Tuesday, June 08, 2010

The Gold Price Made a New All Time Intraday High at $1251.80

Gold Price Close Today : 1244.00
Change: 4.70 or 0.4%

Silver Price Close Today : 18.468
Change 31.5 cents or 1.7%

Platinum Price Close Today: 1520.00
Change: 10.40 or 0.7%

Palladium Price Close Today: 439.60
Change: 6.20 or 1.4%

Gold Silver Ratio Today: 67.36
Change: -0.910 or -1.3%

Dow Industrial: 9,934.85
Change: 118.36 or 1.2%

US Dollar Index: 88.12
Change: -0.29 or -0.3%

The last two days have trapped the US DOLLAR INDEX in a range from 88.5 to 88.00. Right now it is trading 88.115, down 29 basis points. The dollar is either topping or
consolidating. I pick "consolidating" because it has a target of at least 89.5.

STOCKS rallied today, carrying the Dow up 118.36 to 9,934.85 . (S&P rose 11.52 to 1,061.99.) 'Twas no surprise since stocks were very oversold yesterday. Yet, these heaves are merely the febrile thrashings of the doomed upon death's bed. Stocks now are certificates of guaranteed loss.

Yesterday the Dow Industrials and the Dow Transports both made new lows. That is a Dow Theory signal that the trend has turned down. Bet not against such signals.

Today the GOLD PRICE made a new all-time intraday high at $1,251.80, but closed on Comex up only 4.70 at $1,244. That is higher than the last all-time high (which are coming now once a month) at $1,242.70 on 12 May. However, in the aftermarket gold is trading down about eight bucks at $1,237. That's never an encouraging move, for a market to trade down after a new high.

Upon the face of the six-month chart lieth a riddle: double top (with correction to follow), or rally further? I am inclined to expect a correction, but as long as gold holds above $1,230, it will move higher. Seasonally gold shouldn't be trading this well in June, but there it is. Sometimes reality defies our patterns & expectations.

Silver is not quite synchronized to gold. Today it climbed the ladder high enough to knock on the 1850c door, but settled on Comex up 31.5c at 1846.8c. Now it is trading at 1830c. As long as silver remains higher than 1820c, 'twill keep advancing. A close below that, or an intraday break of 1800c sends silver lower.

All sorts of voices are trashing silver now. Well, a bull market climbs a wall of worry. Besides, everybody's always quick to write silver off. It's the Rodney Dangerfield of investments. True, falling stocks create a downward pull on silver. Don't ask me why, silver just tends to trade in the same direction as stocks -- until it doesn't.

Yet silver's chart says it has completed a down-up-down correction from the last high at 1981 (intraday), revisited its 200 day moving average, and is now ready to fly again. Don't complain to me, I'm only reporting what I observe.

Recurring to yesterday's musing about these wide swings in silver & gold, hedge funds with their sharkish behaviour are no doubt contributing to volatility. They all pile into an investment, then all pile out at the same time, big money pushing big moves. Our job is to filter out the noise -- hedge funds, normal zigzags, Nice Government Men, indigestion -- and focus on the long term trend. A Special Offer:

Small gold coins ("fractionals") usually carry a large premium over their gold content, so I always buy them when I can find them cheap. Right now I'm sitting on so many= that I have to sell some or move to larger quarters.

Best solution is to offer them to y'all at a reasonable price. I've divided them up into packages below. Please note that I will only sell them in these packages. You can buy more than one package, but I can't break up a package.

Ordering instructions appear below the packages, and if you don't follow them exactly there's just no telling what we might do. Spot gold basis is $1,236.10.

Package No. One:

Eleven (11) Austrian one ducat (0.1106 oz, 6% premium) $145.00 ea. Total for package No. 1 with $25 shipping, $1,620.00.

Package No. Two:

Four (4) Austrian four ducat (0.4438 oz, 5.1% premium) $576.30 ea Eight (8) Austrian one ducats (0.1106 oz, 6% premium) $145.00 ea Total for package No. 1 with $25 shipping, $3,490.2

Package No. Three:

Seven (7) South African two rands (0.2354 oz, 4.6% premium) $304.50 ea. same size as British sovereign Total for package No. 3 with $25 shipping, $2,156.50


1. You may order by e-mail only to . No phone orders, please. Your email must include your complete name, address, and phone number. Please mention you saw this offer on goldprice.org in your email. We cannot ship to you without your address. Sorry, we cannot ship outside the United States.

2. Orders are on a first-come, first-served basis until supply is exhausted.

3. "First come, first-served" means that we will enter the orders in the order that we receive them by e-mail.

4. If your order is filled, we will e-mail you a confirmation. If you do not receive a confirmation, your order was not filled.

5. You will need to send payment by personal check or bank wire (either one is fine) within 48 hours. It just needs to be in the mail, not in our hands, in 48 hours.

6. We allow fourteen (14) days for personal checks to clear before we ship. If your hurry is greater than that, you can send a bank wire. Once we ship, the post office takes four to fourteen days to get the registered mail package to you. All in all, you'll see your order in about one month.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2010, 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 $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't.