• Gold Price Closed Up $23.90 or 2.1 Percent to $1,185.00, Silver Price Outshone Rising 69.3 cents or 4.64 Percent

    7-Nov-14 14-Nov-14 Change % Change
    Gold Price, $/oz. 1,169.70 1,185.00 15.30 1.3
    Silver Price, $/oz. 15.699 16.31 0.611 3.9
    Gold/Silver Ratio 74.508 72.655 -1.853 -2.5
    Silver/gold ratio 0.0134 0.0138 0.0003 2.6
    Dow in Gold $ (DIG$) 310.58 307.63 -2.95 -0.9
    Dow in gold ounces 15.02 14.88 -0.14 -0.9
    Dow in Silver ounces 1,119.43 1,081.22 -38.21 -3.4
    Dow Industrials 17,573.93 17,634.74 60.81 0.3
    S&P500 2,031.92 2,039.82 7.90 0.4
    US dollar index 87.63 87.58 -0.05 -0.1
    Platinum Price 1,213.30 1,213.60 0.30 0.0
    Palladium Price 772.20 771.00 -1.20 -0.2

    No sooner did I demand it than silver and GOLD PRICES broke out upside, after a frustrating do-nothing week.

    The gold price leapt $23.90 (2.1%) to $1,185.00. Silver outshone, rising 69.3 cents (4.64%) to $16.31. Yesterday I said silver and gold needed to climb through $16.00 and $1,185.00, and they promptly did.

    Believe it or not, in the midst of all this gloom, the gold price has actually risen for the past two weeks. Bottom came at $1,130.40 (intraday) last Friday, 7 November. Today gold acted as if it wanted to drop but caught hold and levitated straight up to close Comex at $1,185 and end the day about $1,190.

    Why is $1,180 such strong resistance? Because for 16 months it formed the stout floor for gold.

    Today the GOLD PRICE touched the 20 DMA ($1,192.83). This only begins a rally. Next gold must climb over $1,200, then $1,225 where it began to fall off. Above that comes the test at the last high, $1,255.60.

    The chart has formed what might turn out to be an upside-down head and shoulders pattern. That means we can expect a rise toward $1,255.6 where the neckline is, then a drop back for a test of $1,180, the bottom of the left shoulder, for a rally from there up through the neckline.

    The SILVER PRICE reached up and nearly touched the 20 DMA at $16.40 (the high was $16.38), and it closed near there. Next week it should jump through the 20 DMA and press on toward $17.82, the last high. Silver’s chart, too, shows a potential upside-down HandS. Silver needs to throw a leg over $17.00 where its waterfall began.

    Momentum indicators have all turned up, so they are confirming this breakout as genuine.

    I bought silver today.

    GOLD/SILVER RATIO dropped to 72.655 today. If you ever want to swap gold for silver near this ratio level, you ought to jump soon.

    Stocks spent the week millimetering higher, for the fourth straight up-week. Dollar finally faltered for a correction today. Platinum and palladium seem to have found bottoms.

    Dow faltered today, losing 18.05 (0.1%) to 17,634.74. S&P500 technically rose, 0.49 or 0.2% to 2,039.82. Disagreement shows confusion, confusion lack of confidence. May go marginally higher next week, but the time bomb is ticking for a slippery slide. (I’m giving y’all two metaphors for the price of one). Cycles point to a peak soon but also gauges of inward weakness are showing. Add to that knocking on the upper boundary line on declining volume. Not a good cocktail.

    Dow in metals plunged. Dow in gold lost 2.11% to end at G$307.39 gold dollars (14.87 oz), falling back below the channel line it had thrown over. Good start.

    Dow in silver dove for the bottom, ending at $1,397.60 silver dollars (1,080.96 oz). Now back within the up channel. Too soon to tell us whether this is a permanent turn.

    US dollar index made the first half of a key reversal with a new intraday high at 88.36, but a lower close for the day. Ended at 87.58, down 25 basis points or 0.28%. A lower close on Monday will send the dollar index into a weighty correction, swimming like a man in concrete overshoes.

    Euro finally made something resembling a turnaround. Reached up for the 20 DMA at $1.2524, up 0.39%. Could run fast toward $1.2900. Yen confirmed nosedive with a gap down today an a 0.41% drop to 85.99.

    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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