Wednesday, July 11, 2012

The Gold Price Closed Comex $1,575.20 the Silver Price Rose

Gold Price Close Today : 1575.20
Change : -4.10 or -0.26%

Silver Price Close Today : 2699.5
Change : 14.4 or 0.54%

Gold Silver Ratio Today : 58.352
Change : -0.466 or -0.79%

Silver Gold Ratio Today : 0.01714
Change : 0.000136 or 0.80%

Platinum Price Close Today : 1428.90
Change : -23.40 or -1.61%

Palladium Price Close Today : 581.65
Change : -15.35 or -2.57%

S&P 500 : 1,341.45
Change : -0.02 or 0.00%

Dow In GOLD$ : $165.41
Change : $ (0.19) or -0.11%

Dow in GOLD oz : 8.002
Change : -0.009 or -0.11%

Dow in SILVER oz : 466.92
Change : -4.31 or -0.92%

Dow Industrial : 12,604.53
Change : -48.59 or -0.38%

US Dollar Index : 83.49
Change : 0.093 or 0.11%

For the GOLD PRICE 'twas another day of the Mysterious Big Jiggle, where a climbing gold market is suddenly smacked with huge selling. No matter, gold's low came at $1,567.30 and it closed the day on Comex down $4.10 at $1,575.20. No matter, it remains within the confines of that even-sided triangle. Frustration, thy name is triangle.

The SILVER PRICE gainsaid gold's drop by rising 14.4 cents to 2699.5, a number one-half a symbolic cent below 2700c. Generally silver trend up from yesterday, with a low at 2684.1c but a high at 2725c. It's on the low side of the Bollinger Bands, but other than today's little rise, gives little sign of chafing at its low estate or planning a sudden rally. About the time I become complacent is when something big happens, I remind myself.

Today's action changes nothing. The SILVER and GOLD PRICE are still working through a correction off last year's highs, and stand smack in the midst of usual seasonal lows and weakness. I do not expect we will see prices lower than already witnessed. Premiums on physical silver point to very strong demand, whether that is showing up in the paper price or not.

I reckon there are worse things than being a natural born fool from Tennessee, and surely one of 'em is being that sort of fool who believes government promises. I'm foolish, but I ain't THAT foolish.

MF Global turned keel up and took a billion dollars in client money down with it, and the CEO (Criminal Entwined with Obama) Jon Corzine walked off scot-free. That ought to have told even the hard-boiledest fool that all the government promises of regulating and overseeing markets and -- har-de-har-har! -- justice and even trustworthy markets had all been shattered forever and ever. Well, not many months later and a few days ago Peregrine Financial Group turned keel up, and the same tricks are suspected.

Where were the regulators? Where the CFTC overseers? The SEC? Quis custodiet custodes ipsos? All the custodes had gone for a nap, it seems.

Y'all, this fundamentally alters the entire map. If markets and brokerages themselves cannot be trusted, the North Pole has shifted and y'all had better shift for yourselves, and stop falling for those government promises like a bunch of gullible tourists from up North.

The FOMC released minutes of its June meeting and those showed growing sentiment for printing more money to "stimulate" (read: "ruin") the economy. That ought to have sent the dollar down and stocks up, one might surmise, but not so. The 83.50 mark once again contained the US dollar index, which rose today only 9.3 basis points to 83.494.

Ahh, a pretty picture, the 24 hour chart! Dollar breaks out upside about 10:00 a.m., gets slammed about 11:15, bounces up again as high as 83.61, but does a breakout through support attract any buyers? Not by the hair on the Nice Government Men's chinny-chin-chin! Nay, it closed down below the symbolic 83.50.

The suspicious observer can only surmise that the dollar must be contained lest the euro fall utterly and suddenly to complete worthlessness. Once again today the euro made a new low, $1.2213 and closed down 0.13% at $1.2237. All this has the feel of last summer when the euro crisis smoldered steadily on but never quite burst into flame.

Yen waxed impertinent today and rose above 126 cent resistance, only to have its jaws slapped. Ended down 0.41% at 125.49c/Y100 (Y79.69/US$1).

Stocks found no comfort in the widely bruited suspicion the Fed draweth nigher to speedier inflation. Dow lost 48.59 (0.38%) and closed at 12,604.53. That's below the neckline of the Head and Shoulders Top formed March - May, below the 20 day moving average (12,708) and the 50 DMA (12,655.70). All this signals lower prices. A close below 12,450 puts the petal to the metal downside.

The S&P500 has never rallied over the neckline of its HandS, only up to it. It closed today nearly unchanged, down 0.02 at 1,341.45, barely below the 20 DMA (1,343) and barely above the 50 DMA (1,336). Hark! The winds from the future blow the sounds of weeping, wailing, and gnashing teeth.

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.