Tuesday, August 30, 2011

While We Have Our Eye's on One Dollar Moves, Silver is Planning to Triple, Gold to Double and More

Gold Price Close Today : 1826.70
Change : 38.20 or 2.1%

Silver Price Close Today : 41.398
Change : 0.852 or 2.1%

Gold Silver Ratio Today : 44.13
Change : 0.015 or 0.0%

Silver Gold Ratio Today : 0.02266
Change : -0.000008 or 0.0%

Platinum Price Close Today : 1855.50
Change : 31.50 or 1.7%

Palladium Price Close Today : 773.50
Change : 17.35 or 2.3%

S&P 500 : 1,212.92
Change : 2.84 or 0.2%

Dow In GOLD$ : $13,081.81
Change : $ (277.82) or -2.1%

Dow in GOLD oz : 632.832
Change : -13.439 or -2.1%

Dow in SILVER oz : 27,923.93
Change : -586.26 or -2.1%

Dow Industrial : 1,155,995.00
Change : 20.67 or 0.0%

US Dollar Index : 73.98
Change : 0.256 or 0.3%

The GOLD PRICE baffled everyone today by rising $38.20 on Comex and closing at $1,826.70. It's now trading at $1,839.10, but nobody -- least of all me -- seems to know why, other than, "Somebody's buying it."

GOLD is pounding hard on that $1,850 ceiling, or it is tracing a double top with last Friday at $,1850. First important support stands at $1,780. Overhead the SILVER PRICE needs to barrel through $1,850, and soon, or admit to beginning a longer correction.

I am blowing hot and cold out of both sides of my mouth -- like a parricide throwing himself on the mercy of the court because he's an orphan -- because although gold's past 10 days' performance gives it a downward bias, I have been consistently UNDERestimating gold's performance. If it closes higher tomorrow I will admit it is rising again and hop aboard.

The SILVER PRICE has also beaten me up lately. Friday, yesterday, and today the SILVER PRICE has traded in a range of roughly 4025c to 4150c. This patter either marks a top or a continuation (a breather before rising higher). SILVER actually looks more likely to rise than GOLD. Last week's correction took it nearly to its 50dma, and set up what might be another move up. Ratio rose today, but remains equivocal.

Down below the SILVER PRICE needs to hold 3976c, while up above it must cross 4200c, then 4400c to prove anything at all.

All this is just dithering about what tomorrow might bring, but the long term outlook has not changed. While we have our eye's on one dollar moves, silver is planning to triple, gold to double and more.

These markets are not suitable for shallow pockets or the impatient.

Stocks stalled today at 11,600, unable to punch through resistance there. Better shoot the general in charge and bring out another. Dow needs some new energy breach 11,600.

Dow closed today up a nothing 20.7, a jiggle, to 11,559.95. S&P waddled right along side, up 2.84 to 1,212.92. Temporarily momentum is up because day before yesterday stocks closed above their 20 day moving average. Still, that needs to be confirmed by a continuing advance and a close over the 50 dma, now at 11,926.

Here's what I don't like about the US Stock Market: a real stock market has an economy behind it. The US stock market doesn't, at least, not one that is anything grander than a filmy veil hiding the ugliest bride you can imagine. Somebody's getting fooled.

Stocks -- they are the sow behind the propaganda lipstick.

Watching currencies -- all of 'em -- is like being dragged to your child's fiddle recital. Some of the children are getting it, but up steps one or two who are wasting their parent's money shamefully and would be better off being taught how to do something useful like changing tires or laying asphalt. Y'all know what this is like. The performance is painfully bad, so bad you don't even lean over to your wife and giggle in her ear, because the spectacle is so embarrassing for everybody you'd be ashamed to do that.

Anyhow, the US dollar index rose 25.6 basis points today, a magnificent 1/3 of 1%, to 73.977. More meaningless movement within a narrow range, before a rally which will probably proceed a drop to 39 [sic] or so. Yesterday the dollar defended and validated support above 73.40. Wow. That leaves me so excited I'm not sure I can stay awake.

Then there's the euro. Yesterday it traded to the top of its narrow range (high 1.4546), then today gapped DOWN to close at 1.4443, down 1/2%. Euro has a great future as an oddity of history. Yen remains close to the top of its range, held down only by the mortification of the Japanese Nice Government Men.

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.