Monday, August 20, 2012

The Gold Price Advanced Today as the Silver Price Broke Through it's Upper Boundary

Gold Price Close Today : 1620.10
Change : 3.80 or 0.24%

Silver Price Close Today : 28.586
Change : 0.591 or 2.11%

Gold Silver Ratio Today : 56.675
Change : -1.061 or -1.84%

Silver Gold Ratio Today : 0.01764
Change : 0.000324 or 1.87%

Platinum Price Close Today : 1496.90
Change : 25.10 or 1.71%

Palladium Price Close Today : 607.10
Change : 2.60 or 0.43%

S&P 500 : 1,418.13
Change : 0.00 or 0.00%

Dow In GOLD$ : $169.34
Change : $ (0.43) or -0.25%

Dow in GOLD oz : 8.192
Change : -0.021 or -0.25%

Dow in SILVER oz : 464.27
Change : -9.93 or -2.09%

Dow Industrial : 13,271.64
Change : -3.56 or -0.03%

US Dollar Index : 82.46
Change : -0.152 or -0.18%

The GOLD PRICE advance $3.80 to $1,620.10. That smashed the $1,616 chains holding it last week, but only takes gold into heavy slogging through $1,625 to $1,630 resistance. A close above $1,630 will take gold above this present formation and free it for $1,680.

The SILVER PRICE did it today, it broke through 2860c and through the upper boundary of its flat-topped rising triangle. Closed up 59.1c (2.1%) at 2858.6c.

Rough measuring device is the triangle's height, $2.35. A rise from the breakout at 2820c would carry silver to 3055, right about the 200 DMA, a good pausing place for the first leg of the rally. Remember that the downtrend line from the April 2011 high now stands about 3200c. Silver must break that barrier before it confirms a new rally has begun.

The SILVER PRICE closed at a photogenic 2858.6c, but in the aftermarket was trading 2875.5c, nearly 20c higher. Best way to confirm this breakout would be a close tomorrow above 2900c. Should come this week. Any close under 2820c would be bad juju, gainsaying the breakout.

At this point anyone short silver ought to lift up his scalp and check his brain to see if it's still there and working. The silver and GOLD PRICE are showing all the early signs of a solid breakout and advance, and this leg will carry beyond $2,000 and 5000c.

Best strategy is to BUY breakouts. One more day above this level confirms silver's breakout.

No news today but rumors and political hogwash. I can eat day old grits and drink blinky milk and I'll even eat greenish baloney if I'm really hungry, but I simply can't stomach that political hogwash. They put the hyp in hypocrite.

Currencies didn't move much today. Dollar gave back 15.2 basis points (0.18%) from Friday's close, so it remains in the same tightly controlled range. Euro gained 0.12% to $1.2347, for no good reason. It gas formed a little even-sided triangle, but remains below the 50 day moving average and the critical 62 DMA. Yen perked up 0.21% to 125.94c (Y79.40) but not enough to gainsay its rollover into a downtrend.

STOCKS were as confused as a politician discussing ethics -- some up, some down. Dow inched down 3.56 (0.03%), a microscopic move that left it at 13,271.64. S&P500 moved 0.3 points, to 1,418.13. Stocks are stalled, but will probably see slightly higher prices before the carnage and bloodletting begin.

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.