Wednesday, September 08, 2010

There is Fierce, Unstoppable Buying Power Beneath This Market

Gold Price Close Today : 1255.60
Change : (1.70) or -0.1%

Silver Price Close Today : 19.978
Change : 0.090 cents or 0.5%

Platinum Price Close Today : 1558.00
Change : 22.00 or 1.4%

Palladium Price Close Today : 526.00
Change : 6.00 or 1.2%

Gold Silver Ratio Today : 62.85
Change : -0.370 or -0.6%

Dow Industrial : 10,387.01
Change : 46.32 or 0.4%

US Dollar Index : 82.66
Change : -0.293 or -0.4%

Please note that I will be away on vacation all next week so I will not be publishing commentaries then.

Silver and gold wrestled with resistance today like Jerry Lawler against the Masked Avenger. Rough. (This is a metaphor only those who watched TV wrestling in Memphis 35 years ago can appreciate.)

STOCKS today gained, but . . . The Dow rose 46.32 to 10,387.01 while the S&P500 added 7.03 to end at 1,098.87.

None of this looks particularly strong to me. The five day chart shows what might be a rounding top over the last three days. Resistance stands at 10,450 and if the Dow can squeeze through that point it might arrive at 10,720, but the mighty 200 day moving average stands in its way at 10,451. Doesn't excite me up or down, but I noticed today that Al Thomas of, thought stocks were leaning to the upside. Al is one of those Old Dogs (said with the utmost respect) who has actually spent his life trading for a living. If he tells you a rooster dips snuff, you can look under his wing for the brush. And when he says the market is leaning upwards in the teeth of what he understands is a bear market, it hints that he expects a temporary rise. Whatever the outcome, this action is only torture for the bear's victims, so keep yourself out of his claws: stay out of stocks.

US DOLLAR index got its feet tangled in the 20 (82.72) and 50 (82.61) day moving averages today. It lost 29.3 basis points and now runs 82.606. Five day chart, if it speaks aught other than gibberish, hints that the dollar has finished its first move up off the 81.90 low and today corrected that upmove. If I were long dollars, and, LO! I would never do such an insane act, I would not want that dollar to drop below 82.40 support, today's low. That would make me run for the doors or hide under a table, hinting as it would that the buck is about to drop sharply.

SILVER and GOLD had games played on them all day as the struggled to pierce stonewall resistance.

The five day chart is all meaningless chop back and forth, but this much stands out: today silver never fell below 1983c, and it reached a higher high at 2014c. Is that a spike top today, or something else. My intuition, watching silver struggle today, still insists we have not quite reached the top. Close, maybe, but not quite. Yet consider the progress: that old stonewall at 1980c has been cracked. If silver intended to stop here, would it have done that, or would it have failed first?

This was another crazy day, but today it was gold's turn to drop and silver's to rise. Silver added 9c to close at 1997.8c, not quite the 2000c that will demoralize all bears once it is left behind. Gold lost $1.70 to close $1,255.60. Like silver, gold doesn't appear to have topped yet. Same support levels rivet our attention today, that is, silver must not close below 1950c nor gold below $1240.

We may observe a week or two more of upward flight in silver and gold prices before they correct. However, this correction will not be terribly deep, and it will only set metals up for a much longer, stronger move into a January or spring 2011 peak. There is fierce, unstoppable buying power beneath this market.

My daughter Liberty has reported on the Bodacious Hoedown with pictures at her blog, 16 Balls in the Air, You can read about it there.

Although I don't usually stock them due to their high premium, today I bought a large lot of 1/10 American Eagles at a very favourable price. If I had to buy them from a wholesaler, I would have to charge you $146.90, a 17% premium.

However, next week I will be away on vacation and I would like to move these out by Friday (not ship them, just get them sold).

Here is my special offer: I will sell lots of Twenty (20) coins each for $138.05 apiece, a 9.9% based on $1,256.10 spot gold.

Minimum order is a lot of Twenty (20) pieces, or 20 x $137 = $2,740, plus $25 shipping.

You may order more than 20 pieces, but only in increments of twenty (20), so I will sell you 20 or 40, or 60, but not 24 or 37 or or 50 or 70. Add $25.00 per order for shipping.

First come, first served, and no re-orders at these prices. I will write orders based on the time I receive your e-mail. Ordering Instructions:

1. You may order by e-mail only to [email protected]
Your email MUST include your complete name, address, and phone number. Please mention you saw this special offer on We cannot ship to you without your address. Sorry, we cannot ship outside the United States or to Tennessee.
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, you 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. Next week all but one of us will be out of the office and so we will not make any shipments next week.

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.