Thursday, April 21, 2011

Silver Price Up 8.2% in One Week - Gold Price Closes at 1503.20

Gold Price Close Today : 1,503.20
Gold Price Close 15-Apr : 1,485.30
Change : 17.90 or 1.2%

Silver Price Close Today : 4606.2
Silver Price Close 15-Apr : 4256.6
Change : 349.60 or 8.2%

Gold Silver Ratio Today : 32.634
Gold Silver Ratio 15-Apr : 34.894
Change : -2.26 or -6.5%

Silver Gold Ratio : 0.03064
Silver Gold Ratio 15-Apr : 0.02866
Change : 0.00198 or 6.9%

Dow in Gold Dollars : $ 171.98
Dow in Gold Dollars 15-Apr : $ 171.79
Change : $ 0.19 or 0.1%

Dow in Gold Ounces : 8.320
Dow in Gold Ounces 15-Apr : 8.310
Change : 0.01 or 0.1%

Dow in Silver Ounces : 271.50
Dow in Silver Ounces 15-Apr : 289.98
Change : -18.47 or -6.4%

Dow Industrial : 12,505.99
Dow Industrial 15-Apr : 12,343.16
Change : 162.83 or 1.3%

S&P 500 : 1,337.38
S&P 500 15-Apr : 1,319.68
Change : 17.70 or 1.3%

US Dollar Index : 74.096
US Dollar Index 15-Apr : 74.873
Change : -0.777 or -1.0%

Platinum Price Close Today : 1,816.50
Platinum Price Close 15-Apr : 1,791.50
Change : 25.00 or 1.4%

Palladium Price Close Today : 768.85
Palladium Price Close 15-Apr : 769.70
Change : -0.85 or -0.1%

Our office will be closed to observe Good Friday, Easter, and Easter Monday. We will return on Tuesday, 26 April.

Yet another week to stretch your credulity: the SILVER PRICE up 8.2%, the GOLD PRICE up 1.2%. No, those are not typos. All else besides seems anemic.

What has come clear this week? That Bernard O'Bama and Blundering Ben Bernanke are destroying the dollar, yes, stringing it up by the hooves, slitting its belly, and gutting it. Had I been a fly on the wall, I could now report when the decision was made in the Bushite administration to depreciate the dollar, and when Bernard and Ben decided they would fix the economy by eviscerating the dollar. Or mayhap there is some deeper conspiracy, some destroy the dollar and replace it with the Bongo or whatever Frankenstein currency our Great Ones desire. This much is clear: they balk not at stealing the wealth of every American by depreciating the dollar.

What loosed this tirade? US DOLLAR INDEX today dropped 27.2 basis points to 74.096, down 0.35% and most critically, through the Dec 2011 low at 74.23. Next logical target is 71.25, maybe the 2001-2008 low at 70.70. As yet the chart signals no turnaround.

The moldy euro reacted by making a new high for the move at $1.4542. Yen gapped up to Y81.83/$ (122.2c/Y100).

Did y'all ever walk through a house of mirrors at a fair? Remember how the mirrors distort everything, some make you skinny, some fat, some make your head tiny and your body huge? That's how the stock market makes me feel. No economic outlook is pushing it higher, no fundamental strength, yet it powers higher, driven by mysterious forces with the initials NGM. Clearly, they have taken over the Potemkin stock market to cast before the mushrooms' eyes the illusion of prosperity.

It is never a smart idea to mock reality, because reality always has the last word. The stock market is riding a wave of new money and government manipulation. This will end badly.

Investing in stocks is like substituting oven cleaner for Wildroot Hair Oil. It won't make your hair shine and you'll have to part your scalp.

SILVER and GOLD PRICES are just about as crazy. The SILVER PRICE up 8.2% in one week? What's bad about this? Y'all are going to start expecting it all the time, and this is not a normal move. It is NOT different this time, and it never is.

What is it then? It is a bull market in a fiercely strong upwave, and all that has been accelerated by Ben Bernanke's Bundles of Bucks. Yet I am not pointing to its end, because the GOLD PRICE could reach $1,600 and the SILVER PRICE 5000c. Seasonal highs almost without exception occur before mid-May, and June, July, August, and September have not for the last eleven years shown any high.

And if some goof tells you silver and gold prices are "in a bubble," just smile and don't squander any words enlightening his darkness. Compared to the 1980 peaks, silver and gold prices are hardly moving. No, I am not joking, and have the charts to prove it. The precious metals bull market has AT LEAST 3 to 10 more years to run, and silver may nearly quadruple from here while gold rises another four times, too.

Here's what makes trading or investing so hard: you have to look at the sturdy present and envision the unseen future. At its 400c low, who could imagine silver at 4600c, over 11 times as high? A few did.

In the same way, you must look at the markets everyone is panting after and envision them when the fickle crowd has cast them aside. Think "real estate." "Beanie babies." "Tech stocks."

TODAY the gold price hammered clean through $1,500 resistance to close at $1,503.20, up $4.90. The real barrier here is $1,505 (as $1,405 was earlier). When gold breaches that breastwork, probably next week, it will shoot higher still and you will drop quoting it in the fourteens and get used to quoting it in the fifteen hundreds.

GOLD's short term chart has a wedgey look I don't like, so next week might see some correcting before bursting through $1,505. As long as gold remains above $1,490 it will continue rallying.

SILVER rose 159.7c today to close at 4606.2c. It's following a pattern of breaking into new high ground during the day, then adding 30 - 50c in the aftermarket. Right now it's trading 4664.

The only argument against silver right now is its own success. Its rise is looking more and more parabolic, and that usually signals the end of a move. It's more overbought than sushi at a tom cat convention. I confess, there's not much way to predict where it will run, or where it will stop, but the wilder it gets, the worse will be the eventual hangover.

Still, as long as silver remains about 4500 or 4550c, it will keep on raging. That 115c discount on the wholesale buy side of US 90% silver coin leaves me very antsy.

On this glorious day in 1836 the Republic of Texas made good its independence by defeating the army of Santa Anna at San Jacinto.

Y'all enjoy your Easter holiday.

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.