Thursday, August 30, 2012

Gold Price Closed Down at $1,653.50 but 5 Day Chart is just Trading Sideways with no New Highs or Lows

Gold Price Close Today : 1653.50
Change : -6.00 or -0.36%

Silver Price Close Today : 30.367
Change : -0.470 or -1.52%

Gold Silver Ratio Today : 54.451
Change : 0.635 or 1.18%

Silver Gold Ratio Today : 0.01837
Change : -0.000217 or -1.17%

Platinum Price Close Today : 1502.70
Change : -16.60 or -1.09%

Palladium Price Close Today : 614.90
Change : -19.95 or -3.14%

S&P 500 : 1,399.48
Change : -11.01 or -0.78%

Dow In GOLD$ : $162.53
Change : $ (0.73) or -0.44%

Dow in GOLD oz : 7.863
Change : -0.035 or -0.44%

Dow in SILVER oz : 428.12
Change : 3.06 or 0.72%

Dow Industrial : 13,000.71
Change : -106.77 or -0.81%

US Dollar Index : 81.56
Change : 0.185 or 0.23%

I understand the GOLD PRICE closed lower today, down $6 to $1,653.50, but on the 5 day chart it looks like nothing at all but a sideways range, no new low, no new high, just about the same range as yesterday. High at $1,663.84, low at $1652.3. Close below $1,645 gainsays the flag on the GOLD chart, so watch out.

The SILVER PRICE, on the other hand, fell 47 cents today to 3036.7 and made a new low for the move at 3022.5, about as far as it can travel and still keep that flag in play. Closed nearly on, but a smidge below, its 200 DMA (3042).

Times like these make me feel about central banks, central bankers, and fiat money the same way a ten year old feels about chicken pox and liver.

Y'all be patient. Whatever Ben bloviates, y'all already know it'll be something everybody already knows. He's full of clich├ęs like, "The youth of today are the leaders of tomorrow" and other remarkably deep insights. I'd rather fall into starving chiggers than have to listen to one of his speeches.

Stocks must be even weaker than I thought, since the Dow plunged 106.77 (0.81%) today to 13,000.71 on news Ben the Bandit MIGHT not announce in his Jackson Hole speech tomorrow a new plan to inflate more. I'd just as soon Bernanke and the whole Crowd of the Mighty climbed down in that Jackson Hole and pulled it right in over the top of 'em.

My, my, that sure was a photogenic close, 13,000.71, a thin 0.71 points above the morale-bustin' 13,000 level. S&P500 lost 11.01 (0.78%) and ended at 1,399.48 -- whoops!. Stands right on the bottom boundary of that rising wedge, and the neckline of the January-May head and shoulders neckline. Wouldn't take more than a mouse burp to push it over the cliff.

Well, well, dollar index performed today about as expected -- down a leetle yesterday, up a leetle today. Trading now 81.689, up 14.2 basis points. Trend is down, but the Nice Government Men are stretching it out as long as they dare.

Euro backed off 0.19% to $1.2506, sidling sideways. Yen did the same, but rose 0.14%. Nobody's moving, afraid of imminent fire from Ben's Blarney Cannon.

I walked into the kitchen yesterday and thought the Last Great Chicken Slaughter had happened. Naked chickens were piled chin high in the sink. Then I noticed they were all in plastic bags. Thawing. Oh, yeah, my wife Susan was getting ready to smoke them for the Bodacious Hoedown on Saturday. She's over near the barn now, six smokers billowing like blast furnaces, happy as little girl with a new kitten.

Y'all are still welcome to join us. Read about it at

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.