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Thursday, May 03, 2012

Gold Price Dropped $19.20 to Close Comex $1,634.20 Mustn't Fall Below $1,600

Gold Price Close Today : 1634.20
Change : (19.20) or -1.16%

Silver Price Close Today : 2995.90
Change : 63.3 cents or -2.07%

Gold Silver Ratio Today : 54.548
Change : 0.501 or 0.93%

Silver Gold Ratio Today : 0.01833
Change : -0.000170 or -0.92%

Platinum Price Close Today : 1532.30
Change : -28.20 or -1.81%

Palladium Price Close Today : 660.40
Change : -6.75 or -1.01%

S&P 500 : 1,391.57
Change : -10.74 or -0.77%

Dow In GOLD$ : $167.06
Change : $ 1.18 or 0.71%

Dow in GOLD oz : 8.081
Change : 0.057 or 0.71%

Dow in SILVER oz : 440.82
Change : 7.10 or 1.64%

Dow Industrial : 13,206.59
Change : -61.98 or -0.47%

US Dollar Index : 79.21
Change : 0.016 or 0.02%

It was one more bruising day for the silver and GOLD PRICE. Gold dropped $19.20 (1.16%) to close Comex at $1,634.20. That close came near the low of today's range, $1,649.30 - 1,631.16. The GOLD PRICE breaking $1,625 would suck a lot of heart out of the market, but the crucial line in the sand is $1,600.

Look here at this: Bad as GOLD fell today, it did not fall again beneath the upper boundary of that Falling Wedge y'all are probably tired of hearing about. If it does, it could fall all the way to the lower boundary , now about $1,580.

SILVER hurt more than gold today. It dropped 63.3 cents (2.07%) to close Comex at the Wal-Mart price of 2995.9c.

That's the second trip in a month to 3000c. One more and silver falls through.

The SILVER PRICE DID fall through the upper line of its falling wedge, which argues for a drop to 2950 cents. On the other hand (I sound like an economist) today's close marks a double bottom for silver, and we'll have to see whether that holds.

Some time soon will come a bottom. Just about the time even I was getting down a wonderful person called today to remind me that I had sold her silver and gold in 1998. Her $5,000 spent then would bring about $32,000 right now. The bull market has not ended, and more of those gains will come.

In a burst of Pharisaical arrogance unmatched by the entire history of the Soviet Politburo or the Ancien Regime, the European Central Bank met in Spain today rather than its usual German, "to be better known and closer to the citizens." To Spain, which is in recession and has a 24% unemployment (admitted, at least) and 50% unemployment among young people, ECB El Presidente Mario "Apparatchik of the Big Banks" Draghi said they (and the other governments) ought to get a grip on their "bloated budgets." This resembles cutting a man's legs off, then ridiculing him because he cannot run very fast.

Somewhere, some latter-day Madame is knitting, knitting. Écoutez! The click of the needles.

STOCKS today looked -- well, how can I say it nicely?-- right sick today, having completed a head and shoulders top on the five day market. Dow closed today down 61.98 (0.47%) to 13,206.59. A break below 13,180 starts an avalanche. S&P500 lost its grip on the morale-critical 1400 level to close down 10.74 (0.77%) at 1,391.57.

Yes, I know the entire stock-selling world is chortling over higher prices, but watch out. Look for a sharp rally, followed by a collapse.

CURRENCIES today trod water. Nothing there to talk about, except it's interesting that the euro FELL on news the ECB would not lower interest rates. Interesting because keeping interest rates higher should send the currency's price up, not down. But what do I know? I'm the guy who looks for the pigs and goats when anybody talks about "stock."

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
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© 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. No, I don't.