Thursday, August 16, 2012

The Gold Price Gained $12.40 Closing at $1,616.10 Time is Running Out to Buy at These Prices

Gold Price Close Today : 1616.10
Change : 12.40 or 0.77%

Silver Price Close Today : 28.205
Change : 0.400 or 1.44%

Gold Silver Ratio Today : 57.298
Change : -0.378 or -0.66%

Silver Gold Ratio Today : 0.01745
Change : 0.000114 or 0.66%

Platinum Price Close Today : 1433.90
Change : 39.00 or 2.80%

Palladium Price Close Today : 582.80
Change : 5.40 or 0.94%

S&P 500 : 1,416.65
Change : 11.12 or 0.79%

Dow In GOLD$ : $169.55
Change : $ (0.13) or -0.08%

Dow in GOLD oz : 8.202
Change : -0.006 or -0.08%

Dow in SILVER oz : 469.95
Change : -3.52 or -0.74%

Dow Industrial : 13,254.99
Change : 90.21 or 0.69%

US Dollar Index : 82.38
Change : -0.293 or -0.35%


Editor Note: We appologise for the error in prices on the 14th of August when Franklin didn't post commentary, the prices posted on the 14th of August were incorrect. This was due to a fault of and not Franklin Sanders.


The GOLD PRICE raked in another $12.40 to close Comex at $1,616.10, while silver scooped up 40 cents to 2820.5c.

Today the GOLD PRICE carved out the rest of a bottom, rising to the level where it broke off on Tuesday, about $1,615. This pattern resembles an upside down head and shoulders, and targets $1,640. But first, gold must pierce $1,625 - $1,630 resistance where it hath so oft been rebuffed. Close up around $1,625 tomorrow would be your first hint gold intends to slap back at the folks who have repeatedly slapped it around. Whether sooner or later, that will come.

The SILVER PRICE, on the other hand, rose a little higher than gold while tracing out the same pattern. Today's high at 2829c was slightly higher than Monday's 2820c. I know I sound like you're old 78 rpm record stuck in the same groove, but silver still needs to better 2850c to break away from gravity. Y'all know that can happen very quickly. Once silver crosses that line all those uppity shorts will panic and silver will blast away.

But first, it must breach the resistance between here and 2806c.

Time is running out to buy silver and gold at these prices. August draweth to a close.

Th'other end of the see-saw dropped today -- the US Dollar index -- while the metals and stocks end rose. All this remains in a range, changing nothing.

Scabrous US Dollar index dropped toward the 82.20 bottom of this week's range, skidding to a low at 83.32. Closed at 82.378, down 29.3 basis points (0.38%). Dollar remains in a rigidly controlled range from 82.90 to 82.20. I think I smell ripe mackerel in the air. Whoops! Sorry, Nice Government Men, but y'all aren't too subtle lately.

This did, however, benefit the dying euro, which yesterday was threatening to vomit all over investors by breaking through the 20 day moving average ($1.2275). Euro rose 0.55% to $1.2356. This is like shocking a fresh corpse with jumper cables: it jumps, but 'tain't alive. Euro didn't quite reach its 50 dma ($1.2386).

Yen followed through downside leaving behind, well, if not a waterfall then at least a cataract. 'Twas enough to take it below the 200 DMA (126.40), closing down 0.51% at 126.00 cents (Y79.37). Rollover earthward is now confirmed.

STOCKS solidly advanced throughout the day. Dow added 0.69% (90.21) to 13,254.99. S&P out did the Dow rising 11.12 (0.79%) to 1,416.65.

Stocks are now drawing nigh this year's highs that posted a double top April 1 and May 1 at 1,422.38 and 1,415.32. Analogous prices for the Dow came at 13,297.11 and 13,338.66. If the Dow travelled all the way to the trend line left by those two tops, it might reach 13,450. Stocks have same chance of breaking through these tops and entering a new bull market that I have of winning $305 million Power Ball lottery. Well, maybe not quite that likely.

On 16 August 1896 gold was discovered in the Klondike, at Bonanza Creek, Alaska.

“Plus ça change, plus c'est la même chose.” The more things change, the more they stay the same. On 16 August 1777 France declared bankruptcy, which monetary troubles contributed to the later Revolution.

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.