Tuesday, February 14, 2012

Gold Price Remains in a Bull Market the Longer it Drags the More Likely it will Resolve Upwards

Gold Price Close Today : 1715.80
Change : (7.20) or -0.42%

Silver Price Close Today : 3332.60
Change : 37.0 cents or -1.10%

Gold Silver Ratio Today : 51.485
Change : 0.352 or 0.69%

Silver Gold Ratio Today : 0.01942
Change : -0.000134 or -0.68%

Platinum Price Close Today : 1629.90
Change : -20.10 or -1.22%

Palladium Price Close Today : 687.30
Change : -8.95 or -1.29%

S&P 500 : 1,350.50
Change : -1.27 or -0.09%

Dow In GOLD$ : $155.16
Change : $ 0.72 or 0.46%

Dow in GOLD oz : 7.506
Change : 0.035 or 0.46%

Dow in SILVER oz : 386.43
Change : 4.37 or 1.14%

Dow Industrial : 12,878.28
Change : 4.24 or 0.03%

US Dollar Index : 79.41
Change : 0.461 or 0.58%

The GOLD PRICE gave back $7.20 today and closed Comex at $1,715.80. The SILVER PRICE dropped a bit more, 37c to 3332.6. Ratio rose to 51.485.

In all this neither SILVER PRICE nor GOLD PRICE have violated the bottom boundaries which, if they cross, will drag them lower: 3300c for silver and $1,705 for gold.

It's a bull market. Remember that the longer anything drags on in a bull market, the more likely it is to resolve in the upward direction, because that is the market's tide.

The riddle remains, Why have silver and the GOLD PRICE not fallen further, followed through their repulse at $1,750? Is that strength speaking? Can they not be driven back further?

First, look at currencies. US dollar index today gained a hefty 46.1 basis points (0.5%), stealing it all from the yen and euro. Euro dropped 0.47% to 1.3126 and Yen plunged a massive 1.09% to 127.51c/Y100 (Y78.43/US$1). Dollar stands at the 20 day moving average's threshold (70.40) and tomorrow will open the door.

Stocks dithered. Dow gained 4.24 to 12,878.28, S&P500 lost 1.27 to 1,350.50, clearly confusion and weakness rule, and most of the day stocks were underwater. Only in the last few minutes Some Friend appeared, eager to buy. Wonder who that was?

I will be travelling tomorrow, Thursday, and Friday, February 15, 16, and 17. Monday 20 February is a holiday in the US, "The Monday Nearest Washington's Birthday." On Tuesday 21 February I must travel again, but will try to return in time to write a commentary.

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.