Gold Price Close Today : 1,324.40
Gold Price Close 15-Oct : 1,371.10
Change : -46.70 or -3.4%
Silver Price Close Today : 2312.5
Silver Price Close 15-Oct : 2427.2
Change : -114.70 or -4.7%
Gold Silver Ratio Today : 57.27
Gold Silver Ratio 15-Oct : 56.49
Change : 0.78 or 1.4%
Silver Gold Ratio : 0.01746
Silver Gold Ratio 15-Oct : 0.01770
Change : -0.00024 or -1.4%
Dow in Gold Dollars : $ 173.76
Dow in Gold Dollars 15-Oct : $ 166.79
Change : $ 6.97 or 4.2%
Dow in Gold Ounces : 8.406
Dow in Gold Ounces 15-Oct : 8.068
Change : 0.34 or 4.2%
Dow in Silver Ounces : 481.41
Dow in Silver Ounces 15-Oct : 455.78
Change : 25.63 or 5.6%
Dow Industrial : 11,132.56
Dow Industrial 15-Oct : 11,062.63
Change : 69.93 or 0.6%
S&P 500 : 1,183.08
S&P 500 15-Oct : 1,176.20
Change : 6.88 or 0.6%
US Dollar Index : 77.486
US Dollar Index 15-Oct : 77.019
Change : 0.47 or 0.6%
Platinum Price Close Today : 1,674.00
Platinum Price Close 15-Oct : 1,699.00
Change : -25.00 or -1.5%
Palladium Price Close Today : 590.50
Palladium Price Close 15-Oct : 592.00
Change : -1.50 or -0.3%
GOLD and SILVER closed puny on Comex. Silver rose a colossal 2/10 of a cent to 2312.5c, and gold dropped 30c to $1,324.40.
The Silver Price lost 114.7c this week. Today it made a new low overnight at 2280c, but the 5 day chart looks like it may have completed its correction. Only thing that keeps me from becoming dogmatic in that opinion is that this week ended so quietly -- full of fury during the week, and did nothing today as if the week had just tired everybody out.
To put this correction in perspective, a 20% correction of the July-October move is 2302c. That's been satisfied. 2250c would correct the February - October move. More, silver's 20 DMA stands at 2292, and that might catch it. Because I view this as a minor correction in a larger, ongoing trend, last week's top wasn't a major top and therefore doesn't deserve a major correction. You'll know that outlook is wrong if silver closes below 2090c and gold below $1,265.
My friend Catherine Austin Fitts made me meditate on these words:
"Enemies of self-determination and peace send us the message that we have no power. Why do we listen to them and ignore the interests of those whom we love?" Insightful question.
The week never lies. It's the scoreboard at the end of the game. And this week ended with a whimper, not a shout, after huge moves by the dollar, gold, and silver -- but not stocks.
For the nonce we must assume that the US dollar has turned around at last and begun to rally, but the dollar still needs to confirm that intention by higher prices next week. On Monday the Dollar made a new low for the move at 76.85, then rallied on Tuesday by 131 basis points. Next day it followed through with -- a 99 basis point drop! Some consistency. However, this decline drew out a double bottom with another low Thursday at 76.85. Today it stalled at 77.60 resistance, and now is trading at 77.486, up 6.8 basis points. This has also traced out an upside-down head and shoulders, not much but it targets 78.20 in the very short term. Further out the dollar should reach 80 or 82. However, you will know it has failed and turned its back on a rally if it closes below 76.85. That break would drag the dollar down to 74.25.
STOCKS, which without question were benefiting from the Fed's announced Quantitative Easing 2 inflation campaign as much as silver and gold, have shown themselves remarkably indifferent to a rising dollar. Tuesday the Dow dropped 165.07, but then returned to the April/May resistance at 11,150-11,200. Today showed bewilderment: the Dow dropped 14.01 to 11,132.56 while the S&P500 gained 2.82 to 1,183.08. Other indices rose. That up and down mixed close doesn't bespeak strength or confidence. Stay out of stocks, they are locked into a bear market that will extend another five years.
The RSI is also encouraging for Silver, having descended from its massively overbought heights. The MACD, however, is hinting at further declines.
The Gold Price made a new all time high close at $1,376.7 last Thursday, then hit 1371.20 on Monday for a double top. Tuesday gold fell 36.10 or 2.64% -- a meaty move. So far $1,315-$1,320 has held, and that may complete the correction. But don't be surprised if it stumbles clean to $1,293 sharply, then rebounds. Or support at the $1,300 round number might hold.
Raise your eyes a moment through this dusty confusion to the bull market horizon. All this plunging and correcting merely shakes out the weak holders, cleansing the market to prepare for the next advance. I am still looking for gold to reach $1,600 and silver to reach 3400c (if not 3900c) at the end of this move. That should occur in January, February, or March.
And that will NOT mark the end of the bull market. It has another 5 years to run.
On this day in 1836 Sam Houston was inaugurated at the first elected president of the Republic of Texas. Like many great men, Houston was a congeries of courage, vision, and bull-headedness, with a substantial admixture of ethanol.
On this day in 1907 began the Panic of 1907 when depositors began withdrawing their money from New York banks. The banksters leveraged this disaster into a congressional study group sent by congress to investigate the "scientific" central banking systems of Europe. If you suspect they had a conclusion in mind before hand, you would have judged accurately. It was the Federal Reserve.
On this day in 1934 another gangster, Charles "Pretty Boy" Floyd, a notorious robber of banks, was shot and killed by federal agents in East Liverpool, Ohio.
Now how do you tell a bankster from a gangster? Well, "some rob you with a six gun, and some with a fountain pen." Besides that, instead of using a six gun or Tommy gun to rob you, the banksters use congress.
I would appreciate y'all's prayers for my wife, Susan. Remember she had heart surgery about two years ago, a mitral valve repair, and she is suffering from an irregular heartbeat again. This comes on top of her foot surgery four weeks ago. Bad as all that sounds, my toughest assignment is to slow her down.
Y'all enjoy your weekend. Argentums et aurum comparanda sunt --
-- Silver and gold 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 bubble has burst, primary trend down.
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.