Wednesday, August 10, 2011

Gold Price in a Parabolic Rise, and no Telling Where it will Stop

Gold Price Close Today : 1781.30
Change : 41.30 or 2.4%

Silver Price Close Today : 39.325
Change : 1.448 or 3.8%

Gold Silver Ratio Today : 45.30
Change : -0.641 or -1.4%

Silver Gold Ratio Today : 0.02208
Change : 0.000308 or 1.4%

Platinum Price Close Today : 1766.80
Change : 14.30 or 0.8%

Palladium Price Close Today : 725.95
Change : -1.80 or -0.2%

S&P 500 : 1,120.76
Change : -51.77 or -4.4%

Dow In GOLD$ : $124.40
Change : $ (9.12) or -6.8%

Dow in GOLD oz : 6.018
Change : -0.441 or -6.8%

Dow in SILVER oz : 272.60
Change : -24.15 or -8.1%

Dow Industrial : 10,719.94
Change : -519.83 or -4.6%

US Dollar Index : 74.64
Change : 0.030 or 0.0%

For those who say to me, "Well, why buy gold or silver? The government manipulates those markets." today offered a lesson exactly how much good manipulation does.

I doubt not that the Nice Government Men saw their opportunity after yesterday's FOMC statement to catch a bunch of people short stocks and the Plunge Protection Team dove in. They did, and the Dow ended up 429.92, 3.98%. Wow. And today the Dow lost 519.83 or 4.62% to close at 10,719.94. S&P500 did no better, losing 51.77 (4.4%) to 1,120.76.

'Tis possible to manipulate markets, but only at the margin and only for a short time. Otherwise, markets are simply too big to be forced against their primary trend. The trend will always wreak its vengeance.

Stocks have now reached support that stretches back to January 2010. The area from 9600 to 10,700 might stop the fall, but then again, it might not. This is the last train out for anyone holding stocks. You sell now, or watch them wither gruesomely over the next 5 years.

Stocks: they are the Vitamin D of Investment Vitamins, and the D stands for "deficiency."

US DOLLAR INDEX caught today, rose 3 silly basis points to 74.635. Euro fell 1.36% to 1.4175, while for no apparent cause today a couple of rating agencies declared that France's credit rating was still AAA. Soooo, why did you need to tell us that nothing had changed, unless somebody is suspecting that something has changed? Yen rose today to 130.10c/Y100 (Y76.8/$).

The GOLD PRICE rose 2.4% today, up $41.30 to $1,781.30. In the aftermarket it has risen another $20 to $1,801. Yep, it's in a parabolic rise, and, yep, no telling where it will stop. Nothing in today's chart even hints that gold's about to call a halt. It wants to go higher tomorrow.

The SILVER PRICE climbed up off yesterday 3700c bottom and never looked back. Should also climb again tomorrow. Lost 149.7c yesterday, gained 144.8c today to close Comex at 3932.5. Maybe, maybe Friday's 3750c and yesterdays 3700c formed a double bottom? To me silver appears to have more downside. Hard above at 3970c lies its 20 day moving average. How will it act there tomorrow? The SILVER PRICE has done nothing to gainsay or negate the downtrend begun five days ago, and must climb above 4229c to do so.

The economy and monetary system has reached a new stage of decay where its condition deteriorates faster and faster. Not world wide panic yet, but daily unthinkable milestones whiz by and are left behind: Greece defaults, US debt ceiling crisis, US debt downgrade, gold passes $1,700 then $1,800, stock market falls 500+ points a day. Oh, this will ease off, but the decay has ratcheted to a higher, faster level.

Y'all ought to remember that for a long time you can see bad things coming on the horizon, but they seem to linger there. Oh, you know they're coming, but you've got plenty of time. Then one day the fellow in the high-top boots and peaked cap comes to arrest YOU.

As I said, only way I know to stay out of bar fights is to leave the bar before the fights start.

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.