Friday, March 02, 2012

The Gold Price Gave Back $12.30 to Close at $1,708.80 Offering You Reduced Prices so Buy While You Can

Gold Price Close Today : 1,708.80
Gold Price Close 24-Feb : 1,775.10
Change : -66.30 or -3.7%

Silver Price Close Today : 3448.1
Silver Price Close 24-Feb : 3533.8
Change : -85.70 or -2.4%

Gold Silver Ratio Today : 49.558
Gold Silver Ratio 24-Feb : 50.232
Change : -0.67 or -1.3%

Silver Gold Ratio : 0.02018
Silver Gold Ratio 24-Feb : 0.01991
Change : 0.00027 or 1.4%

Dow in Gold Dollars : $ 156.99
Dow in Gold Dollars 24-Feb : $ 151.19
Change : $ 5.80 or 3.8%

Dow in Gold Ounces : 7.595
Dow in Gold Ounces 24-Feb : 7.314
Change : 0.28 or 3.8%

Dow in Silver Ounces : 376.37
Dow in Silver Ounces 24-Feb : 367.39
Change : 8.98 or 2.4%

Dow Industrial : 12,977.57
Dow Industrial 24-Feb : 12,982.95
Change : -5.38 or 0.0%

S&P 500 : 1,369.63
S&P 500 24-Feb : 1,365.74
Change : 3.89 or 0.3%

US Dollar Index : 79.432
US Dollar Index 24-Feb : 78.308
Change : 1.124 or 1.4%

Platinum Price Close Today : 1,696.30
Platinum Price Close 24-Feb : 1,712.80
Change : -16.50 or -1.0%

Palladium Price Close Today : 716.20
Palladium Price Close 24-Feb : 711.35
Change : 4.85 or 0.7%

After yesterday's strong recovery, the silver and GOLD PRICE fainted today. Silver lost 113c to shutter Comex at 3448.1c. Gold gave back $12.30 to $1,708.80.

The GOLD PRICE has fallen back below its crucial 150 DMA (now $1,714.56) with its $1,708.80 close today. Down beneath the 40 DMA at $1,685.45 ought to act as a safety net should it fall further. Weak as today was, odds remain with gold since it showed itself so strong this week. However, a close below $1,696 shatters that.

If this plays out as corrections usually do, gold will climb to about $1,750, then plunge once again, either to $1,696 or a little lower. That will take 3 weeks or more to play out.,

The SILVER PRICE has also fallen through its 300 DMA (now 3484c) with today's 3448.1 close. This is not unusual when silver is recovering from a fall through its 300 DMA, judging from history. It can dance back and forth over the 300 DMA before it finally leaves it behind.

On silver's side is the chart that reveals silver has only fallen to the downtrend line (from August) that it broke through in February. This this move could be nothing more than a final kiss good-bye before silver takes off. If that's true, then silver won't fall much further. If not true, then it could hit 3200c.

Market is offering you silver and GOLD at reduced prices. Better buy while you can.

This will have to be short because tornados are touching down all around us and have already ravaged north Alabama not far away. Go home tonight and hug your wife or husband and children and all those you love, and tell them you are glad they are alive so you get to enjoy their company.

My wife Susan got locked in WalMart jail. That's right, they had a "Code Black" and locked down the whole place, herded everybody to the back of the store, and locked it down because of the weather. I thought I was going to have to get a habeas corpus to get her out.

In spite of the Bernancubus Surprise this week that whacked silver and gold on the head with a ball peen hammer, they didn't finish the week so badly, down 2.4% for silver and 3.7% for gold. Stocks have enjoyed all the ups and down of a flatiron this week, platinum and palladium went sideways-ish, while the dollar roared -- well, as much as a little mouse-burp gully-dirt-sorry paper currency created out of thin air and the imagination of central bankers can roar, which ain't too loud. Up 1.4%, but it caught all those euro and yen fans from behind.

Today the dollar added another 64.3 basis points to the 54.1 it gained on Wednesday. Closed over 79 at 79.432, a huge jump clean through the 20 day moving average (78.95) and nearly to the 50 DMA (79.67). Still, the dollar won't convince folks it's serious until it clears 80.12. Euro dropped 0.9% To 1.3198, and has clearly failed at the 50% correction level (about 1.3400). Yen brought the big surprise today by crashing AGAIN, to a new low. Closed 122.23c/Y100 (Y81.81/US$1), down 0.88%. As oversold as it is, it may fall further.

Central banks are doing a dance, and the Bernancubus Surprise was the opening music. They're trying to re-arrange something, but I don't quite see it yet. Since the whole world money supply might as well be one big balloon, maybe they are just shifting the attention from one to the other, the way the fellow with the three walnut shells and a pea distracts your attention.

Stocks are going nowhere, and you might as well accept the news. Dow today went sideways to lower with a puking-sick chart all day long. Down 2.73 to close at 12,977.57. S&P had a WORSE day, losing 4.46 (0.32%) to 1,369.63. Next week will bring pain, suffering, weeping, wailing, and gnashing of teeth for stocks.

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.