• Gold Price Lost $5.30 to Close Portentously Below $1,200 at $1,199.30

    13-Apr-15 Price Change % Change
    Gold Price, $/oz 1,199.30 -5.30 -0.44%
    Silver Price, $/oz 16.28 -0.09 -0.55%
    Gold/Silver Ratio 73.667 0.081 0.11%
    Silver/Gold Ratio 0.0136 -0.0000 -0.11%
    Platinum Price 1,153.50 -16.50 -1.41%
    Palladium Price 771.10 -4.65 -0.60%
    S&P 500 2,092.43 -9.63 -0.46%
    Dow 17,977.04 -80.61 -0.45%
    Dow in GOLD $s 309.86 -0.02 -0.01%
    Dow in GOLD oz 14.99 -0.00 -0.01%
    Dow in SILVER oz 1,104.24 1.15 0.10%
    US Dollar Index 99.74 0.14 0.14%

    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

    Mondays I don’t think too well. Still under the spell of a lazy weekend. Yet think I must, as I some thinkworthy stuff happened today.

    Silver and GOLD PRICE squandered all Friday’s gains by not improving them today. The gold price lost $5.30 to close portentously below $1,200 at $1,199.30. Silver lost 9 cents on the Comex close, leaving it at $16.28. In fact, that close was a greater loss because Friday’s aftermarket saw it over $16.50.

    Watch the uptrend line from Gold’s January low at $1,141.60. On Friday the GOLD PRICE reversed its fall there. Today it stopped falling there. It’s signalling that a break of that line brings a retest of January lows, but if that low holds, gold rallies further.

    The SILVER PRICE wiped out most but not all of Friday’s gains. From the December low at $14.155 through the March low at $15.26 the uptrend line today now hits $15.60 or so. If silver fails to stop here around Thursday’s $16.105 intraday low, it will sink to that post-December uptrend line. MACD is voting for lower prices.

    US dollar index, not for much evident reason, rose 14 basis points (0.14%) to 99.74. If I covered the label on the dollar index chart and didn’t know it was something I despised, I would say the breakout last week will carry it to the last high (100.71), where it will fail.

    A “rationalization” is a reason discovered after the fact. Investment analysts and commentators make a living peddling rationalizations, telling you AFTER a trend has begun why it must continue FOREVER Most everybody thinks linearly, that is, they look at what’s happening today and project it out in a straight line indefinitely into the future. Trouble is, the world doesn’t work that way. Change is the rule, and sometimes change so all-encompassing that you can never recover afterwards. Ask the 1915 buyers of Austrian or German government bonds. Or the 1862 buyers of Confederate States bonds.

    I am thinking, of course, about the scrofulous, parasitical, plumb yellow-evil US dollar. Right now the rationalizers and trend followers have a thousand reasons why it must keep rising, but in truth it’s as spongy rotten as the yen & euro, & way more vulnerable to revulsion from a world worn out by US arrogance.

    But what do I know? I’m just a nat’ral born durned fool from Tennessee where we make wine out of muscadines and whiskey out of corn. We just never learned to make a silk purse out of sow’s ear.

    Ominous day for stocks. Ravens flew over in flocks, buzzards circled, & the sheep livers looked awful. After Friday’s gain at the end of a tough week, stocks lost all inertia from dawn today. Simply fell down a steep hillside all day. Again, failing to improve gains shows weakness.

    Dow Industrials gave back 80.61 (0.45%) & the S&P 500 lost 9.63 (0.46%) to close 2,092.43. Lo, behold the chart! Both indices rose to their upper channel boundary line and wilted like Bela Lugosi in that 1931 film Dracula when he meets a crucifix. Now that issues no ironclad guarantee they won’t rise again, but it does create a presumption of future failure.

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

    – Franklin Sanders, The Moneychanger

    © 2015, 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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