Monday, August 30, 2010

The Gold Price Needs to Move Higher. Soon.

Gold Price Close Today : 1236.90
Change : 1.30 or 0.1%

Silver Price Close Today : 19.010
Change : (0.029) cents or -0.2%

Platinum Price Close Today : 1530.00
Change : -1.00 or -0.1%

Palladium Price Close Today : 499.00
Change : -5.00 or -1.0%

Gold Silver Ratio Today : 65.07
Change : 0.167 or 0.3%

Dow Industrial : 10,009.74
Change : -140.92 or -1.4%

US Dollar Index : 83.18
Change : 0.364 or 0.4%

Looking over both SILVER and GOLD PRICES thoughtfully, today was neither exciting nor encouraging.

The SILVER PRICE vibrated sideways from $19.18 to $18.92, but mostly swung back and forth over $19.00. Comex closed down 2.9c at $19.01, and right now the silver price is trading at $19.06. From here $19.30 must be beat, then $19.70.

This could be good, this could be bad. Expect that the silver price must work up strength to breach resistance at $19.70 that so often has turned it back in the past. On the other hand, the silver price cannot forever stand still, but must push high to make good and confirm gains already made. I would not want to see silver close below $18.85.

The GOLD PRICE fluttered sideways, too, between $1,233.30 and $1,238.15. On the 5-day chart this gives the last three days a bowlish shape which might be a rounding bottom. The gold price must not close below $1,232 and up above must break through $1,240. Comex today closed up 1.30 at $1,236.90. Gold needs to move higher. Soon.

Nobody can really parse what Bernanke said over the weekend, but maybe it had some effect on the dollar's little rise today, up 36.4 basis points to 83.175. On the 5-day chart this sketched a strong rise away from Thursday and Friday's double bottom at 82.65. Resistance here stands at 83.20, and the dollar looks ready to bull thru that and crash the next resistance at 83.50. Today it closed above the 50 DMA (83.08). The 20 DMA likes below at 82.16, but is curving up toward the 50 DMA. MACD is pointing up but histogram nags a little. RSI is high but not oversold. Dollar should move higher.

Every day small things appear that give us cause to turn to heaven with thanksgiving. For me today, one is that I do not belong to the Nice Government Men tasked with keeping the stock market afloat. After Friday's rise of 122.23, the Dow today lost 140.92 to close at 10,009.74. (S&P fell 15.67 to 1,049.92). All that heavy lifting the NGM did on Friday to boost the Dow above 10,000 just evaporated and they're right back where they started, like Sisyphus rolling the rock up the hill only to see it roll right back down. Me, oh, my. The Dow is 9.74 points from crashing the morale-breaking 10,000 point, it stands below its 200, 20, and 50 day moving averages, other indicators all point down -- It's enough to send a NGM reaching for the bicarbonate of soda.

A wholesaler offered me something I seldom sell because of the high premium: 1/10 Canadian Maple Leaves. He was in a hurry to sell them, and so offered them at a very low price. Based on gold at $1,237.70 I would normally sell them at $144.00, but these I can sell at $137.30 each. That's a 10.9% premium on an item that usually carries a 16.3% premium.
Minimum order is a lot of Twenty (20) pieces, or 20 x $137.30 = $2,746. Spot gold basis is $1,237.70.
You may order more than 20 pieces of either, but only in increments of twenty (20), so I will sell you 20 or 40, or 60, etc., but not 24 or 37.
Add $25.00 per order for shipping.
First come, first served, and no re-orders at these prices. I can sell a maximum of 21 lots. Ordering Instructions:
1. You may order by e-mail only to .
Your email MUST include your complete name, address, and phone number. We cannot ship to you without your address. Sorry, we cannot ship outside the United States. Please mention you came from in your email.
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 email.
4. If your order is filled , we will email 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 will 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.