• Silver and Gold Prices May Have Turned Around Pivoted on the 1st December Lows, the Gold Price Rose $18.50 to $1,200.20

    30-Dec-14 Price Change % Change
    Gold Price, $/oz 1,200.20 18.50 1.57%
    Silver Price, $/oz 16.24 0.50 3.16%
    Gold/Silver Ratio 73.904 -1.158 -1.54%
    Silver/Gold Ratio 0.0135 0.0002 1.57%
    Platinum Price 1,218.10 16.40 1.36%
    Palladium Price 804.20 -7.80 -0.96%
    S&P 500 2,080.34 -10.23 -0.49%
    Dow 17,983.01 -55.22 -0.31%
    Dow in GOLD $s 309.73 -5.81 -1.84%
    Dow in GOLD oz 14.98 -0.28 -1.84%
    Dow in SILVER oz 1,107.33 -38.47 -3.36%
    US Dollar Index 90.29 -0.24 -0.27%

    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

    Some deep-pocketed buyer stepped up to the New York gold market today about 10:00 with a big order about $1,187.50 and the GOLD PRICE immediately traded up to $1,200. It backed off a hair, then shot to $1,210, although it gradually dipped to close at $1,200.20, up $18.50 (1.6%).

    The SILVER PRICE followed the same pattern, rocketing from $15.90 to $16.10 at 10:00 a.m., then made a run for $16.49. Closed Comex up 49.7 cents (3.2%) at $16.24.

    What does this action tell us? That sellers under $1,200 are about as rare as sommeliers at a WCTU convention, or, alternatively, butchers at a vegan culinary assembly. Lo, that’s an important piece of information, because it implies that the gold price is running out of sellers altogether at these low prices. True, gold couldn’t throw a leg over $1,205 resistance, but that’s okay. $18.50 for one day ain’t bad.

    What caught my eye was silver’s outperformance today. The GOLD/SILVER RATIO sank from 75.057 yesterday to 73.904 today, down 1.5%. Look, I’m no mor’n a nat’ral born durned fool from Tennessee, but looks to me like there’s a diamond pattern in the gold/silver ratio, and that’s a topping pattern. a close below 72:1 breaks the ratio down out of that diamond, and today’s low was 72.53. A fall out of that diamond would powerfully confirm gold and silver have bottomed. Chart is here:

    On a four month chart, the gold price today broke above its very short term (from the December high) downtrend line. Also closed above its 50 day moving average ($1,195.80) and 20 DMA ($1,199.81). Today’s move also fits into my upside-down head and shoulders pattern for gold I discussed yesterday.

    Silver’s $16.24 close remained below its $16.32 50 DMA and $16.27 20DMA. Still, it poked its head above and closed above the downtrend line from the July 2014 high.

    Right here at the end of the year we may have seen the turnaround for silver and gold prices, pivoted on the 1 December lows.

    The trouble in Greece is wearing on the Euro. It closed flat today, well, up 0.01%, at $1.2158. That pot won’t stop simmering. Even the Japanese Yen caught a safe haven bid — the yen, imagine that! — and rose 0.98% to 83.70 cents to Y100. Meanwhile, in a move that would astonish anybody with more than three brain cells, the US dollar index dropped 24 basis points (0.27%) to 90.29. Why astonishing? Bad as the scrofulous dollar is, the yen is even worse, thanks to recently re-elected Keynesian Abe’s determination to depreciate it.

    For the second day running something indigestible gave US stocks heartburn. The Dow lost 55.22 (0.31%) to 17,983.01; S&P500 dropped 10.25 (0.49%) to 2,080.34. Stocks are already in Cloud-Cuckoo Land anyhow, so I don’t look for much reason there.

    In case y’all have missed my overall stock outlook, here ’tis: they are setting up for a gigantic crash, having been levitated to their present altitude by nothing more than a cloud of hot new money.

    Much to my gratification, the Dow in Gold fell 1.76% to G$309.66 gold dollars (14.98 troy ounces), continuing to move down from its encounter with the Gator Jaws’ overhead boundary. Time to start thinking about the 20 DMA (G$305.94 or 14.80 troy ounces) and how stylish the DiG will look below that mark.

    Dow in Silver lost 3.19% to end at S$1,428.53 silver dollars (1,104.88 oz). 20 DMA isn’t far away at S$1,412.05 (1,092.13 oz). Eventually the Gator Jaws will snap shut.

    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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