Wednesday, November 23, 2011

Gold Price Bull Market Continues, Use This Correction To Buy More Gold Cheap

Gold Price Close Today : 1695.90
Change : (6.50) or -0.4%

Silver Price Close Today : 3188.4
Change : (106.7) cents or -3.2%

Gold Silver Ratio Today : 53.190
Change : 1.525 or 3.0%

Silver Gold Ratio Today : 0.01880
Change : -0.000555 or -2.9%

Platinum Price Close Today : 1552.10
Change : -17.90 or -1.1%

Palladium Price Close Today : 587.25
Change : -15.80 or -2.6%

S&P 500 : 1,164.41
Change : -23.63 or -2.0%

Dow In GOLD$ : $137.51
Change : $ (2.04) or -1.5%

Dow in GOLD oz : 6.652
Change : -0.099 or -1.5%

Dow in SILVER oz : 353.81
Change : 5.00 or 1.4%

Dow Industrial : 11,280.90
Change : -212.82 or -1.9%

US Dollar Index : 79.09
Change : 0.822 or 1.1%

The GOLD PRICE reached up for that overhead $1,712 resistance but only got to $1,709.88. Low was $1,677.37, while the Comex closed $1,695.90.

This tells us little we didn't already know. It underscores gold's present weakness, and highlights importance of that $1,675 support. There is more support -- how strong I'm not sure) at $1,646.58, the 150 day moving average. Below that lies $1,605 support (last low) and 200 DMA at $1,591.

Five day chart clearly shows the SILVER PRICE peaked yesterday at 3303, eased off, then fell steeply in overnight trading. High today was 3262, low at 3127.5c, while Comex closed at 3188.4, down 106.7c. Support now stands at 3125c, but the issue will be settled at 3065c - 3000c. Both 2850 and 2600c are possible targets.

The bull market in GOLD and SILVER and the bear market in paper currencies and stocks continues. Debt crisis emphasizes and examples all the problems with maintaining a paper currency, and continue to confirm our suspicion governments can only inflate. Use this correction to buy more silver and gold on the cheap.

Germany suffered a "disastrous" bond sale today, puffing up fears that the go-wheel of the European Economy might itself be threatened by the debt crisis. The German debt agency couldn't sell almost half of a 6 billion euro bond sale -- no bids. That pushed Germany's cost of over-ten-year borrowing above the US for the first time since October. (paraphrased from a Reuters report.)

It gets worse. Belgian government's deal with France to bail out the bank Dexia for $120 billion is unravelling. Fitch Ratings reported that France was bumping up on limits that threaten its AAA credit rating.

The Germans won't budge toward taking on the debts of all Europe, and the banks won't write off the debt, and the junior Euro countries can't stop spending without facing revolutions. No statesman appears to cut this Gordian knot, so they keep on dithering at loggerheads, the most surely fatal response in a crisis.

To all this fun the euro responded by gapping down 1.38% to 1.3325. It's nearing the last low at 131.64. When it breaks that, well, imagine one of those gigantic slides at a fun park that somebody has rubbed down with lard, and you'll get a hint of how fast the euro will drop.

The yen dropped 0.53% to 129.22c/Y100 (Y77.39/$1). One must suspect that the yen had official help doing that.

US dollar index punched through 78.50 resistance and rose 82.2 basis points (1.06%), surmounting the round number 79 to trade at 79.09. Last high (October) reached 79.84, and that's the last resistance standing in the dollar's road. A close above that sets it flying. Of course, Bumbling Ben may decide to intervene before that happens. Funny, although nobody admits it, currency markets are playing out just like they did under the competitive devaluations during the 1930s, and, I suspect, for much the same reasons.

I am writing this at 13:16 Central time, before the market closes at 15:00 my time, but there's not much doubt which way stocks will close today, since they're already swirling the drain. Dow has fallen 212.82 (1.85%) to 11,280.90, right at my 11,250 target. S&P500 is down 23.63 (2%) at 1,164.41. Good chance Dow will bounce from here, but if it slices through 11,200, say Good-bye! to another thousand points.

Y'all have a happy and blessed Thanksgiving, and remember that the FIRST American Thanksgiving was not celebrated in New England in 1621, but farther south at Berkeley Plantation in Virginia on 4 December 1619.

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.