Gold Price Close Today : 1652.30
Change : (5.70) or -0.34%
Silver Price Close Today : 3197.80
Change : 16.1 cents or 0.51%
Gold Silver Ratio Today : 51.670
Change : -0.441 or -0.85%
Silver Gold Ratio Today : 0.01935
Change : 0.000164 or 0.85%
Platinum Price Close Today : 1627.20
Change : -8.30 or -0.51%
Palladium Price Close Today : 645.35
Change : -3.80 or -0.59%
S&P 500 : 1,403.28
Change : -2.26 or -0.16%
Dow In GOLD$ : $164.47
Change : $ 0.83 or 0.51%
Dow in GOLD oz : 7.956
Change : 0.040 or 0.51%
Dow in SILVER oz : 411.09
Change : -1.46 or -0.35%
Dow Industrial : 13,145.82
Change : 19.61 or 0.15%
US Dollar Index : 79.14
Change : 0.010 or 0.01%
The GOLD PRICE down SILVER PRICE up, but that's not so bad, for reasons I will candidly divulge shortly.
Bear in mind that I said yesterday I would cling to my conclusion that silver and gold would NOT make lower bottoms unless the GOLD PRICE closed below $1,630 and silver below 3140c.
Today gold's low appeared at $1,645.62 and silver's at 3163.2c. In both cases these came as V-bottoms which might mark a turnaround.
Today's split close -- the GOLD PRICE down $5.70 to $1,652.20 and silver up 16.1c to 3197.8c -- has in the past months often led to a higher day following.
There's more. In the aftermarket both rose smartly, That looks like nervous shorts covering positions at the day's end.
More yet: silver's rise pushed up above yesterday's resistance. Gold's edged into it.
Something just ain't right. Markets don't get this quiet, with buying and selling so nearly perfectly balanced. When they look quiet, often we are overlooking the real forces about to push one way or the other.
What am I saying? OF COURSE it ain't right, we've got a central bank!
And by the way, every time y'all hear that the European crisis is over, you remember those folks living on the slopes of Vesuvius in AD 79 who kept on saying, "Aww, don't pay that smoke no mind! It ain't nothing."
Y'all know what it means to "paint the tape"? That's when stock promoters create a flurry of activity in a stock to make it look good. But, of course, we know that our upright Nice Government Men wouldn't stoop to the same tactics that low-life, white-trash stock promoters use, would they?
Hold that thought! Today stock indices ALL closed down, EXCEPT the most widely watched one, the Dow. It closed UP 19.61 (0.15%) at 13,145.82.
Now look at the background. Stocks started out underwater today, and stayed underwater all day, except the Dow, plumb at the end of the day, found sponsorship and goosed up to close barely higher for the day.
Why, sure! But let us assume that today's outcome really did occur naturally. What meaneth that? That investors fled the higher risk indices to the stodgier blue chips. This argueth not for a higher market, because that risk appetite must rise or stocks can't rise.
Dow is also is playing footsie with it's 20 day moving average below. Today at 13,078, and low was 10,033. And a cross beneath the 20 DMA is the first warning of lower prices. Doesn't always follow through lower, but 'tis still the warning.
STOCKS -- in partnership with the US Government since 1987, when the Plunge Protection Team was founded.
Look here! The US dollar index for the past three days has traded in a ten basis point range, totally comatose. That never lasts, and it looks very strange that the dollar broke down through established support but refused to follow through. Wow. A miracle, I reckon. Well, maybe not.
Euro dropped 0.11% to $1.3301 and still looks sorry as gully dirt to me. It stalled at 1.3368, and has drifted down since then. Ye on the other hand gapped up today above its 20 DMA (121.10) to 121.29, up 0.51%.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
10:00am-5:00pm CST, Monday-Friday
© 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.