• Gold Price Bounced Smartly Up Off the Low

    18-Sep-14 Price Change % Change
    Gold Price, $/oz 1,225.70 -8.70 -0.70%
    Silver Price, $/oz 18.45 -0.21 -1.13%
    Gold/Silver Ratio 66.426 0.285 0.43%
    Silver/Gold Ratio 0.0151 -0.0001 -0.43%
    Platinum Price 1,351.00 -12.70 -0.93%
    Palladium Price 831.40 -7.40 -0.88%
    S&P 500 2,011.36 9.79 0.49%
    Dow 17,265.99 109.14 0.64%
    Dow in GOLD $s 291.20 3.88 1.35%
    Dow in GOLD oz 14.09 0.19 1.35%
    Dow in SILVER oz 935.72 16.43 1.79%
    US Dollar Index 84.39 -0.36 -0.42%

    3 Day Gold Price Chart
    30 Day Gold Price Chart
    5 Year Gold Price Chart
    3 Day Silver Price Chart
    30 Day Silver Price Chart
    5 Year Silver Price Chart

    The GOLD PRICE closed Comex $8.70 cheaper at $1,225.70. Silver closed Comex 21.1 cents lighter at $18.452.

    The GOLD PRICE three day chart shows a bottom yesterday about $1,217 and another today about $1,216. Today the gold price bounced smartly up off that low at 9:30 to its high at noon. Traded above $1,225 rest of the day.

    Since human beings are social animals on a par with lemmings, it’s monumentally tough to run contrary to the herd. However, it’s precisely moments like this when most everybody is dead-dog sure things will continue forever that they turn and go the other way. Wouldn’t surprise me if gold did that tomorrow.

    The SILVER PRICE plunge didn’t come until today, when it hit a $18.30 low. But that low was a clean V-bottom.

    Both silver and gold prices are powerfully oversold, but have to snap back hard before anybody but me will pay attention. Silver needs to climb above $18.75 and gold over $1,250. Otherwise the erosion will continue.

    Call me crazy, but I’ll still take gold and silver with 6,000 years to the fiat US dollar’s four decades.

    Continuing our lesson in not panicking today, the markets beat us with a small stick. Stocks rose, still drunk on the FOMC’s non-statement, while the dollar index backed off and silver and gold fell.

    I’m gonna tell y’all one thing: the wonder workers and magicians at the Fed have NOT repealed the law of gravity,. This will end badly for the US dollar and for stocks. The US dollar has been a completely unbacked fiat currency since August 1971; gold and silver have been money since memory runneth not to the contrary. Those who bet against history or gravity lose.


    Stocks made new highs today. Dow’s last closing high was 17,138 on 16 July. Today it gained 109.14 (0.64%) to 17,265.99. S&P500 also made a new high at 2,011.36, up 9.79 (0.49%). One thing catches my eye. Back in June the S&P500 began trading in a channel, fell out of the channel in July, then traded back up and barely into the channel as September opened, bell down again, and today has traded right up snug against that line, but not above it. Look at it here:

    Dow Jones/ Gold Price

    Dow in gold rose 0.49% to 14.08 oz (G$291.06 gold dollars) a new high for the move that began just 3 years ago in August 2011, and higher than the December 2013 high at 13.80 oz (G$285.27). Chart:

    Dow Jones/ Silver Price

    Dow in silver crashed into the overhead resistance line and rose 0.77% to close at 932.29 oz (S$1,205.38). There ’tis — must turn around from here or rise much higher. Chart:

    US dollar index gave back 36 of the 53 basis points it had gained yesterday, closing at 84.39. That changes nothing, initiates no corrections. Must fall below 84.20 to talk about such things. Remains painfully overbought.

    Euro rose 0.43% to $1.2919. Yen fell another 0.33% after gapping down. That looks like an exhaustion gap. Closed at 92c/Y100.

    10 Year Treasury note yield rose 1.12% to 2.629% and nearly touched its 200 DMA above at 2.648%. Odd. Markets really think that Janet Yellum can simply begin raising rates when the Zero Interest Rate Policy is the linchpin of all wickedness the Fed has worked since 2008? Or, maybe they’re just computer jockeys following momentum. I’m too big a hick to know the difference.

    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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