Thursday, April 28, 2011

Caution Light on For Silver and Gold Prices

Gold Price Close Today : 1530.80
Change : 14.20 or 0.9%

Silver Price Close Today : 47.520
Change : 1.562 or 3.4%

Gold Silver Ratio Today : 32.21
Change : -0.786 or -2.4%

Silver Gold Ratio Today : 0.03104
Change : 0.000739 or 2.4%

Platinum Price Close Today : 1841.20
Change : 18.20 or 1.0%

Palladium Price Close Today : 776.50
Change : 11.50 or 1.5%

S&P 500 : 1,375.13
Change : 1.47 or 0.1%

Dow In GOLD$ : $171.84
Change : $ (1.12) or -0.6%

Dow in GOLD oz : 8.313
Change : -0.054 or -0.6%

Dow in SILVER oz : 267.79
Change : -8.35 or -3.0%

Dow Industrial : 12,725.40
Change : 34.44 or 0.3%

US Dollar Index : 73.12
Change : -0.404 or -0.5%

Don't miss my special offer below.

Sorry I sent no commentary yesterday, but I was finishing my monthly Moneychanger newsletter for paid subscribers, who can log in to and pick up the April issue.

Listening to Ben Bernanke today quoted from his press conference yesterday, I was amazed how incompetent he sounded, stuttering like someone telling an uncertain lie. If he's the best the central bankers have, their gunwales are deeper under water than I even I suspected.

He announced yesterday that his imagination has been surgically removed. At least, that is MY turn on his idiotically continuing the Keynesian nostrums that have so long and with such historical uniformity failed. Poor boy doesn't have imagination enough to think of anything else. What a punishment, to be subjected to a goof like that!

The US DOLLAR, taking its cue from Bernanke's announcement yesterday that he would surely keep interest rates low and thereby assuring he would keep on inflating, sank like a lump in a churn. Y'all remember that more than any other factor, interest rates determine currency exchange rates. Euro managers raise euro interest rates, Bernancubus suppresses dollar interest rates, and surprise, surprise, the scrofulous buck sinks against the scabrous euro. It's the Clash of the Midgets, seeing who can slither down the drain first.

Whooo. That felt good. Now, back to the buck.

Today the US dollar index sank another 40.4 basis points (0.52%) on top of the 53 basis points it threw away yesterday. Trading now at 73.115 on its way to 40 [sic]. Get this: Bernard O'Bama and the Bernanculus are gutting your dollars to please their masters and keep the parasitism dribbling along a while longer. If that don't make you howling mad, you have no mad gland.

Euro rose like your mama's house guest sitting on a whoopee cushion (I bet you got one memorable whipping for that!). New high for the move at 1.4817 Yen rose 0.8% to Y81.54/$ (122.64c/Y100).

Let me put this stock thing in perspective for y'all. Stocks are now maybe 20% above December 2010, yet against gold they have actually dropped. Against silver they have dropped a lot, down to 90% of their June 2003 peak value. Y'all see now? I don't want your stocks, because they are like those smoke bombs they sell for July 4th -- all smoke and noise, no bang. In fact, stocks remain the government-approved, OSHA-safe imitation cherry bomb in Tennessee Bob's Wholesale Fireworks Investment Store. And will remain.

Today the Dow rose 34.44 to 12,725.40, hand in hand with the S&P500 which didn't exactly rise, but, well, barely lifted itself up on the ball of its foot 1.47 points to 1,357.13. Oddly -- he always says that when he sniffs blood somewhere -- all the other indices fell. That's confusion, and confusion doesn’t make for strong markets.

I know some of y'all are going to get madder than a wet wasp, but I have to flip the switch on the caution light on SILVER and GOLD PRICES. After the Bernancubus glued the accelerator pedal to the floor yesterday, silver and gold prices took off wildly. But bear in mind that it is not unusual for the SILVER PRICE to top one day, then the GOLD PRICE to top a few days later. Key is that the Gold/Silver ratio, after a new low 25 April at 31.996, shot up to 33.36 the next day. In all silver and gold's recent upside downs, that hasn't happened. But maybe I am only nervously anticipating when I ought to be contentedly enjoying. Still, a live dog is better than a dead lion.

Today the gold price made a new intraday high at $1,538.30 and a new closing high (all-time since the beginning of the cosmos) at $1,530.80, up $14.20 on Comex. Low came at $1,524.10. In the aftermarket gold's playing footsie with $1,536.

Only target I have to work off is that upside down head and shoulders gold broke out of. That points to $1,525 - $1,557. The gold price would have to close below $1,505 to invalidate this rally.

