Thursday, August 23, 2012

The Gold Price has Risen $55.80 in the Last Four Days Buy Fistfuls if Gold Closes Above $1,680

Gold Price Close Today : 1669.60
Change : 32.20 or 1.97%

Silver Price Close Today : 30.447
Change : 0.898 or 3.04%

Gold Silver Ratio Today : 54.836
Change : -0.577 or -1.04%

Silver Gold Ratio Today : 0.01824
Change : 0.000190 or 1.05%

Platinum Price Close Today : 1553.60
Change : 28.40 or 1.86%

Palladium Price Close Today : 656.00
Change : 27.85 or 4.43%

S&P 500 : 1,402.08
Change : -11.41 or -0.81%

Dow In GOLD$ : $161.67
Change : $ (4.62) or -2.78%

Dow in GOLD oz : 7.821
Change : -0.223 or -2.78%

Dow in SILVER oz : 428.86
Change : -16.94 or -3.80%

Dow Industrial : 13,057.46
Change : -115.30 or -0.88%

US Dollar Index : 81.36
Change : -0.149 or -0.18%

Before I speak a word about the silver and GOLD PRICE, I'm going to warn y'all against enthusiasm. Easiest thing in the world is to get all worked up and cheery about a rising market, disremembering that gravity hasn't stopped working. Faster a market rises, faster it can fall, too. So while after such a long time spent in a correction these rallies make me happier than a six-year old with a new puppy, but don't let a sudden reaction cast you down. The breakouts have been made, but retracements must come to solidify those gains.

Now, I've done my duty and I can brag all I want.

The SILVER PRICE has risen 245.2 cents in four days, 8.8%. Today it closed up 89,8 cents at 3044.7 -- that's right, above 3000c.

In the same four days the GOLD PRICE has risen $55.80 or 3.5%. Yesterday it closed at 1637.40, but in the aftermarket rose $17. I looked it about 11:00 p.m. and it was already above $1,660. High today came at $1,674.72, less than six bucks off that $1,680 target I've been aiming at.

Milestone here is the GOLD PRICE hitting the descending trendline from last August's top, not to mention cutting through the 200 DMA yesterday. I told y'all those trend followers would jump on when gold crossed that line.

The SILVER PRICE closed right at its 200 DMA (3051c). It has not quite touched the downtrend line from the April 2011 top, but is shy of it by only a gnat's whisker.

With both silver and gold it's reasonable to expect some pause and reaction to digest gains this huge. Reasonable, too, for both metals to require two tries to break through that huge downtrend line. More, the Relative Strength Index is wildly overbought. Somethin' got to give.

That something may be no more than a little drop, but more likely it will reach back toward the breakout points for a final kiss good-bye. Might even punish enthusiasts and trend following vultures by dropping lower than that. That gives the bull a chance to shake off all these newcomers.

ON THE OTHER HAND, should the GOLD PRICE close over $1,680 tomorrow, or silver above 3130c, y'all get OUT of the way. Just buy fistfuls and call your mama and borrow money from her and buy some more, because closes that high mean much more upside is coming.

'Tis a measure of the hopelessness of Our Bosses' and Betters' management that the gassy guesses of a central bank committee (the FOMC) can actually move markets.

Another measure of that hopelessness is that markets cannot figure out what it means. Somebody SUSPECTS the Fed will inflate more, and commodities and bonds rise hand in hand, which makes no sense at all. A bond amounts to no more that a purchase of dollars in the future, dollars which will then be worth less, so exactly WHY would a rumor of more inflation raise bond prices? Commodities I understand, because inflation will float their prices. Stocks refused to follow their usual illogic and climb on inflationary hints.

Add to all that the Fed's Zero Interest Rate Policy which in Europe is now becoming a Negative Interest Rate Policy where bond investors actually pay governments to loan them money. Have any of those Braniacs in central banks considered how long periods of low to no interest rates will affect all those pension funds? Not only are the central banks and their brains bankrupt, but they will also bankrupt everybody else.

Days like this I am really glad to be nothing but a natural born fool. That frees me from ever having to think deep thoughts, like them central bankers wear themselves out a-thinkin'.

