• Silver and Gold Price Rally Had Begun with Metals Poised for a Great Leap Up

    21-Jan-16 Price Change % Change
    Gold Price, $/oz 1,099.10 -8.00 -0.72%
    Silver Price, $/oz 14.08 -0.06 -0.45%
    Gold/Silver Ratio 78.044 -0.212 -0.27%
    Silver/Gold Ratio 0.0128 0.0000 0.27%
    Platinum Price 818.10 0.20 0.02%
    Palladium Price 497.75 10.00 2.05%
    S&P 500 1,868.99 9.66 0.52%
    Dow 15,882.68 115.94 0.74%
    Dow in GOLD $s 298.72 4.32 1.47%
    Dow in GOLD oz 14.45 0.21 1.47%
    Dow in SILVER oz 1,127.79 13.30 1.19%
    US Dollar Index 99.06 -0.11 -0.11%

    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 fell $8.00 to a cosmetic Comex close at $1,099.10, below $1,100. Good shootin’, Nice Government Men. In the aftermarket the GOLD PRICE eased back to yesterday’s levels at $1,102.10. The SILVER PRICE lost 6.4¢ go $14.083, above the $14.00 mark at least.

    Both silver and gold prices are poised and coiling for a great leap up. Gold’s daily chart seems to say that it has begun that rally and today was only a usual correction of yesterday’s big ($17.20) rise. Keep watching $14.40 silver and $1,113 gold price. When they break through that fence, they will run for the woods.

    Here’s a small request for y’all. On Tuesday, 26 January, my wife Susan will have eye surgery to remove the floaters in her vitreous humor. I would deeply appreciate your prayers on her behalf for a successful surgery, and I know she would, too.

    I see where Jamie Dimon, JPMorgan CEO, got a 35% pay raise in 2015, to $27 million from $20 million. Of course I risk being called a communist, although I am probably the only human being in North America who emphatically is not a communist or socialist, but given reality, I must question what sort of genius it would take to add $20 million, much less, $27 million, in value to an enterprise. After all, if JPM pays Jamie $27 million, business logic says they expect to leverage that $27 million into some larger income for JPM.

    Maybe he could boost their income that much, maybe he is such a business genius or maybe he has so many Washington contacts that he’s worth that.

    But I doubt it, all the way from Tennessee. For some reason, the words “crony capitalism” keep popping to mind, and “well-positioned parasites.” Don’t bother writing me smoking emails about free markets and libertarianism, etc., because this has absolutely NOTHING to do with any of that. If you’re that naïve, you ought to be investing in Perpetual Motion Machines, Ltd.

    Today was a reaction day. Stocks rose a bit, but before the first hour’s trading passed had gone nose underwater again. Buyers came in and drove the Dow to a high of 16,039 about noon. But the Dow must have et somethin’ didn’t agree with it, cause it started puking up points and never stopped till 2:45, when it stopped falling and eased upward. Ended gaining 115.94 (0.74%) to 15,882.68. S&P500 gained 9.66 (0.52%). Stocks may be ready for a leetle countertrend rally, as they are right oversold, but today didn’t convince me of that. If they do rally, it will be brief. MUCH more plunging lies in the future. Think of yourself looking into a deep well, trying to see your face in the water hundreds of feet below. Now think of yourself toppling over the top of the well wall and plummeting down the well shaft. Something like that.

    US dollar index blew up today. It rose to 99.95, a new high for the move, on sudden buying around the open. Must have looked around and wondered what it was doing that high up, because it fell sharply, then more, then more through the day to close down 11 basis points at 99.06. A break to a new high intraday with a lower close for the day is puking sick action, and the first half of a key reversal. Lower close next two days sinks the dollar.

    Euro took a notion to fall today, even though the dollar index fell. Euro fell 0.9% to $1.0879 and the bottom boundary of that even sided triangle — also below its 20 and 50 day moving averages. Next step is a breach of that boundary and further fall. Nor did the yen rise, no, it fell 0.65% to 84.96 cents per 100 yen. Looks like folks generally were fleeing fiat currencies today, but into what? Washing machines? Wasn’t gold.

    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.

    Write a comment