• Silver and Gold Prices Took a Mighty Hit Today


      24-Mar-16 1-Apr-16 Change % Change
    Silver Price, cents/oz. 1,519.10 1,504.20 -14.90 -1.0
    Gold Price, dollars/oz. 1,221.60 1,222.20 0.60 0.0
    Gold/silver ratio 80.416 81.252 0.836 1.0
    Silver/gold ratio 0.0124 0.0123 -0.0001 -1.0
    Dow in Gold Dollars (DIG$) 296.40 300.94 4.54 1.5
    Dow in gold ounces 14.34 14.56 0.22 1.5
    Dow in Silver ounces 1,153.03 1,182.87 29.84 2.6
    Dow Industrials 17,515.73 17,792.75 277.02 1.6
    S&P500 2,035.94 2,072.78 36.84 1.8
    US dollar index 96.17 94.62 -1.55 -1.6
    Platinum 952.40 953.60 1.20 0.1
    Palladium 572.50 561.80 -10.70 -1.9

    Before we talk about this week’s results, let us ponder results for the First Quarter 2016. Gold rose 16.4%, it’s greatest quarterly gain since 1986. Silver added 12.2%, Platinum 9.5%, & Palladium 0.4%. Dow Industrials soared 1.5%, S&P500 0.8%, Dow transports 5.8%, Wilshire 5000 0.3%. Losers were the Russell 2000, down 1.9%, the Nasdaq Composite, down 2.7%, and the Nasdaq 100, down 2.4%. Stock indices outside the US did much worse: Euro Stoxx600, down 7.7%, MSCI World, down 2.7%, Shanghai, down 15.1%, and the Nikkei 225 lower by 12%. Since 2016 opened the US dollar index has lost 4.1%. 
    THIS WEEK. Silver and Gold Prices took a mighty hit today, but finished the week not much changed. Stocks profited from Mother Janet Yellen’s spell. Dow grabbed 1.6%, S&P500 1.8%, but the same spell knocked the US dollar index into a trance, down 1.6%. Say, that’s coincidental: Dow rose 1.6%, same amount the US dollar index fell. I wonder if stocks are just discounting the dollar’s loss. Say, y’all don’t think Mother Yellen would do something like that, do you? I mean, pick the pockets of 350 million Americans merely to line the pockets on Wall Street. Naaah. 
    If I let myself dwell on the colossal corruption in this country, I’d have to lie down and die. Let’s think about something else, or we’ll let those rotten midgets keep us from all accomplishment & joy. They ain’t that important. 
    TODAY stocks rallied. Dow reached the level of 16 December (roughly), rising 107.66 (.61%) to 17,792.75. S&P500 rose 13.04 (0.63%) to 2,072.78. The partiers at Mother Yellen’s ball just ignored that clock striking twelve when Mother Yellen re-filled the punchbowl. With toadstool juice. 
    Be patient. Stocks have about one more week to run before they step into a manhole. 
    Here’s a chart for the Dow in Gold, http://schrts.co/8Sv0tc and the Dow in Silver, http://schrts.co/ohwLZP 
    Dow in Gold acts right now as if it will at least reach the 50% correction of the December – February fall, namely, 14.71 oz. At most it might reach the 200 DMA at 15.07 oz. 
    Dow in Silver, always more volatile, has passed through it 200 DMA (1,150.68). It may reach a 75% correction of the foregoing fall, i.e., about 1,206.72 oz. 
    Whatever happens, it should happen in a week, perhaps two. 
    US dollar index stirred a measly 4 basis points today, up to 94.62, shameful for a currency that claims to be first world. Today it upbounced off the downtrend line from the March 2015 high. Penetrating that would be bad juju for the dollar index. Here’s a picture, http://schrts.co/jjrq5s 
    Recall the big picture. Since March 2015 the dollar index has been rangebound between 100 and 92.50. If it breaks above 100, it will launch another rally. If it falls through 92.50, no rally, no future, except more shame and disgrace and sorrow for US dollar holders. Either way, the dollar’s course will strongly bear on metals. 
    Euro rose 0.1% to $1.1393. It is also rangebound, $1.0550 to $1.1500. Current rally hasn’t even been able to reach the top boundary yet. Yen jumped over its 20 DMA and rose 0.84% today to 89.58. Why anybody would buy Yen remains a deep mystery to me, since Japan will be declared one gigantic old folks’ home in a few years, and the government has a 250% debt to GDP ratio. 
    Inflation markets have crumpled in the last seven days. Oil fell another 3.9% today to $36.63/bbl (WTIC). Copper has fallen from its $2.32 March high to $2.17 today. CRB commodity index gapped down today and closed 1.46% lower. ‘Twill be informative to see how far they correct, that is, whether the bottoms in February will hold. 
    Silver & gold cleared up my confusion from yesterday — or did they? 
    Silver tanked 41.8¢ (2.7%) to close Comex at 1504.2¢. Gold tumbled $12.00 (1%) to $1,222.20. 
    Clear as air, right? Nope, not clear. Look at the silver chart, http://schrts.co/zsmR7J 
    Silver broke that green uptrend line I’ve been talking about the last few days, punched through the 200 DMA (1491¢) like General Forrest punching through yankee cavalry, but then it turned right around and climbed above that 200 DMA. Fell as far as 1478¢, right close to my 1460c target, and already a 50% correction. I’m looking over my shoulder at the calendar now, because this correction shouldn’t last longer than a week, maybe two.
    Has silver fallen far enough? I don’t know, but I do know that any price lower than 1500¢ attracts buyers like free baloney sandwiches attract hoboes. That argues silver won’t fall much further. 
    Here’s more smoke over the picture: gold fell off a cliff, from $1,236.20 to $1,209.90, then picked itself up & clawed its way back above $1,220. This is the last in a string of successful defenses of $1,220. Here’s the chart,http://schrts.co/mmO0be
    Today’s fall also appears to have occurred on very low volume. And it never broke the uptrend line from the January low. Coincidentally, that uptrend line is following the 50 DMA (now $1,208.73), a frequent target for bull market corrections.
    So ’tain’t clear atall. Silver broke but gold didn’t, & silver scrambled back over 1500¢. It’s getting to where I’m more nervous about waiting to buy than I am fearful of bigger falls. 
    Almost everybody who calls asks me about Susan’s eye, and I deeply appreciate y’all’s concern. She tells me it is almost completely healed and only occasionally pains her. I thank y’all again for your prayers. 

    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.  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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