• Has the Silver and Gold Price Bull Market Ended?


    Gold Price Close Today : 1,364.90
    Gold Price Close 10-May-13 : 1,436.80
    Change : -71.90 or -5.0%

    Silver Price Close Today : 22.339
    Silver Price Close 10-May-13 : 23.632
    Change : -1.293 or -5.5%

    Gold Silver Ratio Today : 61.099
    Gold Silver Ratio 10-May-13 : 60.799
    Change : 0.30 or 0.5%

    Silver Gold Ratio : 0.01637
    Silver Gold Ratio 10-May-13 : 0.01645
    Change : -0.00008 or -0.5%

    Dow in Gold Dollars : $ 232.55
    Dow in Gold Dollars 10-May-13 : $ 217.52
    Change : $15.04 or 6.9%

    Dow in Gold Ounces : 11.250
    Dow in Gold Ounces 10-May-13 : 10.522
    Change : 0.73 or 6.9%

    Dow in Silver Ounces : 687.35
    Dow in Silver Ounces 10-May-13 : 639.75
    Change : 47.61 or 7.4%

    Dow Industrial : 15,354.79
    Dow Industrial 10-May-13 : 15,118.49
    Change : 236.30 or 1.6%

    S&P 500 : 1,658.18
    S&P 500 10-May-13 : 1,633.70
    Change : 24.48 or 1.5%

    US Dollar Index : 84.279
    US Dollar Index 10-May-13 : 83.170
    Change : 1.109 or 1.3%

    Platinum Price Close Today : 1,468.00
    Platinum Price Close 10-May-13 : 1,486.00
    Change : -18.00 or -1.2%

    Palladium Price Close Today : 739.50
    Palladium Price Close 10-May-13 : 704.60
    Change : 34.90 or 5.0%

    Silver and GOLD PRICES were humiliated again today. Silver dipped 30.4 cents to 2233.9c. Gold dove $22.20 to $1,364.90. No sign yet of turning round.

    However, silver’s lows yesterday and today ran about 2206c (different charts give different figures). That’s enough to call it a double bottom with the 2200c low on 15 April, but not enough to say it won’t drop lower. It will have to show that next week.

    Gold’s weakness today and a new low for the move at $1,358.39 argue it will drop on down to $1,322, the previous low. Can gold prices go lower? Yes. It can drop to $1,250. Next week will tell.

    About the only bright spot for silver and gold prices is the GOLD/SILVER RATIO at 61.099. It doesn’t seem to want to climb, which would signal lower prices for the metals. But it ain’t too decisive, either.

    Question everybody keeps asking me: Has the SILVER and GOLD PRICE bull market ended? Answer. NO! Inflation, the primary driver of monetary demand which drives silver and gold bull markets, is stronger than ever in the hands of hapless, feckless central bankers. As long as that cause remains, the effect, higher silver and gold prices, will resume. Our Masters are busily trying to con y’all out of your silver and gold, and y’all know you can trust ’em. I’m from the government, and I’m here to help you.

    Back when country music was still country and still music, an obscure artist named Stonewall Jackson in 1959 penned this lines in the song “Waterloo:

    Waterloo, Waterloo

    Where will you meet your Waterloo?

    Every puppy has its day

    Everybody has to pay

    Everybody has to meet his Waterloo.

    As stocks ground higher and ever higher to new all-time highs for the fourth week in a row and silver and gold continued to be slugged and kicked and the US dollar, of all scrofulous currencies, broke out upside, my mind kept returning to those lines: “Every puppy has his day.” I reckon the central bankers are having theirs right now, but one day “Everybody has to meet his Waterloo.” Meanwhile, the media are trying to convince us, in the words of a friend I heard today, that water runs uphill. I’m such a durned ol’ fashioned, natural born fool that I just can’t swallow that. Ain’t no problem figuring out why I’m not president, is there?

    It won’t overload your credulity, I suspect, to note that stocks have risen further than I thought possible. When a market keeps edging higher like this, you just have to step out of its way. Both the Dow and S&P500 have thrown-over their resistance lines, built rising wedges, and gotten more overbought than doobies at a rock festival, but they keep going (and maybe for the same sort of reason). Anyhow, they are floating on a wave of newly created money from the Fed, not economic reality. At some point that cobweb breaks, but I can’t predict when. I just don’t believe in Zimbabwe-nomics, the doctrine that you can inflate your way to prosperity.

    Hack, hack! Now that I’ve coughed that bone up out of my throat, let’s proceed.

    Dow today mounted on buzzard’s wings and floated up 121.57 or 0.8%. S&P500 with a vulture’s grace rose 15.64 (0.95%) to 1,658.18. Stupor mundi, or stupid mundi, one.

    Dow/Gold today reached a new high at 11.25 oz. (G$232.55 gold dollars), up 2.4% Dow in Silver vaulted 14.6 oz. (2.2%) to a new high at 687.35 oz. Those higher prices sent me scurrying back to the charts trying to make sense of it. Looking back at the Dow in Gold’s fall from it’s last peak in 2007 at 21.06 oz., today’s price doesn’t quite reach a 38.2% correction. Today’s close left the Dow/Gold barely above its long term (14 year) downtrend line. Right, I’m chewing my nails, too, wondering when reality will kick in.

    I reckon with the Yen losing 25% of its value against the dollar in nine months that yen-holders would be looking around for someplace else to stash their cash, like US dollars. And with the euro facing a new crisis every fortnight and political paralysis, from that vantage point the dollar might look a little less scabby, too. Proving it has reached escape orbit speed, the dollar today mounted 53.4 basis points to 84.279, up 0.69%. It’s top trend line points to 86 in about three weeks unless it stumbles. Above that stands only 89.

    The Nice Government Men in Japan are obliging the dollar by sinking to ever new lows, a new one today at 96.86, down 0.95%. And somebody pointed out something to me in the euro today I hadn’t noticed before, a head and shoulders with a neckline around $1.2800. Euro closed today down 0.33% to $1.2839. Once it breaks that neckline it will drop quickly to $1.2600, maybe $1.2000.

    On 17 May 1792 the New York Stock Exchange was founded at 70 Wall Street by 24 brokers who had just been released from prison.

    Y’all are always very kind and encouraging to me, so I’m going to ask a little favor. I am facing a knotty problem, one that at times seems completely un-riddleable. I would deeply appreciate your prayers, that God would grant me wisdom and courage and strength. That’s right, I am not made of steel. In fact, patches of rust are showing up and I would deeply appreciate y’all help.

    Y’all enjoy your weekend!

    Argentum et aurum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger
    10:00am-5:00pm CST, Monday-Friday

    © 2013, 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 $195.66; stocks’ primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or 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. No, I don’t.

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