Gold Price Close Today : 1471.70
Change : 16.80 or 1.2%
Silver Price Close Today : 41.661
Change : 1.426 cents or 3.5%
Gold Silver Ratio Today : 35.33
Change : -0.834 or -2.3%
Silver Gold Ratio Today : 0.02831
Change : 0.000653 or 2.4%
Platinum Price Close Today : 1795.60
Change : 23.10 or 1.3%
Palladium Price Close Today : 773.05
Change : 9.95 or 1.3%
S&P 500 : 1,314.52
Change : 0.11 or 0.0%
Dow In GOLD$ : $172.56
Change : $ (1.77) or -1.0%
Dow in GOLD oz : 8.348
Change : -0.086 or -1.0%
Dow in SILVER oz : 294.88
Change : 0.24 or 0.1%
Dow Industrial : 12,285.15
Change : 14.16 or 0.1%
US Dollar Index : 74.69
Change : -0.291 or -0.4%
I don't get paid to worry, but I worry anyway. The GOLD PRICE performed splendidly today. By the time Comex locked the door gold had added $16.80 to close at $1,471.70.
So what am I worrying about? That is a fine first step to resuming a rally, but reached only the last high close at $1,473.40. What if it's a double top, made specially to confound and mislead me? If the rally is resuming, gold tomorrow will jump through $1,475.00, and must not fall below $1,455.
I will commit myself: gold will move higher tomorrow. There's too much steam under this move, BICBW.
The SILVER PRICE rose a jaw-dropping 3.4% today, up 142.6c to 4166.1. High came at 4219c. This makes a new high close for silver and a new low for the gold/silver ratio at 35.326.
Okay, I confess this is wilder than I can handle, stronger than a garlic milkshake, and I haven't the least clue how long it will run or where it will reach. Clearly gold should clear $1,500 and rise further. Silver might reach 4400c or 4600c, there simply are no yardsticks to measure this move. Sorry. However, the peak season is upon us and surely they will both have peaked and slowed down by mid or end May. Surely, BICBW.
Underlying all my thoughts is the conviction (there's a dangerous word) that this rally will power ahead substantially, and that today's closes do not constitute a double top in gold. Tomorrow will immediately and directly inform us, because if that gold drops below $1,455, the buying panic will become a selling panic.
Ain't this fun?
Watching the US DOLLAR today was like watching racing snails darting around the track. It keeps on creeping lower. Ladies and Gentlemen, 'tis not force majeure of the market driving it lower, 'tis the rotten Fed and the administration letting it fall lower. At 74.689 (down 29.1 basis points this day) the dollar stands smack on its last low. Once again today it tried to rally, actually reached higher than yesterday, (75.15 against 75.10), but again collapsed as yesterday. Time to fish or cut bait: dollar holds here or sinks to 74, then 70.70.
Face it: the administration and the Fed are depreciating your wealth and your currency to solve problems they created. Clever idea, balancing their mistakes on your back, Mushrooms.
Euro has struck a roadblock at 1,450. Uptrend is unbroken. Stands now at 1.4489. Yen penetrated its 200 DMA heading upward and now stands at Y83.44/$ (118.94c/Y100). Looks like the Nice Government Men in Japan drove it down a bit too far.
And if you tire of the snail race in the US dollar, move on over to the STOCK track. The mighty Dow rose 14.16 points to 12,285.15. The S&P500 -- that's the one with the lightning bolts painted on its shell -- gained 0.11 to 1,314.52. Basically that's about as much as a rounding error.
Stocks traded below the waterline all day, and only jumped up at day's end. Whoa! Whose fingerprints are those? Could they belong to the NGM?
On this day in 1912 the passenger liner Titanic, on its maiden voyage, hit an iceberg and began to sink. Widely advertised as unsinkable thanks to its advanced engineering, it sank anyway, taking 1,517 lives to the bottom. 700 survived. So much for trusting technology.
On this day in 1995 Burl Ives died. Y'all are probably too young to remember him, but he acted in hundreds of movies, usually with his guitar in hand. He was almost always fun.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
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© 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.