Friday, December 31, 2010

The Gold Price New All Time High at $1,421.10, Silver Price New High Since 1980

Gold Price Close Today : 1,421.10
Gold Price Close 23-Dec : 1,380.00
Change : 41.10 or 3.0%

Silver Price Close Today : 3091
Silver Price Close 23-Dec : 2931
Change : 160.00 or 5.5%

Gold Silver Ratio Today : 45.98
Gold Silver Ratio 23-Dec : 47.08
Change : -1.11 or -2.4%

Silver Gold Ratio : 0.02175
Silver Gold Ratio 23-Dec : 0.02124
Change : 0.00051 or 2.4%

Dow in Gold Dollars : $ 168.35
Dow in Gold Dollars 23-Dec : $ 173.37
Change : $ (5.01) or -2.9%

Dow in Gold Ounces : 8.144
Dow in Gold Ounces 23-Dec : 8.387
Change : -0.24 or -2.9%

Dow in Silver Ounces : 374.42
Dow in Silver Ounces 23-Dec : 394.86
Change : -20.44 or -5.2%

Dow Industrial : 11,573.42
Dow Industrial 23-Dec : 11,573.49
Change : -0.07 or 0.0%

S&P 500 : 1,257.52
S&P 500 23-Dec : 1,256.77
Change : 0.75 or 0.1%

US Dollar Index : 79.173
US Dollar Index 23-Dec : 80.490
Change : -1.32 or -1.6%

Platinum Price Close Today : 1,768.60
Platinum Price Close 23-Dec : 1,714.60
Change : 54.00 or 3.1%

Palladium Price Close Today : 802.00
Palladium Price Close 23-Dec : 754.10
Change : 47.90 or 6.4%

The GOLD PRICE burst through the last high at $1,415.90, gobbled up $15.50 and closed Comex at $1,421.10, a new all-time high close. Silver added 42.2c for another new high close since 1980 at 3091c.

Minimum targets are $1,475 gold and 3400c silver. Maximum targets are $1,600 and 3700c SILVER PRICE (maybe 3900c).

Laugh at me if you like, but you will see these prices, and with your own eyes.

Today's prices are, obviously, the YEAR END PRICES. Please save these prices for your records if you need to make year end statements.

Today's meditation ponders price versus value.

Often people ask me to quote a price, and when I do, they reply tartly, "I can get it cheaper at so-and-so!" And very sweetly, I reply, "Then you ought to go buy it from them." Conversation ended.

Why? Because some folks don't understand the difference between value and price. For example, you can buy pasteurized, homogenized, completely dead generic milk at Wal-Mart for $1.50 or $2.00 a gallon, or, you can buy nutritious, living and life-giving, wholesome raw milk from your local farmer for $8.00 a gallon.

I know which is cheapest, but which is more valuable? Which do you want to drink? Which do you want your children to drink?

After burying so many corpses from customers who have been cleaned out by Goldline, numismatic boiler rooms, etc., I know that the little commission I charge is worth every cent, because if I do nothing more than keep you out of the hands of the piranhas, I will save you ten times what you pay me. Or, I will take your mess and shift you to something that will rise more quickly and add to that swapping and recover what you've lost and move you ahead of the game. Merely by guiding you to the less expensive coins I can save you $20 - $40 per ounce of gold, or $3 per ounce of silver. After 30 years dealing in gold and silver, I've learned the value of trustworthiness, and I know that the little commission I charge doesn't cost, it pays.

All sorts of Internet shops and newcomers aspire to be the Wal-Mart of gold and silver. I don't. When you buy from them, you get no information on market direction, no guidance about what is your best buy, no long term outlook, no strategy, only a price and (you hope) the goods. If price is all you want, go get it, with my blessing and no hurt feelings.

We face the same challenge on our farm, where we raise and sell grass-fed beef and lamb and pasture-raised chickens and pork. Why do we charge $3.45 a pound for chickens when it costs $0.99 at Kroger? Taste and see, and you will pay. Real food tastes so much better, and nourishes your body so much more efficiently and deeply, that it's worth what you have to pay.

