Wednesday, December 07, 2011

Gold Price Rose $13 Today to $1,740.90 While Silver Fell 11.7c

Gold Price Close Today : 1740.90
Change : 13.00 or 0.8%

Silver Price Close Today : 3255.5
Change : 11.7 cents or -0.4%

Gold Silver Ratio Today : 53.476
Change : 0.589 or 1.1%

Silver Gold Ratio Today : 0.01870
Change : -0.000208 or -1.1%

Platinum Price Close Today : 1523.00
Change : 3.30 or 0.2%

Palladium Price Close Today : 681.05
Change : 12.80 or 1.9%

S&P 500 : 1,261.01
Change : 2.54 or 0.2%

Dow In GOLD$ : $144.82
Change : $ (0.52) or -0.4%

Dow in GOLD oz : 7.006
Change : -0.025 or -0.4%

Dow in SILVER oz : 374.64
Change : 2.76 or 0.7%

Dow Industrial : 12,196.37
Change : 46.24 or 0.4%

US Dollar Index : 78.41
Change : 0.049 or 0.1%

Confusion abounds: yesterday the GOLD PRICE fell and SILVER was was up, today just the opposite. The GOLD PRICE rose $13 today to $1,740.90. Silver fell 11.7c to 3255.5c, right at the bottom of my range.

During the day the SILVER PRICE dipped as low at 3218 but came right. The bottomy looking formation left on the chart Friday - Tuesday remains intact. More, silver remains above that rising trend line (bottom of the even-sided triangle). Obviously silver is much more vulnerable to a downdraft than gold, but until it breaks that support the trend has not broken down. My job is to report, not to anticipate -- well, not too much, anyway.

Mayhap I have not made myself entirely, pellucidly clear. I will therefore, try again.

1. Get out of IRAs and 401(k)s, and put the proceeds into physical silver or gold you hold in your own hands. Do NOT put the proceeds in anything else.

2. I do not recommend, or invest in, gold and silver stocks. Why? Because although the rationale for buying these mining stocks is that they offer leverage to the gold price, history shows that the precious metals mining stock indices, at least, do not outperform plain bullion. If they offer me no more leverage, then why would I take the extra risk above the gold price risk, namely, the enterprise risk? Answer: I wouldn't, so I don't buy them.

Yes, it is possible that SOME precious metals mining stocks will outperform the indices. Can you pick those? If not, you'd better find some great broker to pick them for you.

'Twas a marginal day, mumbling out of both sides of its mouth. Gold, silver, and dollar index all sailing awfully close to the wind.

All the drunks are sobering up again as this latest dose of Crisis-Cure Bust-skull wears off. Whoops! Turns out it won't keep you drunk forever after all. Turns out the crisis isn't solved after all, no matter how much Sarcophagus and Ferkel snuggle up to each other. Propaganda machine is plumping full-bore for more centralization.

Stocks knew not which way to turn today. With a last 45 minutes surge, Dow looks to have been the beneficiary of the beneficent Nice Government Men. After all, the level of the Potemkin stock market must be kept up.

Dow was down 100 early in the day, flirted with barely up/unchanged part of the day, then rose into the close. It ended 46.24 higher (0.38%) at 12,196.37, right at the 12,200 barrier. S&P500 rose 2.54 points or 0.20% to 1,261.01.

Y'all listen now: the Dow is smashing up against overhead resistance in the form of the neckline of a head and shoulders top formed during most of 2011. Could breach that slightly, but drag will be terrible, and won't make it much higher than 12,400 if that.

Dollar flirted with the dowside, too, down 9.4 basis points to 78.405. Yet the cord is not yet broken.

I heard that the communists in the United States senate passed another bill to strip us mushrooms of 6th Amendment rights, 93 to 7. Makes it easier for them to define you as a "terrorist" administratively and so strip you of rights in advance before any trial or other "red tape." Y'all are not paying attention. They will keep on doing this to you until you say NO in some way that will get clear through their muddled brains from one ear to the other.

Empires just have no room for statesmen with outdated republican (small R) virtues. They grow, rather, traitors and assassins aplenty.

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.