Monday, August 27, 2012

The Gold Price Gained $2.60 Closing at $1,672.40 on the Comex but Fell Off Sharply in the Aftermarket

Gold Price Close Today : 1672.40
Change : 2.60 or 0.16%

Silver Price Close Today : 31.048
Change : 0.427 or 1.39%

Gold Silver Ratio Today : 53.865
Change : -0.666 or -1.22%

Silver Gold Ratio Today : 0.01856
Change : 0.000227 or 1.24%

Platinum Price Close Today : 1551.90
Change : -1.20 or -0.08%

Palladium Price Close Today : 649.30
Change : 2.60 or 0.40%

S&P 500 : 1,410.44
Change : -0.69 or -0.05%

Dow In GOLD$ : $162.23
Change : $ (0.65) or -0.40%

Dow in GOLD oz : 7.848
Change : -0.031 or -0.40%

Dow in SILVER oz : 422.72
Change : -6.98 or -1.62%

Dow Industrial : 13,124.67
Change : -33.30 or -0.25%

US Dollar Index : 81.68
Change : 0.113 or 0.14%

The GOLD PRICE and SILVER PRICE both got their feet tangled in the downtrend line from last year's high. Gold gained $2.60 to $1,672.40 while silver added 44.2 cents to end Comex at 3104.8c. That was fine, but both dropped off in the aftermarket, a little too sharply.

The GOLD PRICE has now rounded over, in what may prove a consolidation or a short term top. Right now it's flirting with $1,660, but really must hold $1,645 to avoid a correction back to $1,625.

The SILVER PRICE scratched out a double top at 3120c today, and now is scratching to cling to 3060c. Support stands around 3060c, then 3000c and 2900c.

After those respectable closes, GOLD fell nearly $10 in the aftermarket, silver about 65 cents, platinum $8 and palladium $5. That sharp fall on no particular news I could find leads me to expect a rocky week, paying dues for last week's spiky gains.

It'll be all right. SILVER and GOLD PRICE have made their decisive breakouts. May be a little negotiating to be done here leaving the gate, but that'll be soon passed.

Market is offering you an rare opportunity to LOAD UP before it takes off. Remember that I have been warning that this correction can be steep and fast, but don't let that worry you. On the other hand, any closes above today's (3104.8c and $1,672.40) means the rally has started, so don't wait to buy.

Y'all have got to watch out! You know how to tell a politician is lying, right? His lips are moving. Some of y'all wrote me asking about a news story that the Republican Party is considering including a new gold standard in its platform. Now think about that.

Republicans will return the country to a gold standard when hell freezes solid. They've been owned by the banks and corporations since 1860, and Lincoln before that. He was a railroad lawyer.

We will get a gold standard when it is FORCED on them, Republicans and Democrats alike, and not before. It is a a reform so radical that it will GUT their power and the banks', and they just can't stand that.

Frederic Bastiat (d. 1850) said it best: "When plunder has become a way of life for a group of people living together in a society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it." Not only do they steal from us, they preen themselves as morally superior because they steal from us.

You want to give power to the people? Then put gold and silver money into their hands! That's more powerful than a Remington 870 twelve gauge pump.

Sorry dollar gained a little against the sorry euro and sorry yen. Markets are nervous about what Ben the Bandit might bloviate to the Jackson Hole Gathering for Our Bosses. Super-Mario Draghi will speak there, too. My, my, they're a-gonna be wallerin' hip deep in Deep Thoughts -- or something.

Dollar gained 11.3 basis points (0.14%) from where it was trading when I wrote Friday. Five day chart has an iffy look. Probably planning to drop a little further, certainly will if it can't better 81.70 tomorrow, but to turn around and rally again it needs to climb over 81.85. Drop below last low at 81.20 will be like tying an anvil to a man's ankles and dropping him off a bridge with his hands tied.

Euro today stubbed its toe on bad economic news in Germany. Ended at $1.2498, lighter than Friday by 0.11%. So far that $1.2600 resistance has stopped like Jackson stopping yankees in the Valley.

Despite last week's jump yen did not get through 127.75c resistance, the main downtrend line. Closed at 127.0 c (y78.73) today, down 0.9% and just below its 20 DMA (127.12). For what the opinion of a natural born fool is worth, looks to me like the Nice Government Men are working at managing these currencies as hard as a hairy dog works at managing fleas.

STOCKS fluttered today like an naked chicken but never could get off the ground. Dow fell 33.3 (0.25%) to 13,124.67. S&P500 didn't do quite as badly, fell 0.69 (0.5%) to 1,410.44.

Stocks remain within their bearish rising wedge, so could yet jump higher. Any close below 13,000 is fatal and will loose a flood of blood.

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.