Friday, February 10, 2012

Gold Price Dropped $15.70 to Close at $1,723.30 from here $1,725 Becomes Resistance not Support

Gold Price Close Today : 1,723.30
Gold Price Close 3-Feb : 1,737.90
Change : -14.60 or -0.8%

Silver Price Close Today : 3357.6
Silver Price Close 3-Feb : 3372.5
Change : -14.90 cents or -0.4%

Gold Silver Ratio Today : 51.325
Gold Silver Ratio 3-Feb : 51.532
Change : -0.21 or -0.4%

Silver Gold Ratio : 0.01948
Silver Gold Ratio 3-Feb : 0.01941
Change : 0.00008 or 0.4%

Dow in Gold Dollars : $ 153.56
Dow in Gold Dollars 3-Feb : $ 152.99
Change : $ 0.56 or 0.4%

Dow in Gold Ounces : 7.428
Dow in Gold Ounces 3-Feb : 7.401
Change : 0.03 or 0.4%

Dow in Silver Ounces : 381.26
Dow in Silver Ounces 3-Feb : 381.39
Change : -0.12 or 0.0%

Dow Industrial : 12,801.23
Dow Industrial 3-Feb : 12,862.23
Change : -61.00 or -0.5%

S&P 500 : 1,342.64
S&P 500 3-Feb : 1,344.90
Change : -2.26 or -0.2%

US Dollar Index : 79.034
US Dollar Index 3-Feb : 78.959
Change : 0.075 or 0.1%

Platinum Price Close Today : 1,656.40
Platinum Price Close 3-Feb : 1,621.50
Change : 34.90 or 2.2%

Palladium Price Close Today : 702.20
Palladium Price Close 3-Feb : 705.90
Change : -3.70 or -0.5%

Today wasn't a banner day for silver or the GOLD PRICE, either. GOLD dropped $15.70 to $1,723.30 and silver lost 30.8c, ending at 3357.6c.

Both SILVER and the GOLD PRICE continue to dig in their heels and give little ground. Gold dropped as low as $1,705.2 today, but plainly many idlers sat at $1,705 waiting to buy gold, and did, so it shot right back up and ended the day clinging to $1,725 support -- a little over the edge, but clinging still. From here $1,725 will become resistance, not support.

SILVER's low today came at 3318, and it has given back almost all the week's gains and again faces 3300c.

Expect more weakness next week from both metals. When/if silver breaks 3300c, as it likely will, it will drop faster than gold, taking the gold/silver ratio higher. I would buy silver (or gold) whenever that ratio reaches 57.50. Gold is not likely to drop lower than $1,680 - $1,650, nor silver below 3000c.

The market is handing you a last chance buying opportunity. Don't let it pass you by.

'Twas not a good week for stocks or gold or anything else much. Almost as exciting as a market in August, but even a market going nowhere tells us something.

Stocks soldiered away this week trying to burst through that May 2011 high but in the end couldn't beat 12,900 -- it beat them. And the closing (or near closing) of the Greek Debt Deal did not, as stock salesmen and assorted well-paid touts have been promising, usher in Fat City For Stocks. Rather, it brought only weight loss, disappointment, and the search for another chimerical rationale.

Dow today fell 89.23 (0.69%) and barely held on above 12,800 at 12,801.23. Odd, odd, passing odd: the S&P500 lost EXACTLY the same percentage, 0.69%, as the Dow, settling at 1,342.64 (lower by 9.31).

Let's nail the lid down on this coffin tight. Dow today fell lower than the five-day low (12,780), to 12,743, and traded below 12,800 all day long, until some Nice Government Angel came in during the last minutes and drove the Dow over the psychologically critical round number, 12,800. A market that behaves this way will move lower and that right soon.

But y'all don't believe me. I'm just a natural born fool from Tennessee, not one of them pointy-toe shoe wearing smart fellers from Wall Street.

