Friday, February 24, 2012

Is the Gold Price Targeting $2,036 in this Present Move?

Gold Price Close Today : 1,775.10
Gold Price Close 17-Feb : 1,724.60
Change : 50.50 or 2.9%

Silver Price Close Today : 3533.8
Silver Price Close 17-Feb : 3321.6
Change : 212.20 or 6.4%

Gold Silver Ratio Today : 50.232
Gold Silver Ratio 17-Feb : 51.921
Change : -1.69 or -3.3%

Silver Gold Ratio : 0.01991
Silver Gold Ratio 17-Feb : 0.01926
Change : 0.00065 or 3.4%

Dow in Gold Dollars : $ 151.18
Dow in Gold Dollars 17-Feb : $ 154.86
Change : $ (3.69) or -2.4%

Dow in Gold Ounces : 7.313
Dow in Gold Ounces 17-Feb : 7.492
Change : -0.18 or -2.4%

Dow in Silver Ounces : 367.36
Dow in Silver Ounces 17-Feb : 388.97
Change : -21.61 or -5.6%

Dow Industrial : 12,981.62
Dow Industrial 17-Feb : 12,919.87
Change : 61.75 or 0.5%

S&P 500 : 1,366.07
S&P 500 17-Feb : 1,361.23
Change : 4.84 or 0.4%

US Dollar Index : 78.308
US Dollar Index 17-Feb : 79.327
Change : -1.019 or -1.3%

Platinum Price Close Today : 1,712.80
Platinum Price Close 17-Feb : 1,638.00
Change : 74.80 or 4.6%

Palladium Price Close Today : 711.35
Palladium Price Close 17-Feb : 695.00
Change : 16.35 or 2.4%

The Silver and GOLD PRICE both backed away today, but after the week we've seen -- up 6.4% for SILVER and up 2.9% for GOLD -- who would that amaze?

The GOLD PRICE gave back $9.80 to close at $1,775.10 while silver gave up 21.8c to end at 3533.8c.

My friend MH and someone else wrote me today asking why I hadn't said anything about the upside down head and shoulders in silver and gold. Well, I am now going to say something about them.

If upside-down head and shoulders indeed, then the GOLD PRICE is targeting $2,036 and silver 4335c.

Right, those are targets for this move presently underway. A lot of upside is left to this move.

When y'all are buying physical silver or gold, remember one thing: OVER TIME, PREMIUM ALWAYS DISAPPEARS.

I realize that many dealers will recommend you buy only the silver and gold American Eagles, but remember they are selling out of their inventory, not out of your best interest.

I've been at a market peak, and at the top nobody cares what KIND of ounces you have, only HOW MANY. Always stick with the lowest cost items, which right now means US 90% silver coin in silver and in gold, Austrian 100 coronas, Mexican 50 pesos, and Krugerrands.

And for heaven's sake, don't let anybody tell you, "It's different this time," because it never is. That's why the premium on US $20 gold pieces has collapsed in the last 12 years.

Today I must leave early, so am bringing you not the closes, but the prices at 1:00 p.m. CST. Metals prices are closes.

Market on Friday had to digest the week's gains, so didn't move very much. This can easily be charged off to traders flattening their positions before the weekend, and shows no trend change.

STOCKS are bumping up against an iron ceiling and cannot penetrate Dow 13,000. Don't know if top will come here -- although that's quite likely -- or in a week or two slightly higher. Looks to me that stocks have run out of steam and are rolling over.

But since stocks are in a bear market, I don't want to own them anyway.

Today's close marks a new low for the US dollar index, and argues that the downtrend will continue -- argues right forcefully. Euro rose 0.71% today to 1.3464. Move probably limited to 1.3630, a 61.8% correction of the preceding drop, but right here at the 50% level it might stop as well. No hope of good news from Europe. Yen gained 0.66% today to 123.69c (y80.85/US$1), but that's no surprise. Decline completed.

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.