• Gold Price Made a V-Bottom Overnight at $1258

    29-Aug-14 5-Sep-14 Change % Change
    Gold Price, $/oz. 1,285.80 1,265.80 -20.00 -1.6
    Silver Price, $/oz. 19.398 19.082 0.316 -1.6
    Gold/Silver Ratio 66.285 66.335 0.050 0.1
    Silver/gold ratio 0.0151 0.0151 -0.00 -0.1
    Dow in Gold $ (DIG$) 274.89 279.87 4.98 1.8
    Dow in gold ounces 13.30 13.54 0.24 1.8
    Dow in Silver ounces 881.45 898.09 16.64 1.9
    Dow Industrials 17,098.45 17,137.36 38.91 0.2
    S&P500 2,003.37 2,006.81 3.44 0.2
    US dollar index 82.72 83.79 1.07 1.3
    Platinum Price 1,426.70 1,412.50 -14.20 -1.0
    Palladium Price 908.65 891.00 -17.65 -1.9

    3 Day Gold Price Chart
    30 Day Gold Price Chart
    3 Day Silver Price Chart
    30 Day Silver Price Chart

    ‘Twas not a kind week for silver or GOLD PRICES, which both lost 1.6%. Nor did platinum or palladium fare better. The scrofulous US dollar index rampaged after the European Central Bank’s surprise party. Stocks, in spite of the S&P500’s new highs, barely held their own.

    The GOLD PRICE grew today by — are y’all ready for this? — seventy cents to $1,265.80. Silver took out her tweezers and plucked 1.8 cents from somewhere, rising to 1908.2c.

    A five day chart shows that gold yesterday made a V-bottom overnight at $1,258. Good, but gold must hold above $1,262 to verify that.

    The SILVER PRICE five day chart resembles gold’s, with a V-bottom yesterday. Must hold above 1900c.

    Considering the ECB’s surprise party this week and the dollar’s rise, silver and gold held up pretty well. In spite of dollar strength, they held on. That’s the best thing I can say for them right now.

    Wait, Moneychanger! Are you giving up on metals? Not on your life, but this will play out until a docile, gullible catches on to the Federal Reserve’s printing scam. Or until yet another financial crisis blows up.

    Nothing has changed. Nothing has been reformed. No heads have rolled. If the cause (inflation) hasn’t changed, then the result (the gold and silver bull market) won’t change, either. Be patient, be patient. Now is the time to buy, not jump overboard.

    The week’s big news was the European Central Bank’s announcement they will further obliterate their currency with inflation. ECB lowered its rediscount interest rate from 0.15% to 0.05%, began charging banks 0.2% to hold reserves, and announced a quantitative easing program of US$691 billion over three years (US$230 bn/year or US$20 bn a month).

    That announcement threw the euro over the cliff and sent people jumping onto the US dollar, the only horse in the corral not lame in two feet. Dollar index gained 1.12% while the euro lost 1.59%. Today the Dollar index closed off one basis point at 83.79, and that probably marks the move’s limit. Euro rose slightly, 0.9%, to $1.2951. Yen rose 0.21% to 95.17. The dollar is so overbought, and the yen and euro so oversold, that they need at least a relief correction to work that off.

    S&P500 today made a new high at 2006.68, up 9.16 or 0.46%. Dow added 67.75 (0.4%) to close at 17,137.36, not quite equal to 16 July’s high at 17,138.20.

    The S&P500 had posted a key reversal on Wednesday and Thursday, but cancelled that today with a higher close. It still appears to be rolling over. Dow, also, looks gravity bound. A close below 17,000 or 1990 would drag down stocks like wearing concrete overshoes swimming off Long Island.

    Throw your eye on the Dow in Gold chart on the right:

    The Dow in Gold made a high at December’s end at 13.80 oz (G$285.27 gold dollars). It dropped into March to 11.62 ox ($240.21) , then climbed to an early June high at 13.53 oz (G$279.69). From that June high it fell into early August to 12.45 oz (G$257.36). From there it climbed again to 13.53 oz today. Question here is, Can it climb higher or will resistance here stop the DiGs? Indicators whisper that it is topping.

    Now go look at the chart for the Dow in Silver on the left:

    Dow in silver painted a rising wedge from June 2013 through June 2014 when it topped at 892.99 oz (S$1,154.57 silver dollars). In June the DiS dropped out of that rising wedge, then predictably dropped to 787.85 oz (S$1,108.63), below the 200 DMA. It rallied from mid-July to 894.40 oz (S$1,156.40) yesterday, a new high.

    Both these charts appear to be forming double tops. Dow in silver could climb as high as 912 oz (S$1,179.15). Gold must not rise higher than 2% above the 13.80 top or 14.08.

    Why am I wasting your time with this? Because these indicators must turn down before silver and gold can turn up. Until they turn down, the Federal Reserve’s paper money scam is working.

    Y’all enjoy your weekend!

    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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