• Silver and Gold Prices Will Outrun Stocks Mercilessly, Sell Stocks and Buy Metals

    8-Feb-16 Price Change % Change
    Gold Price, $/oz 1,197.90 40.10 3.46%
    Silver Price, $/oz 15.42 0.65 4.42%
    Gold/Silver Ratio 77.705 -0.716 -0.91%
    Silver/Gold Ratio 0.0129 0.0001 0.92%
    Platinum Price 927.00 25.60 2.84%
    Palladium Price 519.05 0.00 0.00%
    S&P 500 1,853.44 -26.61 -1.42%
    Dow 16,027.05 -177.92 -1.10%
    Dow in GOLD $s 276.57 -12.76 -4.41%
    Dow in GOLD oz 13.38 -0.62 -4.41%
    Dow in SILVER oz 1,039.64 -57.96 -5.28%
    US Dollar Index 96.74 -0.31 -0.32%

    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 wave, swelled, billowed, and rolled over rocks and shore, up $40.10 (3.5%) to $1,197.90. SILVER staged a little tidal wave of its own, up 65.2¢ (4.4%) to $15.416.

    About 11:00 eastern time the PRICE OF GOLD leapt from $1,182 to $1,195. Straight up. Silver mirrored that jump. Probably they hit stop loss orders clustered at $1,182.50 and $15.10, but whatever the reason, both were unstoppable. In the aftermarket, the gold price backed up to $1,190.30 and silver to $15.32

    Today’s move makes more likely the upside-down head and shoulders forecast I showed y’all on Friday, and paints the neckline about $1,200. In correcting back from the neckline, that shoulder could retrace to $1,140, $1,113, or even $1,090. If so, will scare the starch out of all but the most convinced gold investors, and offer us one last buying opportunity.

    Gold Price

    However, the gold price might make one more surge to lift that neckline. It might punch right through $1,200 and keep climbing to $1,230. Given the parabolic rise of the last few days, it will correct soon, but that rocketing volume must break first.

    Silver closed above its 200 DMA ($15.12) today, and ran into resistance about $15.40. If it balketh not here, ’twill hit $16.40

    Y’all don’t blame me if you’re missing out. I’ve been telling y’all to buy.

    Stocks were smashed today, and bank stocks among the worst. Got a text this morning from a friend, “Stocks down 400, gold 1189, silver 15.37.” Woke me up.

    Most of the day the Dow was underwater 250 or more, at its lowest, about 2:30 p.m., down at 15,803.55 (-2.5%). Yet it found friends about 2:30 who bought it till it threw a leg over the morale buster, 16,000. Closed down only 177.92 (1.1%) at 16,027.05. S&P500 lost 26.61 (1.42%) to 1,853.44, a portentous new low close for the move.

    Dow’s low close in the August crash-let was 15,666. Must hold line is 15,960. Dow is crumbling slower than the S&P500, which today posted a new low close, and a close below the August low. Shucks! Did I forget to tell y’all that volume is rising? That hints that stocks have only begun to drop.

    Dow in Gold
    Dow in Silver

    TODAY WAS THE DAY. Yes, today the Dow in Gold punched through the uptrend line from the September 2011 low! DiG closed at 13.38 (G$276.59 gold dollars). The trend of Stocks against metals has again turned down, down, down. Gentleman than I am, I won’t remind y’all that from 1999’s 44 oz high to 2011’s 5.70 oz low stocks lost 87% against gold. Nor will I forecast that before gold reaches its peak that one to two ounces of gold will buy the whole Dow, another 88% loss.

    BEHOLD, ALSO THE DOW IN SILVER. Closed at 1,045.81 (S$1,352.16 silver dollars). Has now broken down after double tops July – December, smashed the uptrend line from August 2013, smashed the bottom channel boundary, and today punctured the uptrend from the 2011 low. Low will come at 32 oz, about 97% lower than here.

    Bottom rail’s on the top now. Primary trend has turned, Silver and gold prices will outrun stocks mercilessly. Sell stocks and buy metals.

    US dollar index sank again below its 200 day moving average (96.89), perching at 96.74, down 31 basis points (0.32%). A break of 95.50 confirms dollar is trending much further down. Euro rose 0.33% to $1.1196. Broken out into a rally above the 200 DMA. Yen surged 0.86% to 86.33, highest level since January 2015. Now at very top of range established after Abe’s gutting in 2015. Nice government men must be chewing their kimono sleeves.

    Stock dive has investors so scared they piled into US treasury securities, taking the 10 year treasury yield to 1.735%, lowest since 30 January 2015. Price matches that January high and from here must surge higher or fall away. No indecision allowed here. Junk bonds (See HYG) gapped down today. Bad juju. Gigantic boil in credit and banks is festering, swelling, ready to burst.

    Bank stocks: Bank Stocks index ($BKX) fell to a new low for the decline that began in July, its lowest level since June 2013. I remind y’all that the BKX reflects confidence in the financial and monetary system. Rising BKX equals rising confidence, falling BKX falling confidence. But better to illustrate the shift of confidence from financial assets to gold is the Gold/BKX spread. Today it gapped out of a range that had chained it since 2013, to 20.01. Money is pouring from bank stocks into gold, and the shift has only begun. Chart’s at http://schrts.co/HlgqYM

    I know my needle’s stuck in this groove, but please keep praying for my wife Susan and her eye. And thank you.

    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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