Wednesday, February 01, 2012

The Silver and Gold Price Enjoyed a Profitable Day With Gold Busting Through it's Resistance Closing at $1,747.10

Gold Price Close Today : 1747.10
Change : 9.30 or 0.54%

Silver Price Close Today : 3377.80
Change : 54.50 cents or 1.64%

Gold Silver Ratio Today : 51.723
Change : -0.568 or -1.09%

Silver Gold Ratio Today : 0.01933
Change : 0.000210 or 1.10%

Platinum Price Close Today : 1617.20
Change : 35.40 or 2.24%

Palladium Price Close Today : 697.75
Change : 12.40 or 1.81%

S&P 500 : 1,324.09
Change : 11.67 or 0.89%

Dow In GOLD$ : $150.46
Change : $ 0.20 or 0.14%

Dow in GOLD oz : 7.279
Change : 0.010 or 0.14%

Dow in SILVER oz : 376.47
Change : -3.66 or -0.96%

Dow Industrial : 12,716.46
Change : 83.55 or 0.66%

US Dollar Index : 78.93
Change : -0.356 or -0.45%

The SILVER and GOLD PRICE both enjoyed a profitable day. Gold busted clean through the $1,740 barrier and closed at a new high for the move, $1,747.10, up $9.30. Gold also posted a new intraday high, $1,750.77, but couldn't clear that $1,750 wall.

The GOLD PRICE Relative Strength Indicator has now reached the "Shur-nuff Overbought" level, but little else hints this rally will end any time soon. Above stands $1,800, which without question will pull out a big knobkerrie and pound gold about the head and shoulders. But that's $50 higher.

SILVER gained 54.5c today and closed Comex at a new high, barely, 3377.8c, but it didn't manage to clear the next resistance, 3400c. That hurdle just stands there, rock solid for the moment.

Thus although today silver encouraged us, it didn't reach in its pocket and put any real money on the table. We are left looking at the same range, 3300c to 3400c, and until silver breaks out of that prison, nothing has happened.

Y'all are going to look back one of these days and tell your children, "You know, once upon a time I had a chance to buy silver at thirty-four dollars!" They'll look at you in wonderment, and then ask, "Grandpappy, what's a dollar?"

Good thing about writing these commentaries is that every day that dawns brings a new chance to be wrong.

I was not, however, wrong to suspect silver and gold were about to jump, based on that one-slightly- down-other-slightly-up rule. But more below.

Okay, y'all, a Greek Debt Deal Is Near. Don't forget that. What kind of person would I be if I didn't remind y'all?

The US dollar, Laughingstock Of Fiat Currencies, only slightly less ridiculous than the euro and yen, shed 35.6 basis points (0.46%) today to land at 78.932. Yesterday's Big W resolved into a triple top, and obligingly fell lower than Friday's lows, to 78.623, relieving our minds of the worry that it might suddenly rally. Still, give the devil his due. Until the dollar clearly violates that 78.60 level, it's liable to do anything. Well, we all know that over time it can only do one thing -- slowly evaporate -- but I mean in the short run.

The scruffy and disgusting euro is flagging at the 62 day moving average, today 1.3209. Euro closed up 0.58% at 1.3158. Looks like it won't punch through, but will fall again for some sort of double bottom.

Did I mention that a Greek Debt Deal Is Near? Don't forget that. That will really help the euro by, uh, by, uh, well, I'm sure it will help Greece, at least. We won't talk about all the other bankrupt countries because one of them begins with an F.

On the other side of the globe pretty much nobody knows what they're doing, because they bid up the doomed yen 0.07% to 131.32c/Y100 (Y76.20/US$1). It's still rallying -- why is anybody's guess, given the fundamentals. Never mind, don't expect anything to make sense in a fiat money world.

Okay, stocks hung me on my own words, and sure's this world did manage to peck through 12,700. Dow rose 83.55 (0.66%) today and closed at 12,716.46. S&P500 rose through my strict 1,320 to 1,324.08, gaining 11.67 (0.89%).

As that notorious wit and indefatigable wag, Queen Victoria, used to quip, "We are not amused." Nor are we enthused. Stocks may simply be setting up for a little double top below 12,850, whence they will sink like your car keys when they were in your shirt pocket and you leaned over to get a better view of Hoover Dam. BICBW.

Anyway, who would want to own stocks and undergo all that fatigue of trying to pick the right one and do all that worrying when you can just buy gold or silver, stick it in the safe, and wait until Ben Bernancubus and the US Gov do what they do best: destroy the dollar.

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.