• We Will Never Again See Gold Prices Below $1,201.50

    10-Jun-16 17-Jun-16 Change % Change
    Silver, cents/oz. 1,731.50 1,740.00 8.50 0.5
    Gold, dollars/oz. 1,273.40 1,292.50 19.10 1.5
    Gold/silver ratio 73.543 74.282 0.738 1.0
    Silver/gold ratio 0.0136 0.0135 -0.0001 -1.0
    Dow in Gold Dollars (DIG$) 290.02 282.69 -7.33 -2.5
    Dow in gold ounces 14.03 13.68 -0.35 -2.5
    Dow in Silver ounces 1,031.78 1,015.81 -15.97 -1.5
    Dow Industrials 17,865.34 17,675.16 -190.18 -1.1
    S&P500 2,096.07 2,071.22 -24.85 -1.2
    US dollar index 94.64 94.17 -0.47 -0.5
    Platinum 993.80 965.70 -28.10 -2.8
    Palladium 547.15 532.65 -14.50 -2.7
    17-Jun-16 Price Change % Change
    Gold, $/oz 1,292.50 -3.60 -0.3
    Silver, $/oz 17.40 -0.19 -1.1
    Gold/Silver Ratio 74.282 -0.199 -0.3
    Silver/Gold Ratio 0.0135 -0.0001 -1.1
    Platinum 65.70 -12.20 -15.7
    Palladium 532.65 -3.20 -0.6
    S&P 500 2,071.22 -6.77 -0.3
    Dow 17,675.16 -57.94 -0.3
    Dow in GOLD $s 282.69 -0.11 -0.0
    Dow in GOLD oz 13.68 -0.01 -0.0
    Dow in SILVER oz 1,015.81 7.91 0.8
    US Dollar Index 94.17 -0.42 -0.4
    Oh, for heaven’s sake! Here’s the truth. I work by myself, no waiting secretary, & I run like a scalded dog. That means things don’t get checked and double checked. So yesterday I sent y’all the wrong link for the Gold Summit. No point in post mortems, I simply erred. So here is the announcement again, with the link corrected. Please forgive my error.. 
    Y’all can follow this link to the Gold Summit, http://bit.ly/1rtAsN5 I tried it and double tried it. It’s right. 
    The Gold Summit offers 20 different interviews with 19 different people, and one nat’ral born durn Tennessee fool among ’em. If you are interested in gold and silver investing, better take a look. You can watch them for free June 16 through June 18, or you can buy and download podcasts. Just so y’all know, if you do buy anything, I receive a small commission. 
    Yesterday markets — dollar, stocks, gold, silver — reversed with crazy days, large ranges, and small gains or losses at the closes. Today they reversed the reversals. All this reflects spooked markets fearful what sort of egg the Brexit vote might lay. Brexit vote happens on 23 June, next Thursday, so we’ll probably be treated to more of this turmoil next week. 
    US dollar index fell 44 basis points (0.44%) today to 94.17. The three day chart makes yesterday look like a freak spike, which gave back the entire gain & resumed the previous trajectory of fall. Another question highlights why this is important: With Brexit looming, why isn’t scared money fleeing into the US Dollar? 
    If it’s not, what does that say about the “strength” of the dollar? Of course, I leave open the likelihood that central banking criminals are colluding to keep the euro from collapsing & the dollar from soaring. 
    Stocks reversed yesterday’s reversal. Dow fell 57.94 (0.33%) to 17,675.16. S&P500 slid 6.77 (0.33%). Bottom line of both days is that stocks couldn’t hold on above their 20 & 50 day moving averages, and haven’t for five days. Momentum is firmly down, & no up & down jiggering for a day or two will change that. 
    The Gold Price backed off $3.60 (0.3%) to $1,292.50 while silver got serious about dropping, down 19.4¢ (1.1%) to 1740¢. 
    What’s happened in gold can’t really be shoehorned into a Key Reversal pattern. It always looks sorry when a market breaks to new highs, then closes lower for the day. But a Key reversal needs at least two days reversal, and preferably three. Here gold dropped yesterday as low at $1,278, but came back and today is trading above $1,290 again. It has conquered that first resistance at $1,287. 
    I keep noticing, out of the corner of my mind, that gold & silver keep surprising everyone to the upside. Surprising even me. This typifies markets at the beginning of a bull run. I am beginning to harden in my opinion that the $1,201.50 low was the bottom of Wave 2, and that gold is now in a frantic Wave 3. Sure, I know I might be wrong, and that will be plain if gold drops below $1,272 or even $1,250. But for now my operating theory is that we will never again see gold prices below $1,201.50. Here’s the gold chart, http://schrts.co/pI1ZgR 
    Blast this Brexit vote! It throws everything out of focus. Gold’s high surge yesterday probably marked the beginning of a correction, UNLESS gold can close higher than $1,308 next week. If you see that, ALL BETS ARE OFF & gold will rocket higher. But y’all haven’t yet seen that. Must see it first. 
    Silver’s five day chart gives an even stronger impression of a market that has peaked and is beginning to correct. Silver would gainsay that by climbing smartly through 1750¢. Fiddling around below 1750¢ is weakness. 
    Gold/Silver ratio jumped up yesterday as if stuck by a hatpin, but plunged today right back below the 20 & 50 DMAs. Forming a rising wedge, which forecasts another fall. Chart’s right here, http://schrts.co/kh9gOy 
    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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