17.20 (1.6%) higher at $1,107.10. The SILVER PRICE stalled at $14.23, then fell back to close at $14.147, only 3.7¢ (0.26%) higher.

    Silver and GOLD PRICES are moving in the right direction, but must break through that crust of resistance at $1,113 and $14.40. Silver at last closed above its 20 ($14.02) and 50 ($14.10) day moving averages. $14.25 has several times blocked its progress, but stocks are stoking a powerful head of steam under both the silver and gold price. Today or tomorrow the price of gold should breach that resistance, and that will pull silver along.

    Did I mention it’s probably time to buy silver and gold? Or you can wait for breakouts.

    Stock markets are getting ugly, so let’s shoot straight: the only way to stay out of a bar fight is to leave the bar before the fight begins. Given the way things unfolded in Greece lately, if another crisis erupts you will likely have trouble getting any money larger than chicken feed out of your bank account. Everybody ought always have sufficient cash to cover three months’ cash needs for your family. If you don’t, get it. Ditto all those other supplies preppers wax loud about. If you don’t have ’em, get ’em. I don’t mention getting physical silver and gold or firearms, since that is already obvious to y’all.

    You can play the short side of stocks with bear ETFs or options. If you understand such things, I remind you that you always make more money short than long, because markets fall faster than they rise.

    As of today, since the first of the year the Dow has fallen 9.5%, the S&P500 9%, the Dow Transports 11.8%, Euro Stoxx600 11.9%, DJ World index 9%, Shanghai 15.9%, and the Nikkei 13.7%. For the year the Dow in silver is down 11.9% and the Dow in gold down 13.3% (meaning stocks have lost that much against metals.)

    Most eye catching is the $BKX bank stock index, down 15% on the year. The Gold/BKX spread has gained 22.7%, i.e., gold has gained that much on the BKX. This offers the most alarming view of the stock market rout, since people are piling out of bank stocks and into gold faster even than stocks are falling, and that flight has only barely begun.

    According to the New York Times, that prints all the news that fits, global stock markets have lost $3.6 trillion since 2016 dawned.

    By the way, in the New York Times today appeared another article, 6 Tips for Investors When the Stock Market Tumbles. Y’all will be surprised: Tip No. 1, stay in the market. Tip # 2, stay in the market. Tip #3, stay in the market. Tip # 4, stay in the market. Tip #5, stay in the market. Tip # 6, stay in the market.

    Y’all will hear this same siren song from every guru on every side, but like Ulysses, you’d better tie yourself to the mast and stop your ears with beeswax, because after 6-1/2 years of an money-creation-based rally and unspeakable overvaluation, the sirens on Stock Island do not have your best interests at heart. For them, you are what’s for supper.

    But don’t listen to me. I’m only a nat’ral born durn fool from Tennessee, and I can hardly spell duhrivvatuv.

    Stocks today had one of their worst days of 2016. At one point the Dow had peeled off 585 points (3.5%), against its worst previous loss on 7 January of 392.41. This selling set off with the opening bell, and persisted until the low about 1:00 scared the NGM out of their hiding places behind the baseboards and sent them scurrying to buy. Best they could do was trim the loss to 249.07 (down 1.56%) for the day, and a close at 15,766.95. S&P500 (but not the Dow) closed below its August low (1,867). Down 21.96 (1.17%) to 1,859.37. Oooooo. Breaking that August low is like your horse breaking a leg in the Sahara Desert — when you’re alone.

    Dow in Gold

    Dow in gold plunged 3.24% to 14.25 oz, a new low for the move and challenging the August/September lows. A close below the August low at 13.74 oz will be the last confirmation.

    Dow in Silver

    Dow in silver fell 2.5% to $1,113.86 ounces. A close below 1,180 oz breaks it down through the bottom of the 12 month trading range. A fall through 1,050 oz breaks the uptrend from the 2011 [sic] low.

    US dollar index behaveth curioser and curioser. With stocks tanking you’d expect the dollar to rally, but you’d expect wrong. At days end it was only one basis point lower than yesterday, but that don’t near about tell the whole story. The low came at 98.68, punching through the 50 and 20 day moving averages, but it managed to climb back. Top since last week has been 99.30, so if the dollar can’t better that, or continues to fall, there are worse things in the closet than even I suspect.

    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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