Gold Price Close Today : 1702.60
Change : 11.80 or 0.70%
Silver Price Close Today : 32.619
Change : 0.347 or 1.08%
Gold Silver Ratio Today : 52.197
Change : -0.196 or -0.37%
Silver Gold Ratio Today : 0.01916
Change : 0.000072 or 0.37%
Platinum Price Close Today : 1585.40
Change : 10.80 or 0.69%
Palladium Price Close Today : 647.00
Change : 0.85 or 0.13%
S&P 500 : 1,432.12
Change : 1,551.00 or -1304.68%
Dow In GOLD$ : $169.12
Change : $ 1.83 or 1.09%
Dow in GOLD oz : 8.181
Change : 0.088 or 1.09%
Dow in SILVER oz : 427.02
Change : 2.99 or 0.70%
Dow Industrial : 13,929.00
Change : 244.52 or 1.79%
US Dollar Index : 81.23
Change : -0.114 or -0.14%
The GOLD PRICE crossed above $1,700 today, rising $11.80 to $1,702.60. I remind y'all, for an object lesson in the potential speed of gold moves, that 14 days ago only gold crossed above $1,600.
Gold standeth now above its 20, 50, 150 (key long term moving average), and 200 DMAs. Gold left the 200 way back there at $1,645.79.
The GOLD PRICE is still targeting $1,740 for this move. Watch for a reaction after that when you can buy, buy, buy. Bottom of that first correction after a market begins moving up is the safest place to buy always. Not always the most profitable, but the safest.
The SILVER PRICE skipped 34.7 cents to end at 3261.9c. High came at 3298c as silver challenged the next milestone, 3300c.
Day by day the GOLD/SILVER RATIO keeps on dropping. as silver outperforms gold. It has dropped from the summer highs (and highs for the move) at 59+ to 52.197 today, and left two gaps down along the way. 200 DMA now stands at 54.34. Doesn't have much more downside in it before a reaction will start that will take it at least to 54. If you have not yet swapped gold for silver, that will be your last change. This move will target something below 30:1.
What would y'all think of a doctor who visited your house (y'all can tell this is a fairy tale already, can't you?) when your child had a temperature of 101º F. and recommended you pack the child in ice to lower that temp down to 89º F. ? That way, he says, "he won't be sick any longer."
Y'all all know that lowering a sick person's temperature way below what's normal does NOT constitute a cure. Yet Central Banking Criminal Dr. Draghi announces that he, like Dr. Ben Bernanke, will cure the sick patient by holding down his temperature. This is what it means to suppress interest rates in a sick economy: it only makes the patient sicker, and might even kill him.
It's worse than that. The European Stability Mechanism, the garbage can into which all the rotten bonds will be cast, will directly buy the bonds from countries in trouble, like Spain, Italy, and Greece. Now I'm just a natural born fool from Tennessee so subtleties are lost on me. Maybe y'all can explain to me exactly how this differs from outright monetizing government debt? This is what the German constitution forbids, remembering the Weimar hyperinflation when the Central Bank directly monetized government debt. This is the issue the German Constitutional court addresses on 12 September, but shucks! Constitutions don't mean nothing nowadays. When politics demand, judges yield, and so does law.
And remember, when Draghi says, "The euro is irreversible," you are hearing the feckless Pop-Pop! of the Blarney Cannon. Nothing in this sublunary world of mutability is irreversible. Nothing. Only rule here is, "Everything changes, all the time."
Once again today we saw the wisdom of the proverb, "Buy the rumor, sell the news." Draghi's Big announcement caused nothing more than a little mouse burp in the market. US dollar index fell 19.1 basis points (0.25%), but fell not through rugged resistance at 81.00. Japanese Nice Government Men took this opportunity to trash the Yen. It fell 0.62%, through its 20 and 50 day moving averages to 126.77c (y78.88). Euro rose only 0.25%, not much of a move and pretty wobbly on the chart. Barely poked its head through $1.2600 resistance to close at $1.2635.
My, O, My! Lots o' joy in Stockville today! After all, lots more inflation will help the economy -- won't it? Yes, sweetheart, just shortly after hell freezes over solid.
Dow gained 244.52 (1.87%) to close at 13,292, just below the August intraday high at 13,330.76 and the May high at 13,338.66. S&P500 actually exceeded its August and may high. It gained 15.51 (2.04%) to 1,432.12.
Don't sell the farm to buy stocks just yet. When measured in gold, today's stocks closes are 7.5% below this years highs. Stocks will NOT outperform gold any time soon.
My thanks to all you readers from Canada, Australia, New Zealand, Saudi Arabia, Thailand, and the US who have ordered my new book, At Home in Dogwood Mudhole. I deeply appreciate your confidence.
Now some of y'all are still sitting on the fence. I'll tell you what. If the chapters "Pig Persuader" and "No Green Acres" don't make you laugh out loud at least once, or gasp in frightened horror when the horses run away with Justin and Zach, stowed away on the back of the wagon, learns to pray, I will refund your purchase price. I have not made up one single incident in Volume I (or II or II, for that matter). It's all true, it all happened right here in Tennessee on the Top of the World Farm.
Here's the deal: you can make a pre-publication order at http://bit.ly/ahidm-vol1 and save the $5 shipping AND get an autographed copy. At Home in Dogwood Mudhole is 400 pages with maps and pictures, and it's more fun that you've had in a long, long time.
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.