Y'all are going to LIKE today's news.,

Dollar index kept on dropping on rumors of more Quantitative Easing, i.e., money printing. Surrendered another 14.9 basis points (0.2%) to 81.36. Dollar has plunged over the cliff of support, fell through 81.50 support, and now wants to try to smash through 81. This has a bad feel about it: too much movement all at once. Not the sort of action the Nice Government Men promote.

Euro continued to ascend today, floating on clouds of gas and airy speculation. Resistance above $1.2600, back to this year's first low, stands dead ahead. Euro closed up 0.27% at $1.2563. When it entered this ecstatic fit the Euro gapped up over its closely clustered 50 and 62 day moving averages. Those gaps sooner or later get filled. But if the euro breaks the $1.2600 barrier, the big downtrend line stares down from about $1.2725.

Mercy! Did I forget to tell y'all that Gold in Euros broke out today, too, with a E1331 close? Broke out of a rising triangle, hinting further advances.

Speaking of that, Gold broke out against the Yen too, clearing its 200 day moving average and escaping a congestion area.

Yen itself gained 0.17% to 127.40 cents (Y78.49).

Now let me tote this up. I'm such an ignerent fool I've got to add it on my faingers: gold broke out against the dollar, gold broke out against the yen, gold broke out against the euro -- why, it does look like the only money left standing is -- GOLD. Well, silver, too.,

Stock charts today look like a cross section of the Titanic's hull. Dow stumbled 115.3 (0.88%) to 13,057.46. Broader S&P500 lost 0.81% (11.41) to 1,402.08. Ben the Brainiac better get busy saving Wall Street!

SPECIAL OFFER: Swiss Twenty Francs.

Pay close attention, because y'all won't see this again. The Swiss twenty franc is one of the world's most popular coins gold. Minted to the standard of the Latin Monetary Union, 0.1867 troy ounce fine gold, the Swiss twenties contain exactly as much gold as a French 20 franc, Belgian 20 franc, or Italian 20 Lira. They are so well known that survival kits for US pilots used to contain twenty francs, Swiss or otherwise.

I bought a slew of them today and must turn them over quickly, so I am willing to sell them at a tiny premium of 4.9% over their gold value. Hard to believe, but that's cheaper than one ounce Krugerrands, Maple Leaves, or American Eagles, and these are small coins.

I will sell them in minimum lots of Ten (10) coins at $326.95 each, or $3,269.50 per lot + $25 shipping, a total of $3,294.50. Whether you order one lot or 20, the sole shipping charge is $25.

If you wire payment, we will WAIVE the $25 shipping charge.

No limit on the number of lots you may order, up to the total I have on hand. When my supply sells out, I cannot sell more at this price.

Special Conditions:

First come, first served, and no re-orders at these prices. I will write orders based on the time I receive your e-mail.

We will not take orders for less than the minimums shown above.

All sales on a strict "no-nag" basis. We will ship as soon as your check clears, but we allow Two weeks (14 days) for your check to clear. Calls looking for your order two days after we receive your check will be politely and patiently rebuffed.

If you want faster shipping, please send a wire (wire instructions will appear on your trade confirmation). If you wire payment, we will WAIVE and deduct the $25 shipping fee.

Spot gold basis for all prices above is $1,669.60. ORDERING INSTRUCTIONS:

1. You may order by e-mail only to . No phone orders, please.

Your email must include your complete name, address, and phone number. We cannot ship to you without your address. Sorry, we cannot ship outside the United States or to Tennessee.

Repeat, you must include your complete name, address, and phone number. Our clairvoyant quit without warning last week and we can no longer read your mind.

2. Orders are on a first-come, first-served basis until supply is exhausted.

3. "First come, first-served" means that we will enter the orders in the order that we receive them by e-mail.

4. If your order is filled, we will e-mail you a confirmation. If you do not receive a confirmation, your order was not filled.

5. You will need to send payment by personal check or bank wire (either one is fine) within 48 hours. It just needs to be in the mail, not in our hands, in 48 hours.

6. "No Nag Basis" means that we allow fourteen (14) days for personal checks to clear before we ship. Want your order faster? Send a bank wire, but that's not required. Once we ship, the post office takes four to fourteen days to get the registered mail package to you. All in all, you'll see your order in about one month if you send a check. 

7. Mention in your email.

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.