Ohhh, I HATE parabolas, and silver's chart clearly shows one. They are rally killers, and on this drive the silver price will need every sinew and ounce of strength to burst through that historic brick wall at 5000c per ounce. If it does, it will run straight skyward.

Yet -- O, absolve me, Silver Bugs! -- I had rather capture my silver profits now by swapping silver for gold and miss part of that move, than see the reaction take them all away. Swapping for gold, I will at least get to swap back for MORE silver when the ratio rises. Not swapping, I will only get to cherish the warm, fuzzy memory of reading all those Internet gurus who convinced me the silver price will reach $100 by next Friday.

The SILVER PRICE has a threatening double top, reached Monday and today, at 4982c and 4950c. The silver price must clear 5000c immediately and not fall below 4725c, or succumb to the Kryptonite of fifty bucks. This situation is as full of tension as your cheeks when you suck on to a firehose. Here it shall not remain, but must advance or fall back.


Because the last Special Offer sold out so fast, I promised y'all I'd come up with another soon, so here 'tis.

Gold Coins Under US$100:

Offer # 1. Mexican two pesos. Contains 0.0482 troy oz. gold, about 1/20 oz. At a 5.6% premium I can sell 30 ea. Mex 2 p @ US$78.20 ea = $2,346.00 + $25 shipping = $2,371.00 total per lot.

Offer # 2. Mexican 2-1/2 pesos. About 1/16 ounce with exactly 0.0603 oz gold. Also at 5.6% premium, so 30 ea. Mex 2-1/2 p @ 97.80 = $2,934.00 plus $25 shipping = $2,959.00 total per lot.

More Imperial German 20 Marks.

Offer # 3. German 20 Marks. Minted nearly 100 years ago, before 1915, 0.2304 troy oz. At 4.36% premium, order 10 ea. German 20 M @ $369.50 ea., or $3,695.00 + $25 shipping = $3,720 per lot.

Offer # 4. South African Two Rands. Same size as the British sovereign, 0.2354 troy oz, but lower premium at 3.6% over gold. 10 ea. S.A. 2 Rands @ $374.90 = $3,749.00 + $25 shipping = $3,774.00 total per lot.

A very few more US $5 and $10 Commemoratives.

Offer # 5. U.S. $5 and $10 modern commemoratives. I found only 36 ea of the $5 (contains 0.2418 oz gold) at $386.15 and 4 ea of the $10 (0.4838) at $772.30. Premium over gold content for these is 3.9%.

I will sell lots of Eight (8) each $5 gold commems for $3,089.20 + $25 shipping = $3,114.20 per lot. A $10 gold counts as two $5 golds, so you can order one $10 and six $5s and that equals Eight $5s.

For this item only, limit one (1) lot per customer.

Offer # 6. Mixed Peace and Morgan silver dollars. I have two lots only of mixed VG+ Peace and Morgan silver dollars at a 10.9% or $40.50 (0.765 oz silver each) One lot is 120 ea at $40.50 ea or $4,860 + $35 shipping = $4,895 per lot. Note that these are the circulated US silver dollars minted before 1936 in VERY GOOD or better condition, so all will show some wear, some much wear, but all will be FULL VG with no rim dings, nicks, etc.


Orders by e-mail only. Please do not call.

We will not take orders for less than the minimums shown above. You may order more than one lot for everything but the US commems, but not in increments of less than one lot. That is, you may order 30 Mexican two pesos or 60 or 90, but not 36 or 45.

First come, first served, and no re-orders at these prices. I will write orders based on the time I receive your e-mail.

Spot gold basis for all prices above is $1,536.60.

Friendly advice: When you order, list the alternative lots you will accept, in case what you order has already been spoken for. That way your timely response will at least be rewarded with something., ORDERING INSTRUCTIONS:

1. You may order by e-mail only to . No phone orders, please.

Your email must include your complete name, address, and phone number. We cannot ship to you without your address. Sorry, we cannot ship outside the United States or to Tennessee. Please mention you saw this special offer on

Repeat, you must include your complete name, address, and phone number. Our clairvoyant quit without warning last week and we can no longer read your mind.

2. Orders are on a first-come, first-served basis until supply is exhausted.

3. "First come, first-served" means that we will enter the orders in the order that we receive them by e-mail.

4. If your order is filled, we will e-mail you a confirmation. If you do not receive a confirmation, your order was not filled.

5. You will need to send payment by personal check or bank wire (either one is fine) within 48 hours. It just needs to be in the mail, not in our hands, in 48 hours.

6. We allow fourteen (14) days for personal checks to clear before we ship. If your hurry is greater than that, you can send a bank wire. Once we ship, the post office takes four to fourteen days to get the registered mail package to you. All in all, you'll see your order in about one month.

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.