Thursday, March 31, 2011

Gold Price Rose $15.10 to Close Comex at $1438.90, Barely a New High

Gold Price Close Today : 1438.90
Change : 15.10 or 1.1%

Silver Price Close Today : 37.872
Change : 37.1 cents or 1.0%

Gold Silver Ratio Today : 37.99
Change : 0.027 or 0.1%

Silver Gold Ratio Today : 0.02632
Change : -0.000019 or -0.1%

Platinum Price Close Today : 1767.40
Change : -3.10 or -0.2%

Palladium Price Close Today : 763.20
Change : 11.90 or 1.6%

S&P 500 : 1,325.83
Change : -2.43 or -0.2%

Dow In GOLD$ : $176.99
Change : $ (2.31) or -1.3%

Dow in GOLD oz : 8.562
Change : -0.112 or -1.3%

Dow in SILVER oz : 325.30
Change : -0.85 or -0.3%

Dow Industrial : 12,319.73
Change : -30.88 or -0.3%

US Dollar Index : 75.99
Change : -0.128 or -0.2%

Here's how y'all can always tell if I have misspoken myself: (1) if it contradicts what I am steadily telling y'all otherwise, and (2) if it makes no sense whatever.

Yesterday I typed "swap gold for silver," which clearly was a mistaken inversion. Why? Because I have been telling you to swap silver for gold since the ratio was 47.5, and because you only need to look at a chart and remember that you swap gold for silver when the ratio is HIGH relative to where it has been recently, and swap silver for gold when the ratio is LOW relative to recent level.

Sorry, but when I write these in a white hot heat at day's end with other duties yet crying to be done, I will make mistakes. Please forgive me.

I took a trip today to go look over some milch cows, but silver and gold did not disappoint me. Dollar may be breaking down. Stocks wavered.

Since we live not in a perfect world, we take the best we can get and run home with it. Yes, it would have been better had the GOLD PRICE risen $100 today, but it rose only $15.10 to close Comex at $1,438.90, barely a new high, yet will I hug that to my breast and run home smiling.

Now the gold price is clean above its 20 day moving average and has room and momentum to run. It needs only to post an intraday high greater than the last one at $1,447.30. Gold really has no excuse to fall back tomorrow, but if hath strength genuine and lasting, 'twill burst thru $1,439 and close above $1,440. Gold must not decline below $1,425, or 'twill lose this inertia.

The SILVER PRICE reached a new high today by adding 37.1c on Comex and closing at 3787.2c. High came at 3792.9c. Now 3800c assumes the role of roadblock and silver must run it over. Underneath silver lie the strong arms of 3740c, and that it must hold.

With this running start, like broad jumping, silver may not now stop, pause, and look around but must press heartily toward the goal and leap over 3800c. Expect to see that tomorrow.

Bull markets: they climb a wall of worry.

Don't y'all think it strange that the Euro is so very jumpy? Today it popped up again, closed at 1.4159, not quite reaching the last high. Is it a double top, or lead up to a higher breakout? Beats me. I can't imagine why anyone would buy euros in the first place, unless he was planning a European vacation. It's a scrofulous fiat currency not one whit prettier than the scrofulous US dollar.

Speaking of dollars, the dollar index sank 12.8 basis points to a portentous 75.99. Why portentous? High and heavy symbolism lives within that demoralizing close below 76.00. Right, it's only one point, but why didn't the market allow that point to the upside rather than the down?

Technically the dollar hasn't broken down YET, but it is pointed to that last intraday low at 75.25. If it catches there and rebounds, then that's probably the dollar's bottom for this move. If it sinks thru 75.25, then hello 74.

STOCKS wavered and faltered today. 'Twas a ragged day. A rally was defeated early, by 10:45. Then down, then a feeble climb above unchanged, then more vibrating, but in the end sinking 30.88 to close at 12,319.73. S&P500 lost 2.43 to 1,325.83.

Now picture yourself throwing a basketball straight up in the air. The force of your big, bulging muscles sends it shooting into the air. It's acceleration slows, then it seems to hover an instant, then gravity resumes control and it accelerates toward earth and because you are muscle-bound and so slow moving, it smacks you right across the bridge of the nose and gives you two black eyes and a broken nose.

Stocks were doing the hovering part of that today.

At the Top of the World Farm we have two (2) mules for sale, one coming 3 and one coming 1. Both were imprint trained at birth, and the coming-3 is gentle as a dog, the coming-1 not so. Both are out of fine Percheron mares. Jack that sired the coming-3 was 18 hands high, huge. Both mules are for sale, so if you are interested call my son Justin at (888) 218-9226. Serious calls only, please.

MILESTONES OF AMERICAN TECHNOLOGICAL ACHIEVEMENT: On this day in 1896 Chicago's Whitcomb Judson patented a hookless fastener known colloquially as the "zipper."

On this day in 1933 the socialists in the US congress authorized the Civilization Conservation Corps to relieve unemployment by government created jobs. That's what they had to do in the dark times before "stimulus packages" were invented. All things considered, it wasn't too bad. The CCC built some nice state parks and lookout towers and killed some mosquitoes.

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

- Franklin Sanders, The Moneychanger

© 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.