Wednesday, July 18, 2012

The Gold Price Merely Moved Sideways Today Bull Market Remains Buy the Drops

Gold Price Close Today : 1589.10
Change : -2.10 or -0.13%

Silver Price Close Today : 2729.20
Change : -00.5 or -0.02%

Gold Silver Ratio Today : 58.226
Change : -0.066 or -0.11%

Silver Gold Ratio Today : 0.01717
Change : 0.000020 or 0.11%

Platinum Price Close Today : 1418.30
Change : 3.50 or 0.25%

Palladium Price Close Today : 582.10
Change : 5.55 or 0.96%

S&P 500 : 1,363.67
Change : 10.03 or 0.74%

Dow In GOLD$ : $166.58
Change : $ 1.25 or 0.76%

Dow in GOLD oz : 8.058
Change : 0.061 or 0.76%

Dow in SILVER oz : 469.20
Change : 2.96 or 0.63%

Dow Industrial : 12,805.54
Change : 78.33 or 0.62%

US Dollar Index : 83.02
Change : -0.131 or -0.16%

Neither silver nor the GOLD PRICE gave up any secrets today. Gold shaved off $2.10 to end at $1,589.10. Silver lost -- get your microscope ready -- one half cent to close 2729.2.

The GOLD PRICE low stretched lower than yesterday at $1,571.80 but the high reached higher, to $1,599. And WHOOPS! There's another one of those funny formations, where gold begins to rise sharply and within a little while is slapped winded and driven down. Jes' an accident, I bet, an artifact, a fluke, or NGM playing around.

The SILVER PRICE low came at 2680.5, same as yesterday's, but the high reached higher, to 2759.5. Like it's big brother, silver got slapped around by the Invisible Hand today. Closed slap on the 20 day moving average (2729c).

Today's markets merely moved sideways and changed nothing. SILVER and GOLD are marching in place through the summer doldrums. Buy the drops.

I may be the king fool of all fools, but because I am I have installed a very, very sensitive hogwash meter so I'm not so easily gulled. Well, I was a-minding my own business today, just leaned back and taking it easy when that hogwash meter started squawking and blowing and the needle pushed clean over past the red. "Man!" I thought, "the presidential campaign must be closing in on Tennessee!"

I should have known better, it was just a Bernanke alert. He was blowing smoke to the congress today, and they were all a-posing and a-posturing along with him as if something they did or he said actually made a difference, when they all know 'tain't nothing in the world but Grade A ain't fit for nothing but hogs hogwash.

Today Bernanke the Bloviator warned 'em we were sure nuff in trouble if congress doesn't do something to dodge a budget crisis. Yep, unless congress lowers taxes and increases spending, why, the whole blessed economy will fall over the cliff into a recession. Boss Bloviator didn't bother to explain how we would be able to tell the recession then from the one we have now.

Cause I'm only a fool, I have to make lists so I can remember things. Yesterday, remember, I gave y'all a list of Verities, and remember Rules 2 and 4:

"Second, they care not a hoot for the long run. Like the pseudo-economist Keynes said, "In the long run we're all dead." All they care about is keeping the system running until they get off at 5:00 p.m. Permanent reforms, economic justice, equal opportunity, debt relief, rule of law, all these are just labels to make the public drink the jugs of hogwash.

"Fourth, and most important for y'all to understand because it determines the future, massive debt and government deficit spending are not an accident, not an excess of the system, but as organic to it as blood to the human body. Therefore, though they may criticize borrowing and spending, they cannot stop it because they must INFLATE OR DIE. That is the system's nature, and that is why silver and gold offer such promise. They will keep inflating, and inflating drives silver and gold up."

Fool that I am, I rest my case. And I dialed down the sensitivity on my hogwash meter. Living only 750 miles from Washington, it'll drive me crazy otherwise.

Markets today brought no great surprises. Dollar index continued to erode, down 13.1 basis points (0.17%) to 83.024, but still hanging on by its toes to that 83 mark. Euro took advantage of the dollar's head cold to creep up 0.17% to $1.2292, nothing to write to Brussels about. Yen gave back some of yesterday's gains falling 0.25% to 126.48 cents/100 yen (Y79.06/US$1). Dropped back below the 200 DMA, so that might put the finish to its climb.

Stocks bounced up off the bottom boundary of their rising wedge, but this changeth not the picture. Dow gained 0.62% to 12,805.54 (78.33 points) and the S&P500 gained 0.74% (10.03 points) to 1,363.67. A fall lieth in the future.

I read a couple of articles that examined a New York Fed study that implied the S&P500 would be 50% lower [sic] were it not for the Fed's actions. Also said that the bulk of stock returns for more than a decade have come from Fed actions. Y'all can read 'em at or Better take a couple of No-Doz or drink a quart of coffee before y'all attempt that second one.

Ask yourself: what does that say about the US economy? The US stock market? The limits of Fed or government action? Ain't no markets, ain't no economy, just a cardboard cutout held up by printing money.

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.