• The Gold Price Eased Off One Dollar to Close $1,294.60 on the Comex

    13-May-14 Price Change % Change
    Gold Price, $/oz 1,294.60 -1.00 -0.08%
    Silver Price, $/oz 19.50 0.00 0.02%
    Gold/Silver Ratio 66.376 -0.065 -0.10%
    Silver/Gold Ratio 0.0151 0.0000 0.10%
    Platinum Price 1,454.70 13.80 0.96%
    Palladium Price 817.45 8.55 1.06%
    S&P 500 1,897.45 0.80 0.04%
    Dow 16,715.44 19.97 0.12%
    Dow in GOLD $s 266.91 0.52 0.20%
    Dow in GOLD oz 12.91 0.03 0.20%
    Dow in SILVER oz 857.03 0.85 0.10%
    US Dollar Index 80.19 0.24 0.30%

    The GOLD PRICE eased off one thin paper dollar to $1,294.60 on Comex. Silver emerged victorious with one-quarter cent between its teeth to close at 1950.4c. Silver’s range was a colossal 26 cents.

    Gold ran into selling at its 200 DMA ($1,299.86) but refused to fall lower than $1,289.10. Gold will explode one way or the other soon. What appears to be no interest is more likely balanced force on either side. When one or the other gives way, ’twill move far.

    The SILVER PRICE spent a day inchworming sideways in a tiny range. It remained today above its 20 DMA (1946c), and continues to trade in a narrow range of 1990c to 1900c. Here, too, silver is coiling for a big move one direction or another.

    Because both silver and GOLD PRICES keep edging up and pop back every time they are slammed down, my money says they will break out to the upside, and soon. Complacent investors are missing one of this century’s magnificent buying opportunities.

    Today was about like yesterday, only more so, & my concentration is waning because of the rambling roses and my dear wife.

    Stocks continued to levitate today. Dow and S&P500 both made new highs. Dow rose a tee-tiny 19.97 (0.12%) to 16,715.44 while the S&P500 added an infinitesimal 0.8 (0.04%) to 1,897.45. Meanwhile the Nasdaq Comp, Russell 2000, & Wilshire 5000, nowhere close to all time highs, all fell. Participation is not, as they say, “across the board.”

    This breakout so far does not prove itself as a breakout, and could easily stop here — or the Dow might add another 100 points. Ultimate high will likely be seen this week or next. I make no prediction, I only watch.

    Dow in gold rose marginally, up 0.17% to 12.91 oz (G$266.87 gold dollars). This changeth not the chart. Dow in silver rose 0.03% to 855.14 oz (S$1,105.64 silver dollars), but changed nothing there, either.

    Jumping my bar for confirmation, the US dollar index today leapt 24 basis points (0.30%) to close at 80.19, well above the last high and internal support/resistance. Next barrier is 80.40.

    Weak economic news from Germany and rumors the German Bundesbank (the former German central bank) would support the ECB in easing sent the euro tanking 0.4% to $1.3689, gapping down again. Methods mentioned to further inflate the euro were paying banks negative interest rates on reserves (in other words, the ECB charging banks to hold reserves) & massively buying packages of bank loans. We suspicious, non-bank yokels recognize this as a method to move rotten loans off the banks’ books & onto the ECB’s books.

    I want y’all to push back a minute, take a deep breath, roll your eyes at the ceiling, and think about these ECB easing measures. These are actually adults (chronologically, at least), talking seriously about performing these loony acts with the money supply of a continent. Nothing but goofs & adolescents in charge. Teenagers with nuclear weapons & car keys.

    Speaking of goofs & adolescents, Little Timmy Geithner has published a book explaining how the 2008 crash was everybody else’s fault & his part as O’Bama’s pretend Treasury Secretary was perfectly executed. Now little Timmy never worked a day in his life (unless you count a high-level government job working), never met a payroll, never ran a bank, but because he had worked for Henry Kissinger & then Bob Rubin & Larry Summers as a Step-and-Fetch-It in the Treasury Department, was appointed head of the NY Fed just in time to ignore the Big Banks’ shenanigans that spawned the 2008 global financial crisis. Little Timmy never noticed anything wrong on Wall Street, imagine that! And Little Timmy was responsible for the “Too-Big-To-Jail” policy that ensured none of his cronies got prosecuted for their roles in the frauds that brought on the 2008 crisis.

    To such doafs is entrusted the financial well-being of your family. Ain’t central banks and government economic control jus’ grand?

    I took my wife Susan to her cardiologist at Vanderbilt in Nashville yesterday because after two heart surgeries (2008 & 2012) she still is plagued with atrial fibrillation, a very fast heartbeat in her heart’s upper chambers. Drugs have not solved the problem, so we left yesterday with the verdict that she must either go to the Big Bertha of drugs, amiodarone, or have an ablation. In an ablation they cut the firing fibers in the heart which solves the atrial fibrillation but leaves her dependent on her pacemaker. Better make sure that battery’s good. This morning her cardiologist called to tell her that she had called a pacemaker expert who allowed that reprogramming her present pacemaker might give Susan some relief. That she has performed tomorrow.

    I deeply appreciate your prayers for Susan — please don’t stop yet!

    Aurum et argentum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger

    © 2014, 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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