Thursday, November 10, 2011

The Gold Price "Must Hold" Support Is Now $1,740

Gold Price Close Today : 1758.90
Change : (32.00) or -1.8%

Silver Price Close Today : 3409.5
Change : (25.3) cents or -0.7%

Gold Silver Ratio Today : 51.588
Change : -0.552 or -1.1%

Silver Gold Ratio Today : 0.01938
Change : 0.000205 or 1.1%

Platinum Price Close Today : 1618.50
Change : -9.90 or -0.6%

Palladium Price Close Today : 649.40
Change : 4.40 or 0.7%

S&P 500 : 1,239.70
Change : 10.60 or 0.9%

Dow In GOLD$ : $139.79
Change : $ 3.81 or 2.8%

Dow in GOLD oz : 6.762
Change : 0.184 or 2.8%

Dow in SILVER oz : 348.84
Change : 5.85 or 1.7%

Dow Industrial : 11,893.86
Change : 112.69 or 1.0%

US Dollar Index : 77.60
Change : -0.326 or -0.4%

The GOLD PRICE lost $32 by time Comex closed it at $1,758.90 today, but it held on to that $1,750 after a low at $1,736.30. Good, but I reckon it will drop again tomorrow. Course, only a fool would say anything about gold right now, with all the world's NGM working to keep it down and a world wide financial blow up driving it up. Never mind, after all the smoke clears, the GOLD PRICE will still be headed higher.

$1,740 has now become the "must-hold" support.

The SILVER PRICE lost only 25.3c today to close Comex at 3409.5. Low came at 3322c, high at 3430c. GOLD SILVER RATIO actually fell today (silver was stronger than gold) to 51.588 from 52.140.

The SILVER PRICE has now worked itself into a position where it must hold about 3325, because there stands the 20 dma (3333c) and the rising trend line. Break that and it must fall a stout ways, maybe to 3000c. On the other hand (to sound like an economist) if silver can hold that line, the whole picture changes, and everything begins to look up.

Today's tale is quickly told. Same indecision holds sway in gold, stocks going nowhere (but dramatically), fiat currencies all sick, but the euro is sickest with the yen next.

I've been thinking about "innovation." I know that if you make automobiles, you've got to change the thing every year or people will stop buying it, no matter that it's all just a moveable sledge that takes you from one place to another and all that changing merely makes it more expensive and less reliable. Been thinking about "innovation" -- better word is "novelty" -- because I realize that I spend most of my time sending the same message, albeit in different words. There's a reason for that:

It's right. When it stops being right, I'll say something else. Till then, if y'all get bored with my saying pretty much the same thing, well, go listen to CNN or NPR or anybody on Wall Street who is always chasing novelty. To pick your pocket And let me know when they finally get it right. After all, I ain't nothing but a natural born durn'd fool from Tennessee.

US dollar index closed down 32.6 basis points (0.42%) to 77.60 but that don't mean spit in the wind. Clearly it has broken out through 77.4 resistance and will move higher. Clearly the euro (closed 1.3604, up 0.44%) has a future at vastly lower price, around 120, and just as clearly the Japanese Nice Government Men are fighting like hyenas to keep the yen from appreciating as money tsunamis out of the euro looking for a refuge.

Europe continues to dither. Rumors now about breaking the euro up into tiers of countries. Germany is the go-wheel in everything, with most to lose if the euro become the defuncto. After all, the EU and the euro has brought Germany what 300 years of war could not. Beginning to look like a "managed crisis", although I am certainly not making Germany the Bad Boy in all this. The managers are cosmopolites, louyal to no nation and no interest but their own.

Dow rose 112.92 points or 0.96% to 11,893.86 but remains beneath its 200 dma (11,975). S&P rose 10.6 (0.86%) to 1,239.70.

Stocks: better'n burning up $1,000 bills with a match!

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.