Price and value aren't the same.

This self-destructive cheapness doesn't stop at food. It has teamed up with corporate greed to ship our neighbors' jobs overseas. Everybody rushes to buy junk made in China by dollar an hour sweatshop labor, never stopping to recall that our own prosperity depends on our neighbour's. We are each other's customers, and our brothers' keepers. Besides, that's the only practical course. Every time you try to get something (or somebody's labor) for nothing, you end up getting nothing for something.

John Ruskin summed it up in the 19th century, and he's still right: "There is scarcely anything in the world that some man cannot make a little worse, and sell a little more cheaply. The person who buys on price alone is this man's lawful prey."

I found a lesson years ago that delivers your mind from the fear and torture of greed, and I don't doubt that it will work for everyone. It's the only accounting system that really profits. As long as you're afraid you won't get yours, you'll end up cheating yourself.

"Give, and it shall be given unto you: good measure, pressed down, and shaken together, and running over, shall men give into your bosom. For with the same measure that you measure with it shall be measured back to you." Luke 6:38.

Now to today's markets:

Behold! In markets nothing is written in stone, so even the most reliable indicators can send false signals. However, they are called "reliable" because generally, they are.

Thus with today's higher than last high close on gold, followed by several new highs for the move for silver, the odds overwhelmingly favor much higher silver and gold prices and a rally. Might it abort? Sure, there's maybe a 5% chance of that, but a 95% chance they are moving higher. Every investor has to teach himself to go with the main chance, the primary trend, and never to draw to an inside strait, the least-likely outcome.

The US DOLLAR INDEX broke that 79.40 support today and crashed to a low of 78.775 -- ouch! It spiked to a bottom today, and climbed back out, but this probably won't last. This leaves us looking for a new target, 78.80 to 78.30, and even including the 50 DMA at 79.06. RSI and MACD are also pointing down.

What meaneth this portent? A declining dollar helps stocks and silver and gold. Many of the hopeful are counting on the presidential cycle to bail out stocks this year (they usually rise in the third year of a presidential term because the scumbag in office is trying to get prices up before his re-election bid). This time 'round they may be surprised.

Yet let's hear the bottom line: declining dollar or not, stocks remain in a primary downtrend or bear market. Therefore however much a sick dollar may help them, silver and gold (in a primary bull market or upward trend) will strongly outpace them. Proof of stocks' inability to keep pace with a hyperinflation (let alone the inflation we are witnessing) can be found in Constantino Bresciani- Turroni's classic examination of the hyperinflation in Germany. In spite of huge nominal gains then, stocks actually lost value.

Today stocks twisted in confusion. All indices but the Dow dropped, but the Dow managed to rise a magnificent 3.71 points to 11,573.42. S&P500 gave up -0.36 to land at 1,257.52.

On this day in 1781 the first "modern" bank in the US was organized by Robert Morris, the Bank of North America, by the Confederation Congress, just to prove that wherever there is a government, however weak and tottering, some bankster parasite will emerge to wrest a charter and privilege from it. The folks behind the Bank of North America, including Hamilton, wanted to make it the de facto central bank of the US, like the Bank of England, but it wasn't quite adequately capitalized. So the banksters came up with a scheme to fool people into believing in its financial soundness. They only had a few bags of silver coin, but they hired three men to hoist the bags up from the cellar in a dumb waiter. Then they would noisily unload them from the dumbwaiter onto a dolly, and just as noisily push them across the lobby of the bank for all the customers to see. It was eventually succeeded by the First Bank of the United States, having been unable to plant the eggs of its tapeworm into the national gut.

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Thanks for your understanding.

May God bless you all in 2011 and always!

Y'all enjoy your weekend.

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

- Franklin Sanders, The Moneychanger
Phone: (888) 218-9226 or (931) 766-6066

© 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.