Monday, November 21, 2011

Gold Price Dropped Today, I'm Buying At Each Support Level Not Missing The Low

Gold Price Close Today : 1678.30
Change : 46.40 or 2.8%

Silver Price Close Today : 31.133
Change : (1.300) cents or -4.0%

Gold Silver Ratio Today : 53.907
Change : 3.591 or 7.1%

Silver Gold Ratio Today : 0.01855
Change : -0.001324 or -6.7%

Platinum Price Close Today : 1552.40
Change : -40.90 or -2.6%

Palladium Price Close Today : 589.40
Change : -16.70 or -2.8%

S&P 500 : 1,192.98
Change : -22.67 or -1.9%

Dow In GOLD$ : $142.23
Change : $ (7.18) or -4.8%

Dow in GOLD oz : 6.880
Change : -0.347 or -4.8%

Dow in SILVER oz : 370.90
Change : 7.19 or 2.0%

Dow Industrial : 11,547.31
Change : -248.85 or -2.1%

US Dollar Index : 78.08
Change : -0.200 or -0.3%

The GOLD PRICE kept on dropping today, losing $46.40 to close Comex at $1,678.30. (Remember it lost $54 last Thursday.) Once it broke Thursday's and Friday's $1,712 low, it plunged to $1,667.71 very quickly.

That brings us to the first support at $1,675. Today's low cut through the rising trend line, a leetle-bit, but closed above. If it breaks that line at $1,675, next strong support comes at $1,605, with some mushy support at $1,650. Below $1,605 lies $1,535 and $1,475.

Not predicting, just cataloging. The GOLD PRICE could stop at at any of those. You might also bear in mind that the 150 day moving average, now at $1,646.25, has frequently and regularly backstopped gold during this whole bull market. Certainly might catch there, too.

As I said, I'm not predicting. Right now, I'm averaging down, buying more gold whenever gold hits a new support level. I've been doing this too long, so I know how you pick your own pocket by holding out for "just a little lower price." Saying is, "Bulls get rich, bears get rich, and pigs get slaughtered." I have no ambition to become bacon.

The SILVER PRICE lost 130c on Comex and ended the day at 3111.3c. High came at 3219c, low at 3065c. Recall that Thursday's low was 3088c. That might be a double bottom developing, unless silver gainsays that suspicion tomorrow by trading below 3065c and staying there.

Below several possible turnaround targets present themselves. One is 3000c, home of the next to the last low. Another is 2843c, low before that. Then there is 2615c, the spike low in September.

All are possible, and my solution for myself is to buy more at each new support level. This tactic leaves me undisturbed and calm, because I expect SILVER and GOLD will roar back to triple or quadruple before this bull market ends, and I won't miss the low.

Today the GOLD/SILVER RATIO stands at 53.907. Swappers who earlier in the spring swapped silver for gold at realized ratio of 41.46:1 or lower can swap gold for silver now and realize a 30% or greater gain in silver ounces. Remember that market proverb about bulls, bears, and pigs.

We might as well have some fun today. None of us are getting out of here alive anyway.

On Friday with the Dow at 11,791 I said it had an initial (beginning the drop, just beginning) of 11,250. Today it logged half of that with a 248.85 drop, falling 2.11% and landing at 11,547.31. S&P500 lagged a tad, falling only 1.86% (22.67 points) to 1,192.98.

Today's dive takes the Dow below the 50 day moving average (11,533). Stop waiting for another rise toward 12,400, because it ain't coming.

Stocks: signal proof how good the yankee government is at managing the economy.

US DOLLAR INDEX today solidified its breakout Friday thru the descending trendline. Today it gained 19.5 basis points (0.25%) to close 78.256. Dollar need only remain above 78.10 to remain in the rally game. Higher dollar coming. Watch for it.

Japanese yen lost a minute 0.18% today to close at 129.96c/Y100 (Y76.95/$1). Where are those Nice Government Men when they're needed? Uppity yen needs chastising!

The Franken-currency, the euro, dropped 0.2% to 1.3497. Grind, grind, grind, it just keeps on grinding lower and lower toward its 1.2000 target.

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.