Tuesday, August 07, 2012

Once the Gold Price Clears $1,630 Nothing Stands Between it and $1,680 Buy Gold and Silver Now

Gold Price Close Today : 1609.70
Change : -3.20 or -0.20%

Silver Price Close Today : 2808.60
Change : 0.220 or 0.79%

Gold Silver Ratio Today : 57.313
Change : -0.567 or -0.98%

Silver Gold Ratio Today : 0.01745
Change : 0.000171 or 0.99%

Platinum Price Close Today : 1408.90
Change : 8.00 or 0.57%

Palladium Price Close Today : 589.50
Change : 8.65 or 1.49%

S&P 500 : 1,401.35
Change : 7.12 or 0.51%

Dow In GOLD$ : $169.11
Change : $ 1.01 or 0.60%

Dow in GOLD oz : 8.181
Change : 0.049 or 0.60%

Dow in SILVER oz : 468.87
Change : -1.87 or -0.40%

Dow Industrial : 13,168.60
Change : 51.09 or 0.39%

US Dollar Index : 82.22
Change : -0.095 or -0.12%

Metals blew hot and cold out of both sides of their mouth today. The GOLD PRICE lost $3.20 to close at $1,609.70, SILVER PRICE gained 22 cents to 2808.6c, conquering the 2800c resistance. Who's gainsaying whom?

I think silver is leading here. That 2800c resistance was fairly tough. Silver is trending with stocks, as it usually does. For the nonce, that alone ought to float it higher. But look at those white metals today. Platinum rose $8 and palladium rose $8.65. I count that as 3 out of 4 metals rising. Gold is out-voted.

The SILVER PRICE is setting up to charge the hill at 2850c. If it breaks through it can add 100 cents very quickly.

The GOLD PRICE, too, could surprise everyone. It is tapping on that $1,625 - $1,630 barrier. Once it clears that, no great obstacles stand between gold and $1,680, although $1,700 will bring out stronger opposition.

August is seldom a month for new gold lows, and often a month for silver and gold to build a launching platform for a September rise. Look for it.

Once again, now is the time to buy silver and gold.

When news is lacking, all sorts of wretchedly stupid things get printed. Today it is Ben Bernanke bloviating about how students must be "wise" with student loans.

That's rich. Anybody buying a college education today is simply wasting his money. I'd much rather take off four years and travel around the world drinking beer, and I'd get a better education. When two of my sons were finishing college 8-10 years ago they would come home blown-out mad every day. Why? Because of their professors, like the woman trying to force a lesbian interpretation on Shakespeare, or their Marxist history teachers. One son found out how to become invisible: he only needed to raise his hand. Once the professor found out he knew something about history, he wouldn't call on him. My youngest son, I am proud to report, graduated from Nashville Auto Diesel College, and when he got out he had something no college graduate has today: a guaranteed job.

A few days ago on National Proletarian Radio the Wise Ones were talking about student loans, and interviewed some poor women so badly under the education ether that she spent $46,000 (not a misprint) to send her daughter to U. of Vermont for one year. And she has $96,000 in student loan debt herself, and she's a single mom. And the Wise Ones quoted a new study that finds 98% of parents and students still believe that student loans are a good investment.

The entire country is one big looney bin.

Friend wrote me today that with most of the foreign buyers out of the market and the Fed soaking up the unsold bonds, it seems to him that Ben is trying to fix the old pickup truck by jacking it up on round river rocks. Y'all think about that.

Stocks jumped again today, same way a dog does, chasing his tail, when he actually manages to bite it. Dow affirmed its intentions by climbing 51.09 (0.39%) to 13,168.60. S&P500 led the way rising 7.12 (0.51%) to close at 1,401.35.

This confirms the upside breakout and gives us a target of the last tops at $1,415.32 and 13,338.66.

Have fun! I wouldn't dance at this party if y'all bought me a new tuxedo and a full flask.

The US dollar index, within the long term trading channel, reaching back to November 2010 has bounced off the upper boundary. Yet it has caught and clung to the rising fan line from the October 2011 low. If it breaches that fan line, it will fall to 81, or even to the 200 day moving average at 80.13. Last three days trading has been flat.

Yen today made a tiny gap down that left it closing on its 20 DMA (127.26) at 127.25, down 0.47%. I reckon the Nice Japanese Government Men don't fancy their currency appreciating.

I'm wondering if this euro thing has driven just as far as all that SuperMario Draghi hot gas will take it. Rose today minutely, 0.3% to 124.01. Looks stalled at the 50 DMA, and just above is a right intimidating downtrend line. Looks like a snapshot of Tom Thumb standing up tall next to Godzilla.

Every year on the Saturday before Labor Day weekend (in 2012, Sept. 1) my family throws a party we call the Bodacious Hoedown. We'll have field games in the afternoon, including my personal favorite, Dunk the Moneychanger in the dunking booth. That evening we'll have barbecue pork shoulder and ribs and barbecue chicken, and all the truck that goes with it: squash pie, cole slaw, Texas (NOT baked) beans, and watermelon. After supper we have an old time band, the Georgia Crackers, and that amazing dance caller we had last year, T-Claw, the man with the jaw beard. The dances are simple enough that anybody can learn them, and there will be three year olds dancing with 80 year olds. I don't know how we can afford to do this, but my son tells me admittance is free. Still, I'd email him a reservation at [email protected], just to make sure there will be enough barbecue for you and those with you. We're about two hours south of Nashville. Ask Justin for directions.

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.