Tuesday, March 27, 2012

Gold Price Closed at $1,684.90 is the Correction Complete?

Gold Price Close Today : 1684.90
Change : (0.70) or -0.04%

Silver Price Close Today : 3260.10
Change : 12.5 cents or -0.38%

Gold Silver Ratio Today : 51.682
Change : 0.176 or 0.34%

Silver Gold Ratio Today : 0.01935
Change : -0.000066 or -0.34%

Platinum Price Close Today : 1653.80
Change : 6.10 or 0.37%

Palladium Price Close Today : 658.35
Change : -9.65 or -1.44%

S&P 500 : 1,412.52
Change : -3.99 or -0.28%

Dow In GOLD$ : $161.92
Change : $ (0.46) or -0.28%

Dow in GOLD oz : 7.833
Change : -0.022 or -0.28%

Dow in SILVER oz : 404.83
Change : 0.20 or 0.05%

Dow Industrial : 13,197.73
Change : -43.99 or -0.33%

US Dollar Index : 79.09
Change : 0.110 or 0.14%

GOLD PRICE rested today, lost a miniscule 70 cents to close Comex at $1,684.90. The SILVER PRICE lost 12.5c to end at 3260.1c.

For limb walkers, here's the day I turn bullish and skootch out just as far as I can onto that limb. Yes, 'tis conceivable that both the SILVER and GOLD PRICE will make slightly lower lows, but no longer likely they will drop to $1,575 and 2950c. Both saw a low, a rise to a new post-September-correction high, then what looks like a small correction and a low, followed by a surge. That looks like the bottom of the 2-wave in a rally. That's the safe buy. The alternative is to wait until the upside-down head and shoulders is confirmed by a breakout above $1,800 and 3700c. I'd rather risk a little more downside here than wait to buy that much higher.

Let me make this clear: this is a limb-walking proposition, not a rope to swing over hell on. It's a risk, and I have no crystal ball, no clairvoyant, and no guarantees I am right. After all, I'm just a natural born fool from Tennessee.

Here's a little warning about those direct mail and magazine ad offers for silver dollars. After I offered a few Brilliant Uncirculated pre-1905 Morgan silver dollars last Friday at $45 each, a reader sent me a magazine ad offering to sell common date 1881-S dollars for a modest $89.95 each, plus shipping and handling. Since they range from $43 to $45 at wholesale, that amounts to a neat, clean 100% mark-up. Y'all better be careful buying from these ads. Mercy, you'd better check me out, too.

Here's a quick answer to those who objected to my conclusion yesterday that the yankee government cannot FORCE/mandate you to buy health insurance by pointing out that your state mandates that you buy automobile insurance.

Are you a "driver" or a "traveler"? Do you "travel" under your Magna Carta rights, or did you SIGN an APPLICATION to get the state's privilege of becoming a state-approved "driver," i.e., a "person" who uses the public roads for profit? If you signed that driver's license application, you made a contract with the state promising to observe whatever rules of the road the state establishes for "drivers," including making you buy auto insurance as a condition of that contract.

When you signed an application/contract with the state, you WAIVED all your common law right to "travel" freely. Sorry, you volunteered into their system by SIGNING a contract. That's why they can mandate that you buy auto insurance.

But the yankee government still can't mandate that you buy health insurance, unless you are all slaves. Did y'all sign anything volunteering to become wards/slaves of the yankee government?

I'm just asking questions, cause I don't know nothing. I'm just a natural born fool from Tennessee.

TODAY markets took a day off to digest the last couple of days' feasting.

STOCKS lost about 0.3%. Dow gave back 43.9 to close at 13,197.73 and the S&P500 lost 3.99 to end at 1,412.52. This tells us nothing yet as to whether stocks will extend their rally or fail. But y'all know what I'm betting already.

US DOLLAR INDEX rose 11 basis points to end at 79.092, up 0.14% but not good enough for anything but government work. The damage was already done to the chart when the dollar fell through 79.30, and without climbing above 79.30 and holding on, the damage is not repaired. Dollar is headed for 78.40, and if it crosses that mark, Oh, well, ain't no telling.

Euro looked perkier yesterday and closed down a little today, down 0.3% to $1.3318. It's not an confidence-inspiring chart. Yen fell 0.45% to 120.26c (Y83.15). Traded down to fill a gap its enthusiasm left behind. Worst is past and the yen will rise more.

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.