Wednesday, June 29, 2011

How to Look for the Safest Place to Buy Gold and Silver

Gold Price Close Today : 1509.90
Change : 10.20 or 0.7%

Silver Price Close Today : 34.750
Change : 1.112 or 3.3%

Gold Silver Ratio Today : 43.45
Change : -1.133 or -2.5%

Silver Gold Ratio Today : 0.02301
Change : 0.000585 or 2.6%

Platinum Price Close Today : 1725.40
Change : 29.30 or 1.7%

Palladium Price Close Today : 753.05
Change : 12.10 or 1.6%

S&P 500 : 1,307.41
Change : 10.74 or 0.8%

Dow In GOLD$ : $167.87
Change : $ (0.12) or -0.1%

Dow in GOLD oz : 8.121
Change : -0.006 or -0.1%

Dow in SILVER oz : 352.85
Change : -9.50 or -2.6%

Dow Industrial : 12,261.42
Change : 72.73 or 0.6%

US Dollar Index : 74.38
Change : -0.425 or -0.6%

Those dead cats SILVER and GOLD PRICES made hay today (owch -- those two metaphors don't exactly mix, do they?). The SILVER PRICE rose 111.2c to 3475c while the GOLD PRICE added $10.20 and closed Comes at $1,509.90.

What does this change? Not much. Gold remains below its 20 DMA ($1,529.03) and 50 DA ($1,519.92), so momentum remains down. Likewise silver is floating below its 20 dma (3573c) and 50 DMA (3793c). Both dropped swiftly for three days, so no surprise that after skidding to a stop on the fourth day that they rally on the fifth. Yet one day doth not a trend change make.

Here's what I'm looking for, the safest place to buy. It's not always identifiable, but when you catch it your heart soars. Market moves to a new low, rises, then falls back but not quite as low as the earlier low. That is the "final kiss good-bye" that tells you the market has found its feet, stood up, and turned around. Suppose the SILVER PRICE rose to 3600c,then fell again to 3375c but no further. That would probably constitute that final kiss good-bye. Whoa! Those aren't numbers I'm looking for, just an example.

Personally, I expect silver and gold will make lower lows still, but I'm growing a mite antsy. Gold/Silver Ratio is TRYING to rise, but has made only marginal new high. 200 DMA stands above at 46.19 from today's 43.45. New lows in silver and gold will push that ratio higher.

STOCKS performed more raggedly today. Dow rose only 72.73, up 0.6% to 12,261.42. S&P gained 10.75 (0.83%) to 1,307.41.

Dow's high today appeared at 12,284, at the 12,300 resistance area. Today's action suffices to clear that lesser resistance at 12,200, and now the Dow has pierced the downtrend line. That doesn’t dispose of all questions, since often a market will hit or even pierce a downtrend line, then fall back. A second days close above the line usually suffices to prove a rally genuine.

If I had to guess what stocks are doing, and I don't but I always do anyway, I'd say they are tracing out a head and shoulders, right shoulder at 12,391, head at 12,876, and left shoulder a-building and peaking somewhere in between, then an enormous plunge.

Other intriguing numbers: 50 day moving average at 12,369, but horizontal resistance lurks nearer 12,400-12,450. Momentum indicators have unarguably turned up, plenty of room to move before becoming oversold.

Stay away from stocks. They are the greasy flattop of Investment Haircuts.

Humpty Dollar sat on a wall.

Humpty dollar had a great fall.

All O'Bama's horses, and all Ben's men

Will never put Humpty dollar together again.

In today's trading dollar cracked the 75 support and tumbled 42.5 basis points (0.6%). Maybe that's the last of it's decline (it looks ripe), but still looking at a longer term chart in 2009-2010 the dollar index needed from April to February to complete a bottom, that is, fall, hit bottom, and rise to the level where it began.

Dollar index's 50 DMA is now standing at 74.88, not too far from today's close, so it might hold there. Bottoming is frustrating with the dollar, but the trend since the May low has been higher.

My mother, God bless her, was a worrier. When I was a kid she was always worried we'd knock a tooth out or lose and arm or a leg or an eye. When you walk to the other side of that fear, it shrinks to nothing. I've known lots of people who lost teeth or arms or even legs or eyes who had a right happy life, thank you very much. Bad things happen, you swallow them best you can, and go on, instead of wasting all your life worrying about what might happen. And often those things you think were the very worst possible turn out blessings.

I think Ben Bernanke and all the rest of those central bank shills are like my mother. They're all worried about losing a tooth -- JP Morgan, Deutsche Bank, BNP. Shoot, I say the world economy might look better smiling at us through a gap of missing banks. Fact is, those teeth are so rotten it would make all the world feel better to get 'em pulled. Let 'em go, let 'em go, won't be the end of the world.

Yet in Greece today the parliament passed the austerity measures to save that bad tooth (the big banks that hold their bonds) to the tune of rioting outside. Ben, Ben, just let that tooth go!

Euro rose a little, 0.4%% to 1.4435. Yen rose 0.45% to 123.86c/Y100 (Y80.74/$). No big change.

More on sugar: it makes you fat, because it makes you hungry. I tested that proposition with our hogs. Hogs sometimes get finicky and fall off their feed. Thinking about sugar making them hungry and making them eat more, I just added some dried molasses to their food. They plumped up like they'd been sucking on an air hose.

And don't think that swapping artificial sweetener for sugar changes anything. That enrages the hunger more.

That sugar is like whiskey. Tastes good, but it'll bite you.

Y'all will appreciate this. Somebody sent me link to the listing for my 1986 novel, Heiland. Must be a rare book cause somebody's offering a used copy for $66! Listen, I have a couple of hundred copies in stock which I will sell at $10 each postpaid. You can order at or send me an email with your name and address and I'll send a copy and bill you. Heiland is a novel of the future where fascist government and corporations are one, clashing with men determined to be free. If you're overseas, add US$5 for shipping. If you want to pay with 90% silver coin, send me four (4) each pre-1965 silver dimes, but don't clown around and send me four cupro-nickel sandwich dimes minted after 1965. I WILL check the dates.

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.