Friday, November 11, 2011

The Gold Price Rose Again, Remember If Gold Closes Above $1,800 For Two Days Don't Wait Just Buy

Gold Price Close Today : 1,787.50
Gold Price Close 4-Nov : 1,755.30
Change : 32.20 or 1.8%

Silver Price Close Today : 3467.1
Silver Price Close 4-Nov : 3407
Change : 60.10 or 1.8%

Gold Silver Ratio Today : 51.556
Gold Silver Ratio 4-Nov : 51.520
Change : 0.04 or 0.1%

Silver Gold Ratio : 0.01940
Silver Gold Ratio 4-Nov : 0.01941
Change : -0.00001 or -0.1%

Dow in Gold Dollars : $ 140.54
Dow in Gold Dollars 4-Nov : $ 141.12
Change : $ (0.58) or -0.4%

Dow in Gold Ounces : 6.799
Dow in Gold Ounces 4-Nov : 6.827
Change : -0.03 or -0.4%

Dow in Silver Ounces : 350.52
Dow in Silver Ounces 4-Nov : 351.72
Change : -1.20 or -0.3%

Dow Industrial : 12,152.93
Dow Industrial 4-Nov : 11,983.24
Change : 169.69 or 1.4%

S&P 500 : 1,263.73
S&P 500 4-Nov : 1,258.23
Change : 5.50 or 0.4%

US Dollar Index : 76.906
US Dollar Index 4-Nov : 76.937
Change : -0.031 or 0.0%

Platinum Price Close Today : 1,643.20
Platinum Price Close 4-Nov : 1,633.50
Change : 9.70 or 0.6%

Palladium Price Close Today : 660.95
Palladium Price Close 4-Nov : 656.65
Change : 4.30 or 0.7%

The GOLD PRICE rose again, $28.60 or 1.6%, to close at $1,787.50. For the week it's up only 1.8%, after falling Wednesday and Thursday. Now the GOLD PRICE has come plumb back up to the real breaking point at $1,800. If gold can stay above that mark for two days, then plainly it is rallying again and y'all better buy it. A fall below $1,740 turns gold down.

I'm watching just like y'all. It can go either way. If those two fixers in Greece and Italy fail to fix, the euro crisis will erupt again and pull gold skyward. Watch out for that.

The SILVER PRICE worked out like gold this week, with highs Monday and Tuesday dropping off into Wednesday and a Thursday bottom. Once it climbed above 3400c again, it shot up today to a 3479.7c high. Comex SILVER PRICE kept most of that gain, closing up 57.6c at 3467.1c. Silver could rally to 3680c and still break down.

Silver's Death Cross. A so-called death cross occurs when the 50 day moving average crosses below the 200 day moving average. Actually, in stocks at least, the death cross isn't as deadly as most people think.

Certainly, the death cross turns the market's momentum down, but in silver it hasn't amounted to much during this bull market. Out of six death crosses, three began insignificant declines and one saw silver rise. In the last two cases (2007 and 2008) silver dropped 34 and 50 days respectively by 13% and 45%. There you have it, from the sublime to the ridiculous. Death cross MIGHT mean something, but probably not.

Market has nearly changed my mind and persuaded me NOT to expect another leg down in SILVER and GOLD. Remember this: if gold stays above $1,800 for two days, stop waiting and BUY.

Dollar index stayed flat, stocks edged up, as long as you ignore their performance during the week. Most markets remained range bound but terrorized by the European bank solvency crisis.

Y'all ponder a moment Mr. Lucas Papadimos called in to fix Greece. Note that he walks onstage only for an "interim" gig, to get the fix passed and then has promised to exit, stage left or right.

'Tis always instructive to look at fixers' backgrounds and connexions. From 1994 through 2002 he was governor of the Bank of Greece, and from 2002 to 2010 VP of the European Central Bank. Wait? Doesn't that mean that he was the Greek central bank head EXACTLY when the Greek government and Goldman Sachs were jimmying the books so Greece could pass the test and get into the euro? Did he object at the time, trained economist as he is? I forget.

Doesn't that also mean he was working at the ECB when he euro was beginning to unravel? Do y'all remember what solution he put forth?

Trained at the Massachusetts Institute of Technology, and taught economics at Columbia University. Whoops! Looky here: he was also senior economist at the Boston Federal Reserve in 1980. From 2002 to 2010 he worked with ECB head Jean-Claude Trichet, who fouled the euro's nest, did nothing to clean it up, then retired.

Whoa! What's this! What a coincidence! What a surprise! Since 1998 Papadimos has been a member of the Trilateral Commission. (What's that? A club that specializes in triangles? Trigonometry?) Creeping Conspiracy Theories! This fellow has enchufe -- connexions.

Friends, this natural born fool throws an eye over all that and the words "Establishment Fixer and Hatchetman" spring unbidden to mind. Is this the Judas goat who will lead Greece into slavery to the banks for the next 100 years? It's a fix, all right.

Shucks! Did I forget to mention the Italian fixer, Mario Monti? Economist, did graduate work at Yale, was a professor and chairman of a think-tank (where they put smart people into an oxygen-deprived tank to see what really stupid thoughts they come up with), and -- WHOOPS! I almost forgot to mention that he is European CHAIRMAN of the Trilateral Commission and a leading member of the Bilderberger Group. He tops off that foaming resume with stints as an international adviser to Goldman Sachs and The Coca-Cola Company. He is also a former European Commissioner for "Internal Market, Financial Services and Financial Integration, Customs, and Taxation." When he's not doing all that, he hobnobs with the likes of Jacques Delors and Daniel "Danny the Red" Cohn-Bendit in the Spinelli Group, founded to force further centralization on the European Union.

"Fix" doesn't adequately describe this one. Lawsy mercy! The cosmopolites are sending in the Big Guns. They're scared

One is tempted to conclude that this is all a "managed crisis," managed to murder the rest of EU member states sovereignty and independence. and to harvest their middle class. WHOA! Y'all don't tell anybody

I said that. They're liable to put me in Bilderberger Jail for telling off on them.

This is fun, but I need to talk about markets today.

US dollar index took a mysterious hit -- no Nice Government Men involved in that, I'm sure -- dropping 83.7 basis points or 1.08% to 76.906. That doesn't really damage anything, just carried the dollar back to 76.80 for a final kiss good-bye before it takes off rallying.

The Franken-currency, the euro, rose smartly today, up 1.05% (like the dollar fell 1.08%) to 1.3753. As yet that's a meaningless as a sidesaddle is to a hog. Still leaves the euro beneath the May-September trading channel, under the downtrend line, and under the 20 and 200 DMAs. Look for the euro at 1.2000.

Japanese yen rose 0.7% to 129.69c/Y100 (Y77.11/$1). Altho the NGM sliced its legs off last week, the yen has grown them back and today closed above its 20 DMA.

Stocks rose 2.18% today (259.14) to take the Dow to a 12,152.93 close. S&P500 ended at 1,263.73, up 24.03 (1.94%).

I'll just go on and admit that 5 day Dow chart presents me with a deep mystery. It looks kind of like an upside down head and shoulders reversal pattern, but usually a market posts that only after a decline, not at a peak. Whoops! That might make it a DOUBLE TOP instead, with peaks at 12,150 on Tuesday and Friday.

Misery, pain, wailing, moaning, and gnashing of teeth await stock investors. Flee while time remains!

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.