Gold Price Close Today : 1818.90
Change : 27.70 or 1.5%
Silver Price Close Today : 40.687
Change : 0.337 or 0.8%
Gold Silver Ratio Today : 44.70
Change : 0.313 or 0.7%
Silver Gold Ratio Today : 0.02237
Change : -0.000158 or -0.7%
Platinum Price Close Today : 1847.00
Change : 0.00 or 0.0%
Palladium Price Close Today : 757.00
Change : -19.00 or -2.4%
S&P 500 : 1,140.65
Change : -53.24 or -4.5%
Dow In GOLD$ : $124.91
Change : $ (6.76) or -5.1%
Dow in GOLD oz : 6.042
Change : -0.327 or -5.1%
Dow in SILVER oz : 270.13
Change : -12.66 or -4.5%
Dow Industrial : 10,990.58
Change : -419.63 or -3.7%
US Dollar Index : 74.21
Change : 0.532 or 0.7%
Fueled by unabated panic, the GOLD PRICE about 6:00 a.m. pushed through $1,800 and by 10:00 stood over $1,825. Backed off a bit till noon, then began advancing again. Comex closed at $1,818.90, up $27.70 and another new all time high. Top of this channel is someplace around $2,000. When I saw gold over $1,825, I just picked up the phone and bought a bunch. Sure, sure, that's chasing a market, but what else can you do when after a 2-day close over the old high it breaks into new high territory? You buy it, and close your hanging jaw.
Before I bought GOLD, though, I bought lots more SILVER. Not as strong as gold, but all it needed to do was break through that 4000c resistance, and there it stood at 4070c. Argue with the tape if you want to, but I don't. Yes, silver still has a tough row to hoe at 4100c and 4200c, but get the picture: it is FOLLOWING gold, not moving against it. Behold, something new under the sun!
Big trouble coming. Go back to my 29 July commentary and 16 August commentary and re-read the preparations listed there. Call me Chicken Little if you like, 'twon't bother me cause I've been vilified by experts, but take that list seriously. Remember those riots in London.
DID SOMEBODY MAKE AN ANNOUNCEMENT TODAY THAT THE WORLD IS CLOSING DOWN? I looked for some news item that might have sent the GOLD PRICE screaming and stocks careening. I couldn't find a single item that would launch a panic. Euro didn't even get beaten up badly until after New York Opened.
Whatever the catalyst, it threw US stocks down enough to qualify as one of the 20 or 30 biggest point moves ever, down 419.63 (3.68%- owch!) to 10,990.58 in Dowville, with the S&P500 swooning even worse by 53.24 points (4.46%) to 1,140.65. Talking heads are as stumped as I am, talking about "growing fears of global recession" on bad US economic data and more bad news from euro-banks.
IF YOU STILL HAVE STOCKS, GET OUT NOW! Put the proceeds into silver and gold, and take everything you've ever learned about "diversification," by which the experts all mean "buying different stocks" and throw it out in the carport and beat it to death with your ball peen hammer.
If stocks are the answer, the question must be, "How can I lose LOTS of money quickly without buying lottery tickets?"
Do any of y'all remember my saying not too long ago that stocks had lost more than 80% against silver and gold since 2001 and 1999, and would lose another 80% before stocks' bear market and metals' bull market ends? Do I remember that, or am I mistaken?
Today the Dow in Gold Dollars stands at G$124.91 (6.042 oz) and the Dow in Silver Ounces at 270.13. Y'all write that down someplace, and hide and watch.
Y'all want a real laugh? The Philadelphia Bank Index, Tell me what kind of strength that shows.
US Dollar index slapped 'em all in the face today by jumping 53.2 basis points, up 0.68% to 74.206, back from the bottom of the range to the middle. One wonders idly how many zillion dollars the Nice Government Men had to sell today to keep the dollar from rising through 75.50.
Mistake me not! Long term the dollar is a cooked goose, a dead duck, a terminated turkey, a poached peacock. But short term it has yet enough strength to pull in money in a panic. Proof? The yield on the 10 year treasury note (inverse of the note's value) dropped again today, nay, gapped down and plunged.
But hark! Is that a double top that the 30 year treasury bond is forming with the September 2010 high? Would that be a harbinger of great depths to come, of wailing, weeping, and gnashing of teeth as the Harbor of Dollar Refuge becomes the Maelstrom of Vanishing Value?
Euro, to put it almost politely, got the snot slapped out of it today Closed down 0.58% at 1.4341, gapped down in fact, and now resteth upon its 20 dma, preparatory to plummeting toward the Earth's Core. Yen remains suspended high above the earth at 130.57c/Y100 (Y76.58/$).
On Monday, 22 August I will be speaking for the Campaign for Liberty in Memphis at Jason's Deli, 3473 Poplar Ave. Suite 102, near Poplar and Highland. Speech should start shortly after 6:30 p.m.
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.
Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.