Tuesday, February 28, 2012

The Gold Price Gained $13.47 to Close Comex at $1,787 a New High Close for the Move

Gold Price Close Today : 1787.00
Change : 13.47 or 0.76%

Silver Price Close Today : 3714.00
Change : 161.6 cents or 4.55%

Gold Silver Ratio Today : 48.115
Change : -1.810 or -3.62%

Silver Gold Ratio Today : 0.02078
Change : 0.000753 or 3.76%

Platinum Price Close Today : 1716.80
Change : 12.20 or 0.72%

Palladium Price Close Today : 721.75
Change : 19.00 or 2.70%

S&P 500 : 1,372.18
Change : 4.59 or 0.34%

Dow In GOLD$ : $150.44
Change : $ (0.85) or -0.56%

Dow in GOLD oz : 7.278
Change : -0.041 or -0.56%

Dow in SILVER oz : 350.16
Change : -15.26 or -4.18%

Dow Industrial : 13,005.12
Change : 23.61 or 0.18%

US Dollar Index : 78.25
Change : -0.321 or -0.41%

Once again today the GOLD PRICE and the SILVER PRICE followed a day with higher silver/lower gold by jumping skyward.

The GOLD PRICE gained $13.47 to close Comex at $1,787, a new high close for the move. Gold is pushing through tough thickets here. High at $1,789.34 wasn't much higher than last Thursday's $1,787.18. Clearly resistance is growing as gold moves toward 1805. Gold is tolerably overbought, but shows no sign of breaking yet.

SILVER leapt a huge 4.6% today, 161.6c, to 3714c. Will silver rage forever?

Silver hit the November high about 3960c and never looked back until it closed Comex 161.6c higher at 3714c. Mercy! It's above its 50, 20, 300, and 200 day moving averages, how much more UP could momentum point?

Has silver hit tall cotton permanently? This move might carry as high at 3950c - 4000c, but hard to imagine it rising higher than that.

Arguing against further rise soon is that rising wedge-ish shape on silver's chart, built since mid- and end-December. Today's price hit the upper boundary of that wedge, which stretches us to assume that silver will also punch thru that boundary and keep on rising to 3950c or better. Might, but will have to trade higher that 3745 (today's high) all day tomorrow and hath not the odds on its side.

GOLD SILVER RATIO today dropped to 48.115. Folks keep on writing to ask me if I am still waiting for 57.5 to swap silver for gold. Answer is, I am. Maybe we missed it back in December when it ALMOST traded at 57.5, but I never made money chasing any market. Besides, y'all are in gold now, and it's rising a-plenty. Be patient. When a market is boiling over like silver right now, it tends to soften your brain and cloud your judgment. BICBW, and I often am.

I will be out of town tomorrow and so will not publish a commentary. Back Thursday, D.V.

On Wall Street today jubilators jubilated jubilantly because the Dow closed above 13,000 for the first time since May 2008 when the crisis "began" (I pass over this universally swallowed canard in the interest of time, but y'all understand that the crisis "began" with the real estate bubble bursting, or was it with Greenspan pumping up the money supply to make up for the stock market bubble bursting, or and so on and so on back to the Fed's founding in 1913).

On the other hand, Un-jubilators will notice the large rising wedge in the Dow, sure harbinger of a breakdown to come. Dow gained 23.61 today (0.18%) to close at 13,005.12. S&P500 added 4.59 (0.34%) to 1,372.18.



Back in the days of the gold standard, one US gold dollar virtually equaled two Mexican gold pesos (0.04834 vs. 0.04823 oz), and both were struck in 90% fineness (21.6 karat).

The Mexican Mint, Casa de Moneda de Mexico, has been striking gold and silver coins since 1535, and although Mexico went off the gold standard ages ago, they still mint all the gold coins of the old peso series: 50 pesos, 20 pesos, 10 pesos 5 pesos, 2-1/2 pesos, and 2 pesos.

I like these small Mexican coins because they are small enough to be useful in barter, they're widely traded and recognized, and they carry a low premium over gold content, unlike most small coins. Usually dealers want to charge a high premium for the smaller Mexican coins, too, but I just buy cheap when I can and throw them back until I have a pile.

Now I have a pile, of 2-1/2 pesos (0.0603 oz, about 1/16 oz), 5 pesos (0.1206 oz, about 1/8 oz), and 10 pesos (0.2411, about 1/4 oz).

With spot gold at $1,787, I can sell these at a premium of only 3% over gold content.

Now pay close attention and don't let this confuse you. I am selling these in lots of SIXTY (60) gold pesos (contains 1.4469 oz pure gold). That's 24 each 2-1/2 pesos, or Twelve each five pesos, or Six each ten pesos, or ANY COMBINATION THEREOF amounting to sixty (60) gold pesos (1.4468 oz fine gold),

plus $25 per order shipping.

So 24 ea. Gold 2-1/2 pesos @ $111 ea. = $2,664 + 25 = $2,689.00

Also 12 ea gold 5 pesos at $222 ea. = $2,664 + 25 = $2,689.00

Also 6 ea. Gold 10 pesos at $444 ea. = $2,664 + 25 = $2,689.00

If you want to order a specific mixture, I will fill those orders as they come in, but reserve the right to send any mixture of coins totaling 1.4468 oz fine gold (60 gold pesos) per lot, and will try to put some of the smallest coins into each order.

Yes, you may order as many lots as you please, but I'm sorry, no re-orders or back-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 at .

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 $1,787.00. 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.

7. Mention goldprice.org in your email.

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.