Friday, October 21, 2011

The Silver and Gold Price Remain in a Bull Market, and Will Until Some Monetary Crisis Finally Brings Down The Fiat Money & Banking System

Gold Price Close Today : 1,635.10
Gold Price Close 14-Oct : 1,681.80
Change : -46.70 or -2.8%

Silver Price Close Today : 3117.3
Silver Price Close 14-Oct : 3214
Change : -96.70 or -3.0%

Gold Silver Ratio Today : 52.452
Gold Silver Ratio 14-Oct : 52.327
Change : 0.13 or 0.2%

Silver Gold Ratio : 0.01906
Silver Gold Ratio 14-Oct : 0.01911
Change : -0.00005 or -0.2%

Dow in Gold Dollars : $ 149.29
Dow in Gold Dollars 14-Oct : $ 143.13
Change : $ 6.17 or 4.3%

Dow in Gold Ounces : 7.222
Dow in Gold Ounces 14-Oct : 6.924
Change : 0.30 or 4.3%

Dow in Silver Ounces : 378.81
Dow in Silver Ounces 14-Oct : 362.31
Change : 16.51 or 4.6%

Dow Industrial : 11,808.79
Dow Industrial 14-Oct : 11,644.49
Change : 164.30 or 1.4%

S&P 500 : 1,238.25
S&P 500 14-Oct : 1,224.58
Change : 13.67 or 1.1%

US Dollar Index : 76.291
US Dollar Index 14-Oct : 76.607
Change : -0.316 or -0.4%

Platinum Price Close Today : 1,516.00
Platinum Price Close 14-Oct : 1,555.00
Change : -39.00 or -2.5%

Palladium Price Close Today : 617.00
Palladium Price Close 14-Oct : 626.00
Change : -9.00 or -1.4%

The GOLD PRICE yesterday rose late in the aftermarket to about $1,622. Time the US market opened today it was already at $1,635, and reached $1,648. Rest of the day $1,635 served as a floor. Comex closed at $1,635.10, up $23.20 (1.4%). Aftermarket is trading $1,640.95.

Looks like the GOLD PRICE has turned up for next week, maybe longer. Whether 'twill last is another question.

On Comex the SILVER PRICE rose 3% (90.7c) to 3117.3c, and advanced all day. Like GOLD, SILVER has made a short of upside down head and shoulder -- maybe. If it is, it points to a rise to 3450c or so, but all this hasn't completely unfolded yet.

The SILVER PRICE couldn't penetrate 3150c (there fell today's high), and if this excitement is anything more than a Friday drunk, it must clear that Monday and keep on marching.

Expect higher silver prices this week.

SILVER and GOLD remain in a bull market, and will until some monetary crisis finally brings down the fiat money and banking system. Don't listen to anybody who says otherwise, because they don't know 'Sic 'em!" from "Come here!"

Strange week, mostly held in suspension by Eurocrats' indecision about their bank solvency crisis. Oddly -- or maybe, not so oddly, all things considered in this world of confusion and illusion -- stock investors today appeared to believe that something will come out of this weekend's Euro-summit, although they are going into it with no plan and planning only to meet again soon to plan a plan. Don't sound like a plan to me, but I'm only a natural born fool from Tennessee, not a high-flying Eurocrat like Sarcophagus or Ferkel.

For the week, metals all lost ground while stocks gained - barely.

Stocks gained enough today to close in positive territory for the year (31 Dec 2010 closed 11,573. Once that happened, the buying panic spread like a bar fight and for the Dow gobbled up 267.01 points (up 2.31%) to close 11,808.79. S&P500 lagged not far behind, up 1.88% (22.86) to 1,238.25.

So the Dow cleared that 11,650 hurdle that had been stymying its progress. Dow will now most likely touch its 200 day moving average (DMA) (now 11,965). It could rally all the way to 12,300 WITHOUT changing the doom hanging over its head, only altering it from a jaws of death broadening top to a diamond top. Mercy, the Dow may rally into the end of the year, but that is no reason to buy it. Rather, that's a last chance to sell for those poor victims who still own stocks.

Did I mention that it's ridiculous to look at the European bank solvency crisis and conclude the Eurocrats will cure it this weekend? It's ridiculous.

STOCKS -- they are they Tyrannosaurus Rex of Investment Predators.

US DOLLAR INDEX was cold-cocked and fell below 77, down 68.3 basis points or 0.88%. That fractured the 76.60 support, and opens the road for the dollar index to visit its 200 DMA, now 75.87. Long as the dollar does not dramatically rupture that line, it will remain in rally mode.

Euro today closed 1.3896, up 0.87%. Euro still hasn't broken up through resistance at that lower boundary line of the channel it was defenestrated out of in September. Today closed right on the 50 DMA 1.3889. Will rise higher.

Somebody goosed the Yen sure enough today. It's 131.88 high was a new all time high, but it closed at 131.05c/Y100 (Y76.30/$1), plumb at the top of its trading channel. Yen wants to climb, but can't imagine the Nice Japanese Government Men letting it, since a higher yen would wound their exports so badly. Without exports, Japan is pretty much 280 million people looking for a job and waiting to starve.

Get ready for a 180 degree turn on gold, at least in the short-term. I looked at the chart this morning and LO! There's a large left shoulder (Tuesday), a head (Thursday), and the beginning of a shoulder above $1,635. It measures out a 50 point rise from $1,665, to $1,715, if I have identified it correctly. After that rise I expect more downside, but if gold can pierce $1,800 and hold its ground, then the tide has turned.

Now I know y'all mean well sending me those news articles about the TSA setting up roadblocks in Tennessee to search people in cars and in bus stations, but let me tell y'all something, and y'all write this down in your book. Until SOMEBODY says "NO!" they will keep on doing this stuff, and so far, none of y'all will say no. You'll let 'em search your car without a warrant because you want to finish your trip on time or your kids are with you or your wife has supper on the stove at home. Until y'all plant your feet square on the ground, get out of your car and lock it and refuse to have it searched for lack of due cause, and go to jail for a day or a week or a month and risk them beating you up if you have to because that's the only way you can enforce your rights, the TSA and the government will continue to ignore and steal your ancient rights, rights older than Magna Carta.

Ask any lawyer: without a Belligerent Claimant in Person, no rights exist. You have no rights you are not willing to enforce YOURself. No such thing as a Milquetoast Claimant In Person, begging government agents to please act nice and observe his rights. Hell will freeze over with ice six inches thick and icicles before that happens.

Did the British leave the colonies because the Americans asked 'em real nice? Somebody has to say "NO!" Till you're ready to do that, might as well get used to wearing that steel collar round your neck and pulling out your papers fast and respectful-like.

On 21 October 1922 Benito Mussolini took control of the Italian government and installed fascism in Italy. Why? Because not enough people said "NO!"

One hundred one years ago today, 21 October 1910, my father was born in Michie, Tennessee. He never met a stranger.

Y'all enjoy your weekend!

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 bubble has burst, primary trend down.

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.