Wednesday, January 11, 2012

Gold Price Pierced the $1,630 Resistance and Has $1,680 Firmly in its Sights

Gold Price Close Today : 1642.00
Change : 8.20 or 0.5%

Silver Price Close Today : 2993.50
Change : 7.50 cents or 0.3%

Gold Silver Ratio Today : 54.852
Change : 0.137 or 0.3%

Silver Gold Ratio Today : 0.01823
Change : -0.000046 or -0.2%

Platinum Price Close Today : 1491.90
Change : 73.90 or 5.2%

Palladium Price Close Today : 644.30
Change : -22.95 or -3.4%

S&P 500 : 1,292.48
Change : 0.40 or 0.0%

Dow In GOLD$ : $ 156.73
Change : $ (0.77) or -0.5%

Dow in GOLD oz : 7.582
Change : -0.037 or -0.5%

Dow in SILVER oz : 415.88
Change : -1.03 or -0.2%

Dow Industrial : 12,449.45
Change : 0.40 or 0.0%

US Dollar Index : 81.31
Change : 0.503 or 0.6%

The GOLD PRICE pierced that ($1,630) resistance level and ratcheted to the next resistance level, $1,640. Closed today $8.20 higher at $1,639.20, but high came at $1,646.97. Gapped up on the open and never traded lower than $1,633.49, higher than yesterday's close. Strong, solid gain. GOLD has $1,675-$1,680 firmly in its sights and is marching that way with resolute dedication.

The SILVER PRICE met opposition today that muffled its enthusiasm. It gained only 7.5c to 2985.8c and with at a 3027c high failed to penetrate that resistance. Should do so tomorrow, as today it built an even-sided triangle, which tells us SOMEthing will happen tomorrow. Must-hold level remains 2960c.

Look for silver at 3100c soon, maybe tomorrow. Get out of its way!

Buying U.S. 90% SILVER coin rather than Silver Eagles over the last few years has saved investors from $3.25 to $2.25 PER OUNCE. You can buy more than 10% MORE silver by dodging the Eagles and purchasing 90% instead.

And don't let anybody fool you about recapturing the premium when you sell at market peak. I've been there, and you won't. At the peak nobody asks,

nobody asks, "What KIND of silver do you have?" They only ask, "How MUCH silver do you have?" Always buying the least expensive (but still liquid) form of silver or gold greatly increases your investment's leverage, because it increases the ounces you own.

TODAY silver and gold kept up their advance, the US dollar resumed its role as Big Bully Of Filthy Fiat, and stocks seem to be hovering at their arc's top preparatory to an earthward plunge.

Some stock indices rose, some fell today, reflecting fear and indecision. Dow fell 13.02 to 12,449.45, S&P500 gained a flea-bite 0.4 to $1,292.48. Charts have look and feel of a dying advance.

US dollar index bellied up to the table and chug-a-lugged another 50.3 basis points (0.65%) to end at 81.308. This takes the buck back to where this bar-fight started over the weekend with a new high at 81.50. Tomorrow the dollar will finish this fight by breaking beer bottles over its opponents heads, pitching them out of the bar, and closing the doors higher.

Dollar rally continues.

Euro and yen both closed lower. Yucky yen closed 130.12c/Y100 (-.04%) and scrofulous euro closed at 1.2709, down 0.52%. For the moment, the dollar has 'em licked, but it's every bit as sorry as they are. Well, that's not quite right, but it's still plenty sorry.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2012, 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.