Monday, April 02, 2012

I Believe the Gold Price Bottomed Last Week Targeting at Least $1,730

Gold Price Close Today : 1677.50
Change : 8.20 or 0.49%

Silver Price Close Today : 3308.30
Change : 61.4 cents or 1.89%

Gold Silver Ratio Today : 50.706
Change : -0.706 or -1.37%

Silver Gold Ratio Today : 0.01972
Change : 0.000271 or 1.39%

Platinum Price Close Today : 1649.90
Change : 10.50 or 0.64%

Palladium Price Close Today : 655.65
Change : 1.75 or 0.27%

S&P 500 : 1,419.04
Change : 10.57 or 0.75%

Dow In GOLD$ : $163.46
Change : $ (0.14) or -0.08%

Dow in GOLD oz : 7.907
Change : -0.007 or -0.08%

Dow in SILVER oz : 400.95
Change : -5.97 or -1.47%

Dow Industrial : 13,264.49
Change : 52.45 or 0.40%

US Dollar Index : 78.88
Change : -0.126 or -0.16%

GOLD PRICE targets a move to $1,730 at least, and right now I'm about the only soul (other than the perennial gold and silver bulls who always see higher prices tomorrow) who noticed that silver and gold bottomed last week. Left behind on both charts is a V-bottom Thursday, and a climb out of that. Resembles an angular upside down head and shoulders, but a reversal formation it certainly is.

But I'm nervous because I am only a natural born fool from Tennessee, well known for out- smarting myself. Take enough whippings, and it'll make you keerful.

GOLD PRICE today rose $8.20 to $1,677.50 when Comex hit the closing bell. High reached for $1,683.20, while the low fell no further than $1,663.

If gold's chart looks good, SILVER's looks STERLING. (Owch. Pun penalty!) V-bottom drawn last week targets at least 3360, and it jumped 61.4c today to close at 3308.3. High came at 3320, low at 3235.6c. All that's okay, it was 3300c we had to pass first.

I believe silver and gold bottomed last week and will not post lower bottoms, so it's time to buy, while the public's delusional follies of Happy Days Are Here Again are depressing the SILVER and GOLD PRICE.

'Twas a good day for stocks, but better for gold, and better still for silver. US Dollar index? Kinda scabby.

Stocks bee-barely made a new high today. Dow rose 52.45 (+0.465) to 13,264.49, versus 15 March's 13,252.75. S&P excelled the Dow, up 10.57 (0.75%)

to 1,419.04 vs. 1,416.51 on 26 March.

Surprise, that clears up nothing. Stocks yet speak with fork├ęd tongue (bifurcated lingual organ, for you Latinists), for the one month chart showeth no more than a deadly triple top. Thus to prove themselves themselves genuinely rallying, stocks must clear that (roughly 13,250 hurdle convincingly, i.e., by 2 or 3%, not two or three points.

Y'all already know my opinion on stocks, formed as it is by a longstanding and unbroken bear market (primary down trend), but I will leave it there lest I break my own rules and descend to the scatological.

Basing a nation's money supply on a paper currency created at will by a private central bank makes about as much sense as putting the nation on a cocaine standard. Right now the US dollar index is only vibrating and oscillating, maybe breaking down, maybe not, but really doing nothing. Dropped today 12.6 basis points (0.16% to 78.878), but that adds nothing to the violation of support long ago noted. No direction.

I know loads of folks believe the euro is better than the US dollar, which only goes to explain why people like Karl Marx, Josef Stalin, and Adolf Hitler were able to collect so many followers. Euro can't go forward and won't go back, but I reckon it will resolve this by disappointing the hopers. Closed today down 0.16% at 1.3321.

Japanese yen continues to confirm that it has bottomed after that nearly 2 month slide. Closed above its 20 DMA today, up 0.95% to 121.84c (82.07). Should keep on gaining.

On this great day, 2 April 1792 the US Congress passed the Coinage Act, authorizing the "dollar" of silver of 371.25 grains fine silver as the country's standard coin against which all other coins would be valued, including the roughly half ounce gold Eagle ("valued at ten dollars"), half-eagle, and quarter eagle. 1/10 dollars -- "dismes" -- quarters, and halves were also to be minted, at precisely 1/10, 1/4, and 1/2 the silver content of the dollar. As I have studied this act for more than 40 years, I have been continuously impressed by these legislators' depth of monetary understanding.

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.