Wednesday, February 22, 2012

Gold Price up $12.90 with a new Intraday High of $1,781.54

Gold Price Close Today : 1770.00
Change : 12.90 or 0.73%

Silver Price Close Today : 3425.4
Change : -17.5 cents or -0.51%

Gold Silver Ratio Today : 51.673
Change : 0.637 or 1.25%

Silver Gold Ratio Today : 0.01935
Change : -0.000242 or -1.23%

Platinum Price Close Today : 1722.35
Change : 35.25 or 2.09%

Palladium Price Close Today : 722.45
Change : 11.85 or 1.67%

S&P 500 : 1,357.65
Change : -4.55 or -0.33%

Dow In GOLD$ : $151.11
Change : $ (1.41) or -0.93%

Dow in GOLD oz : 7.310
Change : -0.068 or -0.93%

Dow in SILVER oz : 377.73
Change : 1.14 or 0.30%

Dow Industrial : 12,938.67
Change : -27.02 or -0.21%

US Dollar Index : 79.21
Change : 0.170 or 0.22%

Precious metals give us pause to think. In spite of superb strength in the GOLD PRICE -- up $12.90 today to $1,770, new intraday high of $1,781.54 -- and great antics out of platinum and palladium, the SILVER PRICE still hath not breached that 300 day moving average. Silver, in fact, lost 17.5c to end at 3425.4c, after a 3448c high, stymied yet again at the 300 DMA, today at 3469c.

It's an antsy deal, trying to parse silver's pattern. Could be a rounding top, rolling over, or a broadening top. On the positive side, all the other metals are tugging silver up, calling silver to play catch-up, and once it penetrated that 300 DMA, twill play catch-up with a vengeance.

Logic says to buy after the breakout, even when it looks as sure as this one, but I never can resist, and often buy high in punishment for my hubris and impatience.

Always a good idea to lift your head up and take a wide look around, instead of keeping your nose pointed groundward. We did that yesterday, and it warned us that stocks were faltering, and that gold was poised to jump. Ahh, but looking around today reveals a disquieting disharmony in the metals, too.

Stocks sank beneath the surface from the dawn of day and never reached high enough to take a breath. Dow Jones Industrial Average sank 27.02, 0.21%, to 12,938.67; S&P500 kept it company by falling 4.55 (0.33%) to 1,357.66. More instructive still, the Dow in Gold Dollars fell today G$1.41 (0.068 oz).

Five day Dow chart shows a market that has rolled over, and unless it can breach -- convincingly -- 13,000 and stay there, 'twill play the Titanic.

But y'all don't listen to me. I don't know a thing compared to them geniuses in Washington and on Wall Street. I didn't even get shoes till last year.

If the Japanese yen has not exhausted its downmove today, I can't see why not. In the last three weeks it has cascaded from 131.52c/Y100 (Y76.03/US$1) to 124.57c (Y80.28/US$1). That's a 5.3% loss, a gigantic move in currencies. Don't know what's wrong, only that the market believes the yen has leprosy, and isn't touching it. Three gaps down in the last three trading days -- that's a flashing light that the end must be near.

US dollar index added 17 basis points (0.22%) to end at 79.214, still comfortably above 79. To advance farther, dollar needs to close above 79.50.

Euro rose today 0.1% to 1.3250, still not enough to beat the last (133.22) peak. If the euro can't do that, it is rolling over downward. And I wonder why the euro is not doing that, since the Greek problem has been "solved." What more good news awaiteth the euro? One wonders what more good news there even might be. Next big move will be down, I ween.

On Friday, 24 February, I will be speaking for the Fayette County (Tenn.) Tea Party at the Fayette County Courthouse, in the town square at Somerville, Tennessee. Party starts at 7:00 p.m., and the topic will be "Restoring Freedom by Rebuilding Local Economy." This may be your only chance to see a natural born fool from Tennessee live and outside captivity.

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.