Friday, August 10, 2012

Gold Price Up $13.70 this Week and Remains on Trajectory Buy Now and Beat the September Rush

Gold Price Close Today : 1,619.70
Gold Price Close 3-Aug : 1,606.00
Change : 13.70 or 0.9%

Silver Price Close Today : 2806.20
Silver Price Close 3-Aug : 2779
Change : 27.20 or 1.0%

Gold Silver Ratio Today : 57.719
Gold Silver Ratio 3-Aug : 57.791
Change : -0.07 or -0.1%

Silver Gold Ratio : 0.01733
Silver Gold Ratio 3-Aug : 0.01730
Change : 0.00002 or 0.1%

Dow in Gold Dollars : $ 168.57
Dow in Gold Dollars 3-Aug : $ 168.57
Change : $ 0.00 or 0.0%

Dow in Gold Ounces : 8.155
Dow in Gold Ounces 3-Aug : 8.155
Change : 0.00 or 0.0%

Dow in Silver Ounces : 470.67
Dow in Silver Ounces 3-Aug : 471.25
Change : -0.58 or -0.1%

Dow Industrial : 13,207.95
Dow Industrial 3-Aug : 13,096.17
Change : 111.78 or 0.9%

S&P 500 : 1,405.87
S&P 500 3-Aug : 1,390.99
Change : 14.88 or 1.1%

US Dollar Index : 82.559
US Dollar Index 3-Aug : 82.320
Change : 0.239 or 0.3%

Platinum Price Close Today : 1,398.40
Platinum Price Close 3-Aug : 1,412.90
Change : -14.50 or -1.0%

Palladium Price Close Today : 581.50
Palladium Price Close 3-Aug : 577.40
Change : 4.10 or 0.7%

'Twasn't a legendary week for the silver or GOLD PRICE, but I'll take what I can get, especially silver above 2800 cent resistance.

Today the GOLD PRICE scraped out another $2.60 to end at $1,619.70. Knocked on $1,626, but couldn't burst through yet. Y'all keep a close watch, because one day soon gold's liable to surprise with a Great Leap Upward.

That SILVER PRICE lost a measly 3.5 cents today to end still stalled at 2806.2c. It's about to work my nerves to a nub. As with gold, the five day silver chart leaves one with the taste that somebody tried to trash it today, failed, and it broke through 2820 resistance that has stymied it all week. However, it couldn't hold on at 2832c, and faded on the close. Aftermarket didn't believe that close, and is trading 2814c. I bought silver today. When it closes through 2860c, I'll buy more.

The SILVER PRICE and GOLD PRICE remain on the trajectory I've outlined, slugging their way across August building a base for a rally in September. Buy now, and beat the September rush.

Simple-minded as I am -- so simple-minded I can only follow a long term strategy of riding the primary trend in silver and gold -- I was instructed and enlightened late yesterday to read in Andrew Peaple's Wall Street Journal blog that 9 August marked the 5th anniversary of the global financial crisis' beginning, when the ECB injected E95 billion of emergency liquidity.

Now what investment do y'all reckon has returned the most since then? Wasn't US bonds, or dollars or stocks. Nope, tied for No. 1 were gold and corn, both up 144%. Silver came in next, up 122%, followed by Brent crude oil, up 61%. US Treasuries? Not quite so fruitful with only a 38% return. Stocks? Well, S&P500 has returned a rich 7.7% in five years.

I'm not saying a word.

Here's a tee-tiny fact that catches the inquiring eye of a suspicious mind. US dollar index ended up about the same place it was last week, almost as if . . . Somebody were managing it. Anyhow, it coughed up 9.1 basis points (0.12%) to end at 82.559. Up above stands the 50 DMA at 82.66, while below the dollar dances along a rising fan line. Trend is down, but don't expect any big breaks since the Nice Government Men are holding down the dollar like a basketball underwater.

Does the euro no good, though. It dropped again today, down 0.11% to $1.2289 and near falling through the 20 day moving average ($1.2262) gapped down twice this week, sick as a bull eating Jimson weed. This is getting so painful to watch you start wishing somebody would step forward and put the euro out of its misery. Y'all believe me now about the utter vanity of Draghi's promises? It's dead-dog easy to tell when a central banker is lying. Y'all know how? If his lips are moving, he's lying -- same as a presidential candidate.

Y'all remember them Greek plays? Whenever the plot backed itself into a corner, stagehands back stage would tie a rope to an actor and lower him down on the stage. He was the "God out of a machine," Zeus or Mammon or Luigi, who would miraculously set everything aright. Don't know what them Greeks called him, but the Romans called him "deus ex machina." Even in those days, it was a cheap and corny way to solve a plot.

Well, the deus ex machina struck the stock market today when in the last 45 minutes of trading after a whole day underwater stocks suddenly got religion as buyers were lowered down on ropes by the NGM.

Dow rose 42.76 (0.32%) to 13,207.95. S&P500 rose 0.22% (3.07 points) to 1,405.87. Congratulations! The NGM got to the end of the day and their pre-prandial martini without the world flying apart.

Y'all don't keep hoping that deus ex machina will return. That rope's frayed already and liable to break.

On 10 August 1821 Missouri became the 24th state to join the Union. Ironically, Missouri within a few years also prompted the first supreme court test of the constitution's Article I Section 10, "No State shall make any Thing but Gold or Silver Coin a Tender in payment of debt." As I remember, Missouri started a state bank and made its notes a legal tender. Somebody sued, and the supreme court, which in those days required that justices possess a brain bigger than a tunipseed, found that paper was not gold or silver after all. More irony: Missouri is the only state I know of that has exercised its power under Article I Section 10 to declare a tender, and declared that US 90% silver coin is its tender. That was a while ago.

Y'all enjoy your weekend.

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.