Friday, June 22, 2012

The Gold Price Plunged a Horrific 3.4 Percent this Week Physical Demand is Huge

Gold Price Close Today : 1,571.20
Gold Price Close 15-Jun : 1,627.00
Change : -55.80 or -3.4%

Silver Price Close Today : 2682
Silver Price Close 15-Jun : 2873.4
Change : -191.40 or -6.7%

Gold Silver Ratio Today : 58.583
Gold Silver Ratio 15-Jun : 56.623
Change : 1.96 or 3.5%

Silver Gold Ratio : 0.01707
Silver Gold Ratio 15-Jun : 0.01766
Change : -0.00059 or -3.3%

Dow in Gold Dollars : $ 166.39
Dow in Gold Dollars 15-Jun : $ 162.21
Change : $ 4.18 or 2.6%

Dow in Gold Ounces : 8.049
Dow in Gold Ounces 15-Jun : 7.847
Change : 0.20 or 2.6%

Dow in Silver Ounces : 471.54
Dow in Silver Ounces 15-Jun : 444.32
Change : 27.22 or 6.1%

Dow Industrial : 12,646.78
Dow Industrial 15-Jun : 12,767.17
Change : -120.39 or -0.9%

S&P 500 : 1,335.02
S&P 500 15-Jun : 1,342.84
Change : -7.82 or -0.6%

US Dollar Index : 82.256
US Dollar Index 15-Jun : 81.547
Change : 0.709 or 0.9%

Platinum Price Close Today : 1,427.45
Platinum Price Close 15-Jun : 1,485.70
Change : -58.25 or -3.9%

Palladium Price Close Today : 610.50
Palladium Price Close 15-Jun : 629.10
Change : -18.60 or -3.0%

GOLD PRICE bounced today after plunging a horrifying 3.4% this week. Closed $1,571.20 today, up $6.70, but that sayeth little. The SILVER PRICE lost 1.3C to end at 2682c.

Long and short is this: If the GOLD PRICE doesn't hold $1,525 and silver 2615c, they will drop much further, as low as $1,450 and 2250c. You will know as they unfold next week, because if they intend to continue falling, Monday and Tuesday will be painful days. On the other hand, physical demand at these prices is huge. I nearly didn't write a commentary this evening because I am so washed out from trying to help all the callers. For silver and gold to fall much further, those buyers would have to disappear. However, if metals do fall, expect even more buyers to crawl out of their hiding places.

Nothing significant has changed for those who follow the primary trend. SILVER and GOLD are correcting. So what? They've been correcting since April 2011 and August 2011. Corrections can last up to 18 months. Stop panicking. Has the Federal Reserve stopped inflating? The rest of the world's central banks? Has common sense, honesty, and financial probity suddenly seized the world's leaders and shaken some backbone into them, like a terrier shaking a rat? Sorry, no. And as long as their idiocy, treason, and parasitism continues, silver and gold will remain in a primary trend, and we are following NOT the daily or weekly fluctuations, but the LONG TERM PRIMARY TREND which hath yet years to run.

Everything but the dollar took a beating this week when Moody's announced it was downgrading the credit of 15 megabanks. No, it makes no sense since every fractional reserve bank is always insolvent and these have been rotten since at least 2006 and everybody knows it and government has bailed them out time and again, but WHAT HO! Trouble with the banks! Markets slap themselves on the forehead as if they'd never imagined such a threat to financial stability.

Meanwhile in Europe, where widespread bank insolvency and national government bankruptcies loom, the eurocrats are cooking up yet another "solution" which bandaids about $700 bn onto a, say, $20 trillion problem. Right, that'll work like square wheels on a wagon.

Yet we live in a world where even lemmings, in sufficient numbers, can suffocate you, and we have to deal with it. So let's look at 'em one at a time.

STOCKS broke this week. A slim chance exists they might make one more rise, but that's like drawing to a royal flush when holding the Ace, Queen, Jack, and 10 of spades. Much more pain will follow in stocks. Today's bounce meant nothing.

US DOLLAR flattened today, losing a token 14 basis points to close at 82.256. Dollar has turned up again, which is wreaking havoc elsewhere. Nice Government Men can't want that dollar to appreciate so strongly against the Euro and yen, but what can they do? Well, following the usual pattern, something stupid. Very stupid. Count on that.

Euro lost 0.23% today to $1.2572. Headed to $1.2000 and lower. Yen suffered also, closed 124.35c/Y100, down 0.20%. No strength there.

So calm down, throw a steak on the grill, pour yourself something soothing to drink, and enjoy supper with your spouse and family. A hundred years from now you won't remember a bit of this anxiety.

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. No, I don't.