Thursday, September 01, 2011

Gold and Silver Prices Will Reach New Highs in September

Gold Price Close Today : 1,826.00
Gold Price Close 26-Aug : 1,794.10
Change : 31.90 or 1.8%

Silver Price Close Today : 4148.2
Silver Price Close 26-Aug : 4095.2
Change : 53.00 or 1.3%

Gold Silver Ratio Today : 44.019
Gold Silver Ratio 26-Aug : 43.810
Change : 0.21 or 0.5%

Silver Gold Ratio : 0.02272
Silver Gold Ratio 26-Aug : 0.02283
Change : -0.00011 or -0.5%

Dow in Gold Dollars : $ 130.12
Dow in Gold Dollars 26-Aug : $ 130.02
Change : $ 0.09 or 0.1%

Dow in Gold Ounces : 6.294
Dow in Gold Ounces 26-Aug : 6.290
Change : 0.00 or 0.1%

Dow in Silver Ounces : 277.07
Dow in Silver Ounces 26-Aug : 275.56
Change : 1.52 or 0.6%

Dow Industrial : 11,493.57
Dow Industrial 26-Aug : 11,284.54
Change : 209.03 or 1.9%

S&P 500 : 1,204.42
S&P 500 26-Aug : 1,176.80
Change : 27.62 or 2.3%

US Dollar Index : 74.541
US Dollar Index 26-Aug : 73.710
Change : 0.831 or 1.1%

Platinum Price Close Today : 1,854.00
Platinum Price Close 26-Aug : 1,832.70
Change : 21.30 or 1.2%

Palladium Price Close Today : 784.35
Palladium Price Close 26-Aug : 762.00
Change : 22.35 or 2.9%

Tomorrow afternoon I've got to help with Hoedown preparations, so I am sending out this weekly summary today. By the way, I will also be vacationing from 9 September through 18 September, and won't be sending commentaries then, either. I'll miss y'all, but I've earned a vacation and can't take y'all with me. will be providing daily price summaries like the above table during this time.

Y'all, the GOLD PRICE closed down today $2.50 on Comex at $1,826, but with a $15 range that sayeth not a word. It has held above $1,810, hugging onto $1,825 like it was a free teddy bear and gold was three years old. Everybody's loathe to take a position before the weekend.

As my old friend Tyrone Pulley used to say, "You put enough of that fertilizer out there and hit'll SOMETHIN' come up." I fell that way about next week. The fertilizer's all been spread through August, now September is about to break and all the Euro-crats will come back from their August vacation and "hit'll somethin' come up." You watch.

Wouldn't surprise me if part of that something wasn't much higher gold, through $1,840 and $1,850 and knocking on $1,900 again.

That SILVER PRICE was as sleepy as gold today, trading in a tight band from 4180c to 4113c, practically dead in the water. Comex lost 21.7c to close 4148.2c.

To confirm that it is rallying, silver needs to close through 4200c first, then 4400c. I remind y'all that silver remains in an uptrend since mid-May. Proverb says, "A trend in force remains in force until violated." 'Tain't been violated yet.

Save they close below $1,800 and 3900c, gold and silver will reach new highs in September. Get out of their way.

I reckon nobody much came to work today, or they left their ambition at home. Except for stocks falling out of bed and the dollar jumping, things were flat. Nobody wants to carry a position over the weekend.

'Tis instructive that the current Great Prevaricator has to scratch and bite with the Speaker of the House to be allowed to speak to congress. Instructive, too, that he will be the warm-up act for the first NFL game. I don't know what it will take, but I for one will be glad when the adults are in charge once again.

But ponder! What exactly could or might Bernard O'Bama say that would make a difference? That he will patty-pat at the problem with another stimulus that sends $1000 checks to everybody to buy big screen TVs with? That he has no clue what time zone he is in, let alone what hemisphere or what the US economy needs? Neither he nor the Bernancubus know as much about the economy or statecraft as a hog knows about a sidesaddle.

You have to say one thing for tyrants like Franklin Roosevelt: at least they don't dither. They walk right in the front door and stole the family silver, and dare you to say nay. This lot today, American and European, don't even rank as high as midgets. Mercy, they don’t rank as high as WARTS.

Let us think about currencies -- fiat currencies. Let's not think about them too long, however, lest the resulting nausea mess up our wastebaskets.

The US dollar today ALMOST broke out of the very tight range that has imprisoned it, 73.50 - 74.50. I say "almost" because it is now trading at 74.541, up 42.4 basis points (0.55%), but that's not quite a break out, now is it? Needs to close above the 50 dma (74.55 ) tomorrow at least, and push on toward the top of the larger range, 75.452.

The Bundestag, the German parliament, is balking about picking up the tab for these Euro sovereign debt bailouts. They'd better straighten up or their banker bosses will show them who they really work for. Also the catchily named Bundesverfassungsgeright, the German high court charged with protecting the German constitution, is hearing arguments that German participation in the European bail out fund is unconstitutional.

Let us say that this uncertainty casts a dark pall over the face of the euro's future, and that showed in the market today. The Franken-currency gapped down again, twinning with two days ago, but worse today. It gapped down plumb past its 20 dma (1.4360) and its 50 dma (1.4315) to close at 1.4260, down 0.83%. Owch. Were it a natural and not a manipulated market, it would sink like a lag bolt in a rain barrel all the way to the bottom. I hope those Nice Government are adept at catching falling knives.

Japanese Yen looked a mite peak├ęd today. Dropped to 130.0c/Y100 (Y76.92/$), down 0.4% and right on its 20 dma (129.97). Look for another samurai stroke from the NGM at the Bank of Japan.

After rising four days running the Dow today fell 119.96 points (1.03%) to 11,493.57. S&P lost 14.47 (1.19%) to 1,204.42.

Mercy, mercy! I'm just a natural born fool from Tennessee and I don't know nothing 'bout reading these charts, but looks like the Dow is having trouble piercing 11,700. And although I know nothing and claim to know nothing, that Dow chart looks like a completed A-B-C correction somebody told me about once. If it is, Dow will plunge through 11,236 (20dma) soon and then keep on falling so as to make your stomach flip. You will know that is NOT the case if the Dow can overcome 11,700. BWDIK?

STOCKS -- the greased rails on the slide to perdition.

WARNING AND DISCLAIMER. 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 short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.

Y'all enjoy your holiday!

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.