Tuesday, November 22, 2011

Silver and Gold Price Are In a Routine Correction In a Bull Market, Keep Averaging Down

Gold Price Close Today : 1702.20
Change : 23.90 or 1.4%

Silver Price Close Today : 3294.8
Change : 183.5 cents or 5.9%

Gold Silver Ratio Today : 51.663
Change : -2.279 or -4.2%

Silver Gold Ratio Today : 0.01936
Change : 0.000818 or 4.4%

Platinum Price Close Today : 1570.00
Change : 17.60 or 1.1%

Palladium Price Close Today : 603.05
Change : 13.65 or 2.3%

S&P 500 : 1,188.04
Change : -4.94 or -0.4%

Dow In GOLD$ : $139.58
Change : $ (2.63) or -1.9%

Dow in GOLD oz : 6.752
Change : -0.127 or -1.9%

Dow in SILVER oz : 348.84
Change : -22.30 or -6.0%

Dow Industrial : 11,493.72
Change : -53.59 or -0.5%

US Dollar Index : 78.26
Change : -0.036 or 0.0%

The GOLD PRICE and the SILVER PRICE took the FOMC announcement the other way, or, more likely, merely bounced from yesterday's steep falls.

GOLD PRICE climbed 23.90 to close at $1,702.20, which unhappily falls short of the $1,705 support/resistance. The breakdown at $1,712 has now become the new resistance, so unless and until gold can conquer that price, it will continue to fall. Underneath, first support stands at $1,670. High today reached only $1,705.13.

The SILVER PRICE was stopped by 3300c. It's still possible that we are seeing a sort of double bottom for silver with lows at 3100c last Thursday and at 3063 yesterday. Today silver added a meaty 183.5c to close at 3294.8 on Comex. Yet without piercing 3300c, silver is fated to drop more.

GOLD and SILVER are in a routine correction in a bull market. Keep on averaging down as they feel around for a bottom.

I reckon it's because I have no subtlety and am nothing but a natural born fool from Tennessee, but if there's one thing that raises my dander and makes me want to tap dance on somebody's head, it's bureaucratic circumlocution -- talking all around what you need to say to avoid really saying it but trying to say it at the same time.

For example, if you see somebody's head is on fire and he doesn't know it yet, how about shouting, "Your head's on fire!" This economical use of English conveys the needful information with a minimum waste of letters and words.

What would you think of a goof who instead said, "Excuse me, but I believe that the kindling temperature of your hair fibers has nearly been reached, raising the distinct but not yet certain probability that, should conditions not change and rain not fall from the sky, the temperature rise might result in the combustion of your entire cranial surface."

The man's head is SMOKING, goof ball! Talk plain.

Not those goofs at the Federal Reserve, who specialize in circumlocution, obfuscation, prolixity, pleonasm, wordiness, evasion, and beating around the bush.

Today the Fed released the minutes of the 1-2 November Federal Open Market Committee. Shucked down to the kernel, its was "maybe we might print up even more money, but then again, maybe not." Then -- Oh, fail me not, Blessed Patience -- they discussed options for improving their communications policies!

Y'all, the ship of state has been hijacked by clowns. Bozo and Clarabelle could do better than this, and they'd be lots more entertaining.

Markets didn't know what to make of this. Dow had dropped 53.59 (0.46%) by day's end to 11,493.72, working its way down to the targeted 11,250. S&P500 dropped 4.94 (0.41%) to 1,188.04.

Y'all think about this, too. Markets are as sensitive to uncertainty as Johnson Grass is to Round-up. You spray 'em with uncertainty and they wilt. Yet the Lords of the Fed vacillate like a dying gyroscope. Mercy, we've fallen into a lunatic asylum.

US DOLLAR INDEX went nowhere, down 3.6 basis points to 78.264. Euro closed 1.3511, up a sliver of 0.16%. Yen dropped to 129.93c/ Y100 (Y76.96/$1). Flatlining, but part of that might be investors laying low, anticipating the US Thanksgiving holiday.

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.