Friday, July 02, 2010

Lower Silver and Gold Prices Offer you Another Opportunity to Buy Metals on Sales - Don't Pass it Up.

Gold Price CloseToday : 1,207.40
Gold Price Close : 25-Jun 1,255.80
Change:-48.40 or -3.9%

Silver Price Close Today : 1769.8
Silver Price Close : 25-Jun 1911
Change -141.20 or -7.4%

Platinum Price Close Today: 1,503.30
Platinum Price Close: 25-Jun 1,568.10
Change: -64.80 or -4.1%

Palladium Price Close Today: 432.40
Palladium Price Close 25-Jun 477.40
Change: -45.00 or -9.4%

Gold Silver Ratio Today: 0.01466
Gold Silver Ratio 25-Jun: 0.01522
Change: -0.00056 or -3.7%

Dow Industrial: 9,686.48
Dow Industrial 25-Jun: 10,143.81
Change:-457.33 or -4.5%

US Dollar Index: 84.373
US Dollar Index 25-June: 85.299

Whoooo, it was a rough week, especially for stocks and the dollar. Wasn't too killing easy for silver and gold, either.

SILVER and GOLD PRICES worked through a rough week, struggling toward old tops only to break yesterday. The gold price lost $39.20 and dropped to $1,206.30. Silver had one of those Big Buck Down Days, losing 91.1c to close $17.76. Enough pain for everybody.

Must I yet again be tortured with the doofy articles written by pretentious know-nothings screaming that the "Gold bubble is dead"? I reckon so. What are we dealing with? A correction in the gold market. I think we probably saw the bottom of it yesterday, but I will play the pessimist. As long as gold remains above $1,183, the decline is over and gold is healing for the next race upwards. Ditto silver, at 1750c.

Today both metals coasted. Silver closed Comex down 6.2c at $17.6980 while gold rose $1.10 to $1,207.40. Before the weekend nobody wants to carry positions, so in the aftermarket gold climbed to $1,212 and silver to $17.90. There's a good likelihood metals will move sideways, licking their wounds, for most of July. Don't expect much lower prices.

In fact, these lower prices offer you another opportunity to buy metals on sales. Don't pass it up.

Yesterday and today alone the US dollar index lost 175.4 basis points. In the last two days the dollar index fell from 86.20 clean through 85 and deep into the 84s. Today it lost another 34.3 basis points to close at 84.373. You are watching the long awaited movie, "Revenge of the Euro-Nerd," as the Euro stages it first serious rally after a roughly 1700 basis point plunge since April. Off a 119.13 June low the Euro has now rallied to 125.68 and through its 50 day moving average (124.85). This Euro rally may drag on a while as the world decides which it prefers, Euro-trash or US-trash. Neither has any intrinsic value, and one is about as bad as the other. Tough choice, that: Would you like leprosy or small pox?"

Now that the dollar has fecklessly fallen through 85, it has jumped through into a mine shaft with no landing above 82.25. I'm not 100% persuaded yet, but the dollar is beginning to leave the impression that all hope for resuming its rally has vanished. Expect a lower dollar next week and a higher Euro.

The Nice Government Men had some heavy lifting today with stocks merely to prevent them lurching through 9,600. Today's Dow chart looks like a great bowl with the open at 9,732, high at once at 9,770, then a long rounding swoon to a 9,614 low about 1:00. About that time the alarms began to clang in the Nice Government Men's Market Fire House. Down they came, sliding down their brass poles, to hop into their Manipulation Machines to pump liquidity on a dying market. That gradually brought the market about as it climbed slowly up to close down only 41.49 at 9,732.53. The S&P500 followed suit, falling 3.34 to 1,027.37. Has anybody besides me noticed how close to the magical 1,000 the S&P500 hath fallen? Lo, the tears will pour and the rats will flee when it breaks 1,000.

Y'all enjoy your weekend.

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.