Friday, April 20, 2012

Higher Gold Price Coming Soon a Break Above $1,682 Will Prove it Time to Stop Waiting and Start Buying

Gold Price Close Today : 1,642.10
Gold Price Close 13-Apr : 1,659.10
Change : -17.00 or -1.0%

Silver Price Close Today : 3164.4
Silver Price Close 13-Apr : 3138
Change : 26.40 or 0.8%

Gold Silver Ratio Today : 51.893
Gold Silver Ratio 13-Apr : 52.871
Change : -0.98 or -1.9%

Silver Gold Ratio : 0.01927
Silver Gold Ratio 13-Apr : 0.01891
Change : 0.00036 or 1.9%

Dow in Gold Dollars : $ 164.02
Dow in Gold Dollars 13-Apr : $ 160.10
Change : $ 3.92 or 2.4%

Dow in Gold Ounces : 7.935
Dow in Gold Ounces 13-Apr : 7.745
Change : 0.19 or 2.4%

Dow in Silver Ounces : 411.75
Dow in Silver Ounces 13-Apr : 409.48
Change : 2.26 or 0.6%

Dow Industrial : 13,029.26
Dow Industrial 13-Apr : 12,849.59
Change : 179.67 or 1.4%

S&P 500 : 1,378.53
S&P 500 13-Apr : 1,370.26
Change : 8.27 or 0.6%

US Dollar Index : 79.144
US Dollar Index 13-Apr : 79.888
Change : -0.744 or -0.9%

Platinum Price Close Today : 1,577.40
Platinum Price Close 13-Apr : 1,581.60
Change : -4.20 or -0.3%

Palladium Price Close Today : 675.00
Palladium Price Close 13-Apr : 643.20
Change : 31.80 or 4.9%

GOLD PRICE ranged today a meager $7.74, practically dead and not twitching. Rose $1.50 to $1,642.10, but fell $17 (1%) for the week.

Aha! What's that I see on a one year chart? Could that be a bullish falling wedge that began in March and neareth its completion? Why, yes, indeed it could be, and is. It also argues that gold will not again visit $1,600.

The sad time of this long GOLD PRICE correction since the high last August draweth to a close. It may yet be weeks away, but higher gold is coming soon. A break through $1,682 will prove it, a break below $1,600 gainsays it, but only for the nonce.

SILVER PRICE contended against gold today, dropping 12.7c (Would you even pick up a sum that big, a dime and three pennies?) to close at 3164.4c. Range was passing narrow at 34c (high 3190, low 3156.1). Clearly, everybody has run for cover until the Resplendent have returned to their dens.

The SILVER PRICE, too, has formed a falling wedge since the March high, a formation that usually resolves in a rally. Silver needs to clear 3200c, then 3250c to prove a rally. Could drop as low as 3000c without violating the falling wedge. Must hold 3100c or visit that 3000c.

Time is growing full, time to stop waiting and start buying silver and gold.

My, O, my, I look at markets today and think with Voltaire's Candide, "This is the best of all possible worlds." Until it isn't.

I suspect that markets have hushed their mouths, covered their heads, and hunkered down because the Resplendent Ones of the Very Important IMF are meeting in Washington this weekend, and one never knows what the Resplendent might do to upset everyone's applecarts.

Thus markets moved little this week: gold down a twinch, silver up the same, stocks better a bit, and the dollar index make a new low today while the Euro perked up.

One (a suspicious one) suspects that news might have leaked about the Resplendent's plans because the dollar hit a new low today while the euro gained 0.64% to $1.3220, gapping up for a new high. On the other hand, another suspicious one might deduce the Resplendent manipulated the dollar lower and the euro higher to sell something or other at the VI IMF meeting. One with truly important concerns, like a sock drawer that needs re-arranging, would not care either way, since both the Resplendent and all their fiat currencies are sliding down the Way of the Dodo even as we speak.

Technically today's dollar index slide took the scrofulous US currency down to a new low for the move AND below its 20 day moving average, leaving the dollar looking event scabbier than usual.

The yen closed up 0.13% (nothing) to 122.66c (Y81.53/US$1), improving nothing, changing nothing.

I reckon someone in the Nice Government Men's cave decided that the Dow shouldn't finish a week below 13,000, so the Dow rose today 65.16 points to 13,029.26. S&P500 rose 8.22 to 1,376.92

Delude not yourself, neither hug to your breast the phantom of groundless hope. Dow is tracing out a head and shoulders reversal pattern and is now putting finishing touches on the right and final shoulder. Shouldn't rise again above 13,150, and when it crosses that neckline at 12,700, 'twill nose dive 600 points before you can say, "Bernancubus, call the NGM!"

Y'all enjoy your weekend!

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.