Monday, July 30, 2012

The Gold Price and Silver Price have Confirmed their Upside Breakout

Gold Price Close Today : 1619.70
Change : 1.70 or 0.11%

Silver Price Close Today : 2801.0
Change : 53.7 or 1.95%

Gold Silver Ratio Today : 57.826
Change : -1.068 or -1.81%

Silver Gold Ratio Today : 0.01729
Change : 0.000314 or 1.85%

Platinum Price Close Today : 1410.30
Change : 3.60 or 0.26%

Palladium Price Close Today : 587.55
Change : 16.50 or 2.89%

S&P 500 : 1,385.30
Change : -0.67 or -0.05%

Dow In GOLD$ : $166.85
Change : $ (0.19) or -0.11%

Dow in GOLD oz : 8.071
Change : -0.009 or -0.11%

Dow in SILVER oz : 466.73
Change : -9.22 or -1.94%

Dow Industrial : 13,073.01
Change : -2.65 or -0.02%

US Dollar Index : 82.79
Change : 0.115 or 0.14%

The GOLD PRICE baby-stepped up today, adding $1,70 to close Comex $1,619.70. Resistance at $1,625 stopped today's high cold at $1,624.70. Range was only $10, very small and quiet.

Yet GOLD has now made good its escape from the triangle (upside breakout) good for three days. Couldn't ask much more than that.

The SILVER PRICE leapt 2% (53.7 cents) to 2801.4c after a 2823c high. Lo, silver is joining the race! 'Tis not unusual for silver to lag in the first few yards of a rally, as it has the last 3 days. But today it o'erleapt that 2800c resistance. O, yes, the close at 2801.4c looks symbolic only, but it might have been the NGM painting the tape, too, since the aftermarket has boosted silver to 2815c and gold to 1,621.40.

Today's close confirmed the SILVER PRICE breakout from the triangle for the second day, and took silver above the 50 DMA (2777c). Full of hope.

The US DOLLAR INDEX rose 11.5 basis points (0.139%) to end the day at 82.791. This saith not a lot, and certainly doesn't change the dollars immediate direction. Of course, the euro lost 0.28% to $1.2257 so maybe sobriety is again wreaking its hung-over vengeance on euro buyers. Yen also lost 0.25% to 127.91c (Y78.18), which also changes nothing, says nothing, and means nothing.

Now the hard part comes for ECB head Mario Draghi. He fired off the blarney cannon last week, spooking all the birds off the electric lines, but now he has do DO something. Take some action. And what precisely can he do to save the European economy, the euro, and the universe? He's shooting blanks.

Well, the lawyers have started circling. The first inevitable lawsuit in the Libor scandal has been charged as a small New York bank has filed suit alleging it was damaged by Libor price fixing. Y'all ain't seen nothing yet. Odds scream that not one but every bank colluded, and that the Big Brothers in that collusion were the Federal Reserve and the Bank of England, because they were. Central banks' reason for existing is to fix interest rates and inflate.

Have y'all ever seen a road-killed armadillo in the road that's been baking in the sun a couple of days? If you went and picked it up, that stuff that would run out is exactly what's inside the entire financial system, including banking and central banking: corruption and maggots.

STOCKS lost their merriment today when some suspicious soul asked exactly HOW Draghi was going to save the universe. Dow lost 2.65 (0.02%) and closed 13,073.01 after a ragged day. S&P500 lost 0.67 (0.05%) to 1,385.30. Friday's punch through resistance looks now like a fluke, but stocks still have plenty of time to come back, and make highs equal to or better than May highs before the Jaws of Death snap shut. Point to observe: the Jaws WILL snap shut, taking great mouthfuls of capital with them.

By the way, yields on US treasuries staggered again today. That bubble is due to bust, but it's not yet clear whether the needle's been stuck in it. It surely will be, and when that begins the flight out of the dollar will commence.

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.