Tuesday, June 05, 2012

Gold Price Closed $1,615.20 Next Move is Up Breaking Through $1,630

Gold Price Close Today : 1615.20
Change : 3.00 or 0.19%

Silver Price Close Today : 2839.0
Change : 39.8 or 1.42%

Gold Silver Ratio Today : 56.893
Change : -0.702 or -1.22%

Silver Gold Ratio Today : 0.01758
Change : 0.000214 or 1.23%

Platinum Price Close Today : 1439.00
Change : 13.20 or 0.93%

Palladium Price Close Today : 618.05
Change : 5.80 or 0.95%

S&P 500 : 1,285.50
Change : 7.32 or 0.57%

Dow In GOLD$ : $155.22
Change : $ 0.07 or 0.04%

Dow in GOLD oz : 7.509
Change : 0.003 or 0.04%

Dow in SILVER oz : 427.19
Change : -5.13 or -1.19%

Dow Industrial : 12,127.95
Change : 26.48 or 0.22%

US Dollar Index : 82.80
Change : 0.408 or 0.50%

GOLD PRICE has flatlined for two days, holding always above $1,610. Look closer at the flat-line and you'll see a series of corrective waves and a long narrow triangle. Range narrowed today to $1,622 - $1,612.35. Next move is UP, breaking through $1,620 - $1,630, and likely at a single bound. You will know I am wrong and swimming up to my eyebrows in hogwash if gold closes below $1,608.

Today GOLD PRICE shut down Comex at $1,615.20, up a small but respectable $3.00.

Once again for perspective's sake, gold is hugging up to its 50 dma ($1,623.98). Once it punctures that paper ceiling at $1,630, 'twill run brave and quick for $1,682.

The SILVER PRICE chart mirrors gold, mostly. Made a low yesterday at 2799c, and a mite higher low today at 2808c. Still, it pushed against that upper boundary at 2860 (high came at 2857). Once it pierces 2860c, it will rapidly reach escape velocity. Rose today 39.8 cents to 2839c.

Spain complained today that markets are slamming the credit door in its face and Europe needs to bail out its banks. Europe received that suggestion with something less than gay enthusiasm. Half Spain's workers under 25 are unemployed. Once they explode, they will be hard to force Spain back into Bank Bail-out Mode.

Shocked! I was shocked when I looked at the chart of the Dow in Gold Dollars today. Not only did it gap down on 17 May and 18 May, but again Friday, leaving a massive gap behind. Fell from G$163.72 (7.92 oz) to G$158.14 (7.650 oz), then tumbled again Monday and today to close today at G$155.22 (7.509 oz). Dow in Silver has seen much the same trouncing, falling from 466.54 oz on 16 May to 427.19 today.

I can't stand people who say "I told you so," and am thus prevented from reminding y'all that the Dow in Gold Dollars charts had been warning that stocks were about to crash against gold.

The pleas for help coming from Spain kidney punched the euro today. It fell 0.34% to $1.2454. Just for sight-seeing's sake, y'all might jot down that the Euro's last low (Friday) was at $1.2288. If it dares to breach that mark, 'twill capsize like a scuttled garbage scow and won't surface again until some depth below $1.2000.

The yen last week gapped up, traded higher, and left what looks suspiciously like an island reversal. Another gap down, isolating that island, forewarns that the yen will again plumb the depths. Closed at 126.98 c (Y78.75/US$1), down 0.52%.

Picking one of these scrofulous fiat currencies over another is like visiting a sleazy all-night dance hall and trying to pick which partner will leave you with the fewest contagious diseases. US dollar index today rose 40.8 basis points (0.52%) to end at 82.798. That's pretty, but doesn't say anything of substance. Dollar must better its Friday high (83.54) to turn upward, and close below 81.78 (January high) to tell us something unambiguous.

STOCKS today were pitiful, like watching a hopelessly unfunny comedian telling a joke. It's embarrassing. Charts for today look like washrags blowing on a clothes line, no real direction but the Dow did manage to steal 26.48 points (0.22%) somewhere for a 12,127.95 close. S&P500 gained more proportionally, 7.32 points (0.57%) to cap the day at 1,285.50.

Put this into perspective: S&P500 closed today plumb on its 200 day moving average (1,285.68), after falling through it on Friday. Dow is taking on even more water, way below its 200 DMA at $12,263.45. As I explained Friday, both have broken down thru the neckline of Head and Shoulders formations, both have punched through support at the November highs, and both look as sick and green as a ten-year old boy smoking cheap cigars. Y'all had best protect yourselves by selling stocks and putting the proceeds into silver and gold.

"What! Moneychanger, you mean I should sell even the stocks in my IRA? Even though they’re below water?" Naww, I don't mean that, I think you should hold on to them until they recover, in, oh, say, 2035. OF COURSE I mean that, I mean sell those stocks so fast it'll make your broker's head swim and his secretary's, too.

On that black day 5 June 1933 Franklin Delano Roosevelt took the United States off the gold standard. Many warned that it would be the end of American civilization, but they were wrong. That already happened when silver was demonetized in 1873 and the South was invaded in 1861.


Tomorrow, Thursday, and Friday I will be travelling and so will not be publishing any commentaries. God willing, I will return on Monday.

My dear wife Susan ascertained for certain today that she will very soon have to undergo surgery to replace her [big] heart's mitral valve. She had a mitral valve repair nearly 4 years ago. She's not much worried about it, but I'll be holding my breath for six months after the surgery. Would y'all do me the gracious favor of praying for a successful surgery for Susan and a speedy recovery? And pray that God would give me grace not to lose my mind entirely.

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. No, I don't.