Wednesday, March 02, 2011

The Gold Price Completed a Move Up $6.50 Today to $1,437.20, May Back Off Tomorrow

Gold Price Close Today : 1437.20
Change : 6.50 or 0.5%

Silver Price Close Today : 34.825
Change : 0.409 cents or 1.2%

Gold Silver Ratio Today : 41.27
Change : -0.302 or -0.7%

Silver Gold Ratio Today : 0.02423
Change : 0.000176 or 0.7%

Platinum Price Close Today : 1850.00
Change : 9.80 or 0.5%

Palladium Price Close Today : 818.25
Change : 2.00 or 0.2%

S&P 500 : 11,308.44
Change : 2.11 or 0.0%

Dow In GOLD$ : $173.56
Change : $ (0.64) or -0.4%

Dow in GOLD oz : 8.396
Change : -0.031 or -0.4%

Dow in SILVER oz : 346.50
Change : 0.21 or 0.1%

Dow Industrial : 12,066.80
Change : 8.78 or 0.1%

US Dollar Index : 76.73
Change : 0.057 or 0.1%

The GOLD PRICE rose $6.50 today to $1,437.20 while silver rose 40.9c to 3482.5c. Stay out of their way.

Gold seems to have completed a move up today, so may back off a bit tomorrow. As long as it doesn’t fall through $1,422 'twill be all right. Today's high was $1,440.10, low was $1,427.55. Gold will move higher. Sounds crazy at these heights, but I would buy it here.

The SILVER PRICE bounced more than gold today, but that's what it is supposed to do. Here, too, you might see it back off a bit, but silver is itching to eat up another dollar. High today was 3496c.

And silver hit another milestone today: a bag of US 90% silver coin now costs more than $25,000. When this bull market started, bags cost about about $2,850.

The GOLD/SILVER RATIO fell today, from 41.57 yesterday to 41.27 today. You still have time to swap silver for gold. When the eventual reaction carries the ratio back to 57.5 and you swap that gold swapped now for silver then, you'll understand why we do this. Just count the ounces.

The GOLD PRICE and the SILVER PRICE kept right on plugging away, yet again today. Stocks burned up fuel to no purpose. Dollar staggered and stumbled again.

The dollar can't make any headway. Made another new low for the move today. Low came at 76.55, and the chart shows a down move in deadly earnest. Any move below 76.00 sends the dollar tumbling again. Dollar lost 29.2 basis points today and is now trading about 76.728.

It appears the dollar has smashed the last low at 76.88, and set itself up for a fall to 75.60, November's low. And lower. Euro inched to a new high or the move, or maybe I should say millimetered. Last intraday high was 1.3841, close today was 1.3862. But the euro stands above its 200, 50, and 20 day moving averages, so is in rally mode.

Stock chart today looks like the EKG of somebody with hiccups. Up down, up down, up down, and for burning all that buying power, what did they gain? Dow rose a microscopic 8.78 points to 12,066.80 and S&P500 rose an infinitesimal 2.11 points to 1,308.44.

Stocks have definitively broken down. Oh, the consummation hasn't come yet, but it will as soon as they drop through 12,000. Get the tourniquets ready.

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.