Friday, April 15, 2011

The Gold Price Broke Out, So Buy

Gold Price Close Today : 1,485.30
Gold Price Close 8-Apr : 1,473.40
Change : 11.90 or 0.8%

Silver Price Close Today : 4256.6
Silver Price Close 8-Apr : 4060
Change : 196.60 cents or 4.8%

Gold Silver Ratio Today : 34.894
Gold Silver Ratio 8-Apr : 36.291
Change : -1.40 or -3.8%

Silver Gold Ratio : 0.02866
Silver Gold Ratio 8-Apr : 0.02756
Change : 0.00110 or 4.0%

Dow in Gold Dollars : $ 171.79
Dow in Gold Dollars 8-Apr : $ 173.69
Change : $ (1.91) or -1.1%

Dow in Gold Ounces : 8.310
Dow in Gold Ounces 8-Apr : 8.402
Change : -0.09 or -1.1%

Dow in Silver Ounces : 289.98
Dow in Silver Ounces 8-Apr : 304.93
Change : -14.95 or -4.9%

Dow Industrial : 12,343.16
Dow Industrial 8-Apr : 12,380.05
Change : -36.89 or -0.3%

S&P 500 : 1,319.68
S&P 500 8-Apr : 1,328.17
Change : -8.49 or -0.6%

US Dollar Index : 74.873
US Dollar Index 8-Apr : 74.869
Change : 0.004 or 0.0%

Platinum Price Close Today : 1,791.50
Platinum Price Close 8-Apr : 1,810.90
Change : -19.40 or -1.1%

Palladium Price Close Today : 769.70
Palladium Price Close 8-Apr : 796.25
Change : -26.55 or -3.3%

Just the facts, ma'am. What says the scoreboard at week's end? The SILVER PRICE blew past everybody else with a 196.6c gain, or 4.8%. The GOLD PRICE gained less in a week of correction. The gold silver ratio fell 3.8%. Stocks and the US dollar were flat as Blundering Ben Bernanke's head.

STOCKS ended the week lower than they began, a net loss. This market has double-topped, and it's doubtful -- as doubtful as a hog learning table manners -- that stocks will go higher before they go lower. The Dow in Gold Dollars has worked down to the verge of support of the last six month's range. Today it closed at G$171.79 or 8.310 ounces of gold to buy the Dow. I won't even talk about stocks in silver, which this week fell from 304.93 ounces to buy the Dow to 289.98, another new low. These indicators are hinting that stocks are about to lose value sharply to silver and gold.

The US DOLLAR INDEX stole back today about 2/3 of what it lost yesterday. Watching the dollar the last few days has been almost as much fun as waiting for eggs to hatch. It has been chained in a tight range of 74.65 to 75 -- aww, be generous and call it 75.10. Can't move. This might show the dollar trying to begin bottoming, but if it closes below 74.25, it will sink like a safe pushed off the 17th floor.

Euro could not make any headway against this week's new intraday high at 1.4519, and once again might be making an island reversal. The pride of Japan, the Yen, gained this week at least back to the range it had traded in from November through March. Closed today at Y83.04/$ (120l.42c/Y100).

Nothing much remains to be said about gold. It set up what resembles an upside down head and shoulders from November through March, and broke out this past week through the neckline headed for at least $1,525, maybe $1,600. Y'all can argue with that if you want, but it will get you no further than arguing with a steam roller. Today alone the gold price rose $13.60 to $1,485.30 and in the aftermarket is trading $1,486.40. I checked out the 20 and 200 day moving averages and gold's position relative to those is NOT YET overbought, not at all. That whispers that gold can rise much higher.

Logic and sound trading strategy demand you buy (1) on a correction toward the bottom channel line, or (2) on a breakout. The gold price broke out, so buy.

Volatile SILVER has become manic. Not only did it rise 4.8% this week, it added 90.5c today alone to close on Comex at 4256.6c. In the aftermarket it rose to 4304.5c.

Clearly the SILVER PRICE is on some wild tear I can't quite parse, yet I checked its relation to the 20 and 200 day moving averages, and it has not yet reached the extreme overbought levels of previous peaks. That suggests the silver price can climb quite a bit more. If gold reaches $1,600 and the gold/silver ratio drops to 32, that brings us to $50 silver. Yet some time not too far distant there will come a correction. That's why I recommend locking in your silver profits IN OUNCES OF GOLD by swapping silver for gold now.

SILVER will go higher next week. Seasonal charts warn that some peak may lie close ahead.


Modern issue US commemorative $5 and $10 gold pieces carry no appreciable premium over gold. I bought some and want to move them on, so I can sell them at $372 for the $5 and $744 for the $10 Olympic commemorative. The gold $5 commem contains 0.2418 ounce of gold and the gold $10 contains 0.48375 oz, so I'm selling these at a 3.5% premium over their gold content.

I will sell lots of Seven (7) each $5 gold commems for $2,604 plus $25 shipping. A $10 gold counts as two $5 golds, so you can order one $10 and five $5s and that equals Seven $5s.

I have only forty-seven (47) of the $5s and nine (9) of the $10s. Once they are gone I cannot re-order at these prices.

Here are two other specials:

I have only Fifty-two each Netherlands ten guilders containing 0.1947 oz fine gold. I'll sell these in lots of Eight (8) coins at $299.50 each plus $25.00 shipping, or a total of $2,421. No re-orders or back-orders at these prices, which are 3.5% over melt.

In the back of the drawer were Seven only pre-1915 German 20 marks with 0.2304 ounces of gold each. I will sell this lot of seven for $354.50 apiece plus $25 shipping or a total of $2,506.50 (3.5% premium over gold).

Also hidden back there were 80 Swiss 20 francs and 90 French 20 francs. Twenty francs contain 0.1867 troy ounce of fine gold. I'll sell them at a 4.5% premium over gold or $290.00 each in lots of ten coins each plus $25 shipping for $2,925.00.

I also have a lot of Fifteen Italian 20 Lira, same 0.1867 troy ounce of gold, as a single lot for $4,375.00 with shipping.

We will not enter orders for less than the minimums shown above. You may order more than one lot, but not in increments of less than one lot. That is, you may order 8 Netherlands ten guilders or 16 or 24, but not 9 or 17.

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 $1,486.40. Ordering Instructions:

1. You may order only by e-mail to [email protected]

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

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 email.

4. If your order is filled , we will email you a confirmation. If you do not receive a confirmation, you 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 will 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. Next week several of us will be out of the office and so we will not make any shipments next week (18-22 April).

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.