Monday, March 07, 2011

Gold Price Completed Correction, Higher Prices Tomorrow Unless It Trades Below $1,428

Gold Price Close Today : 1434.10
Change : 5.90 or 0.4%

Silver Price Close Today : 35.855
Change : 0.538 cents or 1.5%

Gold Silver Ratio Today : 40.00
Change : -0.442 or -1.1%

Silver Gold Ratio Today : 0.02500
Change : 0.000273 or 1.1%

Platinum Price Close Today : 1818.80
Change : -16.30 or -0.9%

Palladium Price Close Today : 788.65
Change : -21.00 or -2.6%

S&P 500 : 1,310.13
Change : -11.02 or -0.8%

Dow In GOLD$ : $174.27
Change : $ (1.86) or -1.1%

Dow in GOLD oz : 8.430
Change : -0.090 or -1.1%

Dow in SILVER oz : 337.19
Change : -2.28 or -0.7%

Dow Industrial : 12,090.03
Change : -79.85 or -0.7%

US Dollar Index : 76.47
Change : 0.075 or 0.1%

I suspect-guess-reckon that from Thursday of last week through today the GOLD PRICE completed an up move. Today's high was $1,444.20, just before the New York market opened. It then dropped from the openings, bottoming at $1,428.05 just before noon, then climbing to a Comex close at $1,434.10, $5.90 higher than Friday. Gold appears to have finished a correction today, which makes it a candidate for higher prices tomorrow. Trading below $1,428 would gainsay that forecast flat-footed, and drag gold lower.

Platinum and Palladium didn't behave well today. That doesn't help silver and gold.

Dull day for the SILVER PRICE, it only gained 53.8c on Comex today, closing at a new high of 3585.5c. Silver's pattern today mimicked gold's. It made a new high at 3673c (not a typo), extending its rise from Thursday and probably making at least a short term top. Today's close was bumping along the bottom of the day's trading range. Below 3500c silver runs into trouble.

Again, I put my hand over my mouth. In these crazy straight up rises, a market is liable to go anywhere or stop anytime. However, the backwardation in silver is much plainer now and more pronounced than it has been -- curve is flattening, if you will. That means it's about time for the exchange or the government -- or both -- to step in a pick the public's pocket before some of the banks and market makers begin to lose money on their short positions.

Y'all cut me some slack. I write these commentaries at day's end, running like a scalded dog to get them written and sent, so proof-reading occurs, but at a minimal and hurried level. When you see some obvious, egregious error, it is probably just that, an error, so say to yourself, "Poor old fellow. He's just not as sharp as he used to be."

Case in point was the silly error on Friday about the GOLD/SILVER RATIO plunge from its 84.329 reaction high in Autumn 2008. Friday the ratio had fallen to 40.439, which, as any 2nd grader could tell you, is NOT down 25.7% from its high (as I wrote), but rather 52.05% below it.

Scanning over the day, my eyes catch on the stock market. Have y'all noticed how the Dow keeps on knocking on 12,050? Today was the third time, and there is no such thing as a triple bottom. Tomorrow, or soon, it will knock at 12,050 and the trap door there will prove rotten and give way.

Believe me, I know how many people have hopes and dreams of retirement pinned on the stock market, and it give me no pleasure to warn you. Stay at your grievous risk.

Dow today lost 79.85 points to close at 12,090.03. S&P 500 lost a little more percentagewise, down 11.02 to 1,310.13. Downtrend is established, and the plunge will come.

US DOLLAR INDEX made a spike bottom today at 76.124, then rose above 76.40. This is merely a little intraday pattern, so it must walk ahead and confirm the bottom by climbing and continuing to gain. The Euro dropped to 1.3972. Yet the breakout to the upside remains on the chart, and the Euro must close below 1.3841 to change direction.

Some time or the other, before too awful long, the dollar ought to turn around. Logically silver, gold, and stocks are due for a down phase, and a rising dollar helps drive that. Yet things happen in the fullness of their own time, and not to my order. Dollar could become much more oversold from here still before it turns.

Behold, I am not a cynic, I am a realist. Every market in the US is run with government collusion for the benefit of the financial houses. Ned Schmidt even noted today that the Federal Reserve kept interest rates low to keep the cheap speculative money flowing to Wall Street. If there's a candid, honest financial market in this country, I don't know what it is.

But I do not despair. I hope. Eleven states now have bills threatening to establish silver and gold as an alternative tender to Federal Reserve notes. Mercy! Just let that dance across your mind a minute. From 1981 to 2000 I was hounded, investigated, indicted, nearly killed, acquitted, convicted, and jailed because I insisted that the US and state constitutions and statutes and cases say that only SILVER and GOLD are US money. I was branded a monetary crank, a nut-case, a lunatic, and even The Most Dangerous Man in the Mid-South by an assistant US attorney-ess. Now, looky here, eleven states are trying to assert the same.

I reckon the Nice Government Men -- bless their tiny, stony hearts -- are going to have to add a lot of new cells in jails and lunatic asylums all over eleven states, or else I'm in danger of becoming mainstream.

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

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

© 2011, 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.