US dollar index traced out a rounding bottom on its chart this week, with a low around 79.40. Today it spent most of its time above the morale- building 79.00 level, and gained a note-worthy 46.8 basis points (0.6%) to close 79.034.

This week may well have marked an end to the dollar's decline. If so, early next week it will climb above its 20 day moving average (now 79.61).

Don't know what caused the delay, but the euro gapped down today instead of yesterday. Fell 0.65% to 1.3198. 'Tis perched on its critical 62 day moving average (1.3149). Euro will enjoy a painful week next week.

Yen bounced 0.1% today to close at 128.87c/Y100 (Y77.60/US$1). Sitting just above support at 128.50c, yen could plunge deeply.

Someone sent me a headline today that claimed gold had fallen off today because the euro fell. Media market commentaries are daily filled with this same logical fallacy, post hoc, ergo propter hoc. This happened after that, so that caused this. This is as well grounded as inviting your brother-in-law to wreck your car again because the day he wrecked it last time your lottery ticket won. Without demonstrating some causative chain, these headlines demonstrate the near perfect vacuum in the heads of those writing.

On 10 February 1535 twelve nude Anabaptists ran through the streets of Amsterdam. Some sort of religious statement? SPECIAL OFFER DUCATS!

These nearly pure gold ducats have been minted in about the same weight (0.1106) and fineness (23-2/3 karat or 98.6% pure) since Roger II of Sicily began minting them in A.D. 1140. Venice minted them as ducato, then zecchino, and Florence minted them as florins, all to the same standard, 3.5 grams of 23-2/3 karat gold. Yes, this is the same size coin you read about in Shakespeare's plays.

Today the Austrian mint strikes four-ducat and one-ducat coins, and the Dutch strike one-ducats.

The Austrian four-ducat contains 0.4438 troy ounce fine gold, the Austrian one-ducats 0.1107 oz. and the Dutch 0.1106 oz. I have priced all these as if they all contained 0.1106 troy ounce per ducat, at a Three percent (3%) premium over spot gold.

Here's the deal: you can buy any combination equalling Twenty (20) one ducats for $196.75 per ducat (that's $787.80 for a four ducat), $3,939.00 plus $25 shipping per lot for a total of $3,964.00 per lot.

Please note that I will try but NOT guarantee you get any certain mix. If you order one four-ducat and sixteen one-ducats, you might get three four-ducats and eight one-ducats, but each lot will equal 20 one-ducats in gold content.

Sorry, no re-orders at these prices. Offer ends when my supply runs out.

Special Conditions:

First come, first served, and no re-orders at these prices. I will enter orders based on the time I receive your e-mail.

We will not take orders for less than the minimums shown above.

All sales on a strict "no-nag" basis. We will ship as soon as your check clears, but we allow Two weeks (14 days) for your check to clear. Calls looking for your order two days after we receive your check will be politely and patiently rebuffed. If you want faster shipping, please send a wire.

Spot gold basis for all prices above is $1,723.30. ORDERING INSTRUCTIONS:

1. You may order by e-mail only to . No phone orders, please.

Your email must include your complete name, address, and phone number. We cannot ship to you without your address. Sorry, we cannot ship outside the United States or to Tennessee.

Repeat, your email must include your complete name, address, and phone number. Our clairvoyant quit without warning last week and I stumbled and dropped my crystal ball, smashing it to pieces, so we can no longer read your mind.

2. Orders are on a first-come, first-served basis until supply is exhausted.

3. "First come, first-served" means that we will enter the orders in the order that we receive them by e-mail.

4. If your order is filled, we will e-mail you a confirmation. If you do not receive a confirmation, your order was not filled.

5. You will need to send payment by personal check or bank wire (either one is fine) within 48 hours. It just needs to be in the mail, not in our hands, in 48 hours.

6. We allow fourteen (14) days for personal checks to clear before we ship. If your hurry is greater than that, you can send a bank wire. Once we ship, the post office takes four to fourteen days to get the registered mail package to you. All in all, you'll see your order in about one month if you send a check.

Y'all enjoy your weekend!

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.