Thursday, July 12, 2012

The Gold Price is Trading Within a Narrowing Range and Will Break Out Rallying

Gold Price Close Today : 1564.90
Change : -10.30 or -0.65%

Silver Price Close Today : 2713.60
Change : 14.1 or 0.52%

Gold Silver Ratio Today : 57.669
Change : -0.683 or -1.17%

Silver Gold Ratio Today : 0.01734
Change : 0.000203 or 1.18%

Platinum Price Close Today : 1409.80
Change : -23.40 or -1.63%

Palladium Price Close Today : 573.50
Change : -15.35 or -2.61%

S&P 500 : 1,334.76
Change : -6.69 or -0.50%

Dow In GOLD$ : $166.09
Change : $ 0.69 or 0.42%

Dow in GOLD oz : 8.035
Change : 0.034 or 0.42%

Dow in SILVER oz : 463.34
Change : -3.58 or -0.77%

Dow Industrial : 12,573.27
Change : -31.26 or -0.25%

US Dollar Index : 83.63
Change : 0.193 or 0.23%

The GOLD PRICE lost $10.30 to close at $1,564.90. The SILVER PRICE rose again today, up 14.1 cents to 2713.6 and above 2700c resistance.

I am still riding the same horse. The GOLD PRICE is trading within that even-sided triangle, and today completed its move from the top boundary on 2 July to the bottom boundary. Next it will trade up toward that top boundary, and one day will trade through it and break out rallying. Only a close below $1,547.50 would gainsay this outlook.

Yes, that does mean this is a low risk place to buy gold.

The SILVER PRICE 5-day chart shows a double bottom with today's low at 2648c. Upsurge off that low, beginning about 9:30, was powerful and left gaps behind. Silver keeps on refusing to stay down, a very good sign, plus the premium on 90% silver coin remains high, signalling strong physical demand.

Yep, I'd buy silver here, too.

Stocks -- Hogwash. Hogwash. Either its hogwash, or I am too durned dumb to understand, and I will admit that ever looms a possibility.

These stocks which investors have been misled to believe profit from central banks' inflating -- fell and the dollar rose on FOMC notes revealing that the criminals running the Fed are leaning toward more inflation. Y'all explain this to me, cause I am simply too thick headed to get it: the Fed is going to print more dollars, so the value will surely erode, but people are rushing to buy them? This is the same sort of broken logic that a man with a stick uses to fight off a nest full of hornets he has disturbed. He's got it ALL wrong if he thinks standing and fighting with hornets is a workable plan.

But Mercy! When you cheapen a nation's currency for 10 decades, and erect institutions like central banks and government agencies whose sole purpose is to feed like tapeworms off the public or enable other parasites to feed, is anybody surprised when the ability to think is cheapened, too? They already take PAPER as money, and believe it is. How goofy is that?

Something's at work here and I'm not sure what, but I suspect it bodes well for silver and gold. For two days silver has finished higher while gold dropped -- that's more than a little unusual. Then too, today's attacks on gold left it in the triangle and bloody but unconquered. Maybe time is running out for the Central Bank Masters of the Universe.

Scrofulous US dollar index finally broke through 83.50, but without much enthusiasm. It rose 19.3 basis points to 83.624, up 0.25%. For the next few days that ought to leave the dollar out of breath, although breaking through 83.50 today hints that the dollar will rise further. As always, however, it must confirm by moving higher soon. Downside it must not fall under the 81.52 line.

Scrofulous yen rose 0.61% today to 126.16 cents per 100 yen (Y79.26/US$1). Changed nothing on its downward trending chart, and leaves it below the 50 day moving average (125.76).

Scrofulous, pustulous euro dropped 0.27% today to close $1.2205, by way of a new low at $1.2167. Just seems nothing the Eurocrats do works any improvement -- bail out Greece, bail out Spanish banks, bail out Spain -- their boat just keeps on sinking, no matter how fast they bail it out. A reader asked me which fiat currency he should buy if getting out of euros -- NONE! I said. Yen, dollar, euro, they're all rotten. Use those fiat currencies to buy silver or gold while people are still willing to accept paper and electrons for real stuff.

I don't want to hurt anybody's feelings, but stocks just keep on looking sicker and sicker. The cardboard Dow lost 31.26 today (0.25%) to end at 12,573.27. That sounds like poor performance until you learn that it hit its low early in the day at 12,492. Climbing back up to almost unchanged was a victory of sorts. It won't last, though. Dow is chipping at recent support (since June) and threatened to pierce it today. 200 DMA and the last low are both at 12,450, so when the Dow crosses that line it will blow a foghorn that will scare every rat off the ship, 'cept the deaf ones.

S&P500 don't look that good. Lost 6.69 (0.5%) today to 1,334.76. Only safety net below is the 200 DMA at 1,306.60. Sorrow waits in the not distant future.

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.