Tuesday, February 07, 2012

Gold Price Has Been on a Short Term Correction for the Last Three Days but Wants to Climb Higher

Gold Price Close Today : 1746.40
Change : 23.60 or 1.37%

Silver Price Close Today : 3416.50
Change : 44.30 cents or 1.31%

Gold Silver Ratio Today : 51.117
Change : 0.028 or 0.06%

Silver Gold Ratio Today : 0.01956
Change : -0.000011 or -0.06%

Platinum Price Close Today : 1650.30
Change : 28.80 or 1.78%

Palladium Price Close Today : 707.45
Change : 2.45 or 0.35%

S&P 500 : 1,347.29
Change : 2.96 or 0.22%

Dow In GOLD$ : $152.56
Change : $ (1.55) or -1.01%

Dow in GOLD oz : 7.380
Change : -0.075 or -1.01%

Dow in SILVER oz : 377.25
Change : -3.66 or -0.96%

Dow Industrial : 12,888.76
Change : 43.63 or 0.34%

US Dollar Index : 78.52
Change : -0.553 or -0.70%

The GOLD PRICE rolled back all its losses since last Friday, and banged on $1,750 resistance as well with a $1,749.71 high. Rose $23.60 to $1,746.40 on Comex.

This is good and not so good. It leaves yesterday looking like a bottom at $1,710 (today's low), and a leap up off that bottom through two resistance levels.

Think of it this way. The GOLD PRICE bottomed on 29 December at 1523.90 (intraday), and commenced an uptrend. If you draw an uptrend line from 29 December across the bottoms, you'll see that today's low merely touched the uptrend line, nothing more. Trend remains intact. More, gold made a new low for the move today, then closed higher than the day before -- first half of a key reversal. If gold closes higher tomorrow, it was a key reversal and gold has resumed climbing.

All that also almost works for the SILVER PRICE, but not quite. Silver rose 44.3c today to shut the doors at Comex on 3416.5c. But silver did penetrate its uptrend line, by a little. Given that silver often does that, then refuses to follow through, we can chalk that up to silver's greater volatility.

The SILVER PRICE has reached the threshold of its crucial 300 day moving average (3453c). Clear that hurdle, and silver will run for the finish line. Momentum already points up, with silver above its 50 and 20 DMAs.

Turning all that the other way round, a failure at 3450c would hurt silver badly, and send it back toward 3100c to build a broader, firmer foundation. Once again, silver's line in the sand is 3300c.

Last three days have been merely a very short-term correction for metals. Seems they want to climb higher. Don't get caught standing in their way.

Y'all don't forget: A Greek Debt Deal is Near.

With astonishing candor Fed Head Ben Bernancubus told the senate budget committee today that the much-touted 8.3% unemployment rate from January UNDERstates weakness in the US labor market.

Something's up. Bernancubus is sounding almost rational -- it's a trick. Or he is sandbagging because he awaits even worse news still.

Silver and gold found nothing but support in Bernancubus' remarks, as everything he said implied he will depreciate the dollar much more through inflation.

At least, the US dollar index took it that way since it sank a chunky 55.3 basis points (0.71%) to 78.516. That's the bottom of the last 30 days' range. The fall through 78.50 will only confirm the down-ness of a trend already turned down, and 'twill accelerate it.

Yeah, buddy! That Greek debt deal is just roaring down the tracks. The euro market thinks so, I reckon, because the euro rose today to 1.3258, up 0.97% and above 1.3200 resistance. Still, if I owned euros (and I don't, and won't, unless I have to travel there) and the deal did go through, I would sell them on the NEWS tomorrow that a deal has been struck. Forget not the proverb, "Buy the rumour, sell the news."

Appears that part of what's been driving up the yen was money looking for a refuge for the euro, since the yen fell 0.31% today to 130.25c/Y100 (Y76.78/US$1). Yen pierced but did not close below its 20 DMA (130.16). The yen has a fine future at a lower level.

STOCKS struggle yet with that 12,875 resistance. Dow gained 43.63 (0.34%) to 12,888.76 and the S&P500 rose 2.96 (0.22%) to 1,347.29

Are stocks topping or consolidating? Well, they feed off inflation and the Bernancubus today promised more of that -- although stocks feeding off inflation is like the eucalyptus-obligate koala bear eating chocolate cake and expecting to thrive. End thereof will be painful and messy, and fraught with indigestion and enthusiastic puking.

If stocks penetrate that 12,875, say, by 2% (13,132.5) they will stretch their legs and run to the 2007 top. I don't expect that, but do expect their strength will wane and vanish by end of the first quarter, second at latest.

The gold ARGENTINO was minted from 1881-1887 in 90% gold (same as the US standard) at a fine gold content of 0.2334 troy ounce. These are simply bullion coins with some circulation, for $417.80 each. With spot gold

With spot gold at $1,746.40, that's a tee-tiny 2.5% premium over gold content. They don't carry a wide buy/sell spread, since wholesale buy for them today is 98.9% of melt.

I will sell minimum lots of Ten (10) coins for $4,178.00 + 25 shipping per lot (total $4,203.00). I have only One hundred (100) coins, so no re-orders at this price.

The gold URUGUAYAN 5 PESOS was minted in 1930 at 91.7% pure gold containing 0.2501 troy ounce of fine gold.

Minimum lot is Five (5) coins at $447.70 each (2.5% premium), or $2,238.50 plus $25 shipping per lot total $2,263.50/lot). I have only Twenty-five (25) coins, so no re-orders at this price.

I also have One (1) only lot of One hundred Two (102) U.S. 1921 MORGAN SILVER DOLLARS, some About Uncirculated (AU) but mostly Uncirculated (BU), $35.55 each or $3,626.10 plus $25 shipping ($3,651.10 total). Absolutely no re-orders at this price.

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 $1,746.40 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, you 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.

Please mention goldprice.org in the 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.