Wednesday, August 03, 2011

You Will Make a Big Mistake Waiting to Buy Silver or Gold

Gold Price Close Today : 1663.40
Change : 21.50 or 1.3%

Silver Price Close Today : 41.747
Change : 1.666 or 4.2%

Gold Silver Ratio Today : 39.84
Change : -1.120 or -2.7%

Silver Gold Ratio Today : 0.02510
Change : 0.000686 or 2.8%

Platinum Price Close Today : 1781.80
Change : -13.70 or -0.8%

Palladium Price Close Today : 795.50
Change : -31.90 or -3.9%

S&P 500 : 1,260.34
Change : 6.29 or 0.5%

Dow In GOLD$ : $147.84
Change : $ (1.55) or -1.0%

Dow in GOLD oz : 7.152
Change : -0.075 or -1.0%

Dow in SILVER oz : 284.97
Change : -11.10 or -3.7%

Dow Industrial : 11,896.44
Change : 29.82 or 0.3%

US Dollar Index : 73.98
Change : -0.533 or -0.7%

Today's question is, why did the PLATINUM PRICE drop 3.9% on a day that the SILVER PRICE rose 4.2%? Those contradictions unappreciated can come back to leave you puking in the wastebasket.

Been cogitating, and am beginning to conclude that markets did --after an initial misapprehension -- react properly to raising the debt ceiling and the Greek bailout. What do both events promise, nay, guarantee? Much more inflation. What will inflation do to stocks? Wreck them. What will inflation do to silver and gold? Drive them wild.

I reckon logic sometimes triumphs, even if it takes a few days.

The GOLD PRICE reached another new all-time high today, touching intraday $1,675 and closing the doors at Comex up $21.50 to $1,663.40. GOLD has reached the top of its trading channel so will probably bounce off that and correct a few days. Yet it will return to batter at the ceiling again. Point and Figure chart gives a $2,060 (Two thousand Sixty U.S. dollars) target.

The SILVER PRICE is nearing the top of its long term trading channel which it will strike about 4350c. Today it gained 4.2% or 166.6c to end its day on Comex at 4174.7c. Merciful heavens! Probably a little correction will ensue with silver, too, having run up two dollars in two days. New support is now 4100c. New resistance 4200c.

Any breakout thru the top trading channels, long standing trends like these, leads to an explosion. You literally have to double the channel when that happens. A little more likely here is at least a temporary rebound downward off those lines, even if silver and gold intend to penetrate them soon.

A GOLD PRICE close above $1,675 would whisper that some huge crisis is brewing behind the scenes, huge on the scale of fall 2008.

You will make a big mistake waiting to buy silver or gold. Huge. Yes, we may see a sizeable correction, but we have entered the wild stage of a bull market. Y'all can't even imagine how much wilder it will get.

Stocks recovered just enough to pull their tattered rags about their naked, bruised body and hide their shame. Raggedy, raggedy day for stocks, most of it spent underwater, slapped back when they tried to rally, then eeking out a close 29.82 points higher or 1/4 of 1% at 11,896.44.

Way down below 10,700 has a target painted on it. Maybe lower.

S&P 500 today gained 6.29 points or 1/2 of 1% to close at 1,260.34.

If you are one of those procrastinating putter-offers still clutching the delusion of a come-back to your breast, now would be a good time to drop the delusion, stamp on its face with your brogans, sell those stocks, and get out of harm's way.

Stocks -- to the investment question of, "How do you feel today?" they are the answer, "Flu, food poisoning, and chiggers."

US DOLLAR INDEX fell thru 74 a bit -- down 53.3 basis points to 73.98 -- but remains in this protracted bottoming process. Won't resume its downward progress for a while.

Euro rose today to close at 1.4322, up 0.91% and thru its 20 and 50 dmas. I'd buy shares in a lottery ticket before I'd buy euros. Japanese NGM are trying to edge the yen down off its uppity new high.

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.