Wednesday, September 05, 2012

The Gold Price Traded in a Tight $8 Range Before it Lost $2.10 to Close at $1,690.80

Gold Price Close Today : 1690.80
Change : -2.10 or -0.12%

Silver Price Close Today : 23.272
Change : -0.076 or -0.33%

Gold Silver Ratio Today : 52.654
Change : 0.147 or 0.20%

Silver Gold Ratio Today : 0.01376
Change : -0.000028 or -0.20%

Platinum Price Close Today : 1574.60
Change : 8.60 or 0.55%

Palladium Price Close Today : 646.15
Change : 5.90 or 0.92%

S&P 500 : 1,403.44
Change : -1.50 or -0.11%

Dow In GOLD$ : $159.52
Change : $ 0.36 or 0.22%

Dow in GOLD oz : 7.717
Change : 0.017 or 0.22%

Dow in SILVER oz : 560.65
Change : 2.32 or 0.42%

Dow Industrial : 13,047.48
Change : 11.54 or 0.09%

US Dollar Index : 81.23
Change : -0.114 or -0.14%

The range on the silver and GOLD PRICE tightened up today. Silver fumbled 7.6 cents to 3227.2c while the GOLD PRICE lost $2.10 to $1,690.80.

Today gold traded in a tight $8 range between $1,687.39 and $1,695.10 -- flatlining. Needs a close through $1,700, but won't go anywhere until after tomorrow's tiresome pronouncement.

The SILVER PRICE merely backed off to a 3194c low, validating 3190c as solid support. High at 3234c moved toward yesterday's 3236c, but without conviction. Quiet, waiting for domani.

I'm leaving Friday for a week's vacation, so I'd like to leave y'all with a few ideas about what the next week might look like. First, though, I want y'all to remember that what I do every day is merely entertainment to keep y'all steady in silver and gold. The only sensible investment strategy, the one that always profits more than any other, is to ride the primary trend of a bull market. In other words, buy and hold, get right and sit tight, that's the money maker, not trading in and out.

If, as we can expect, Draghi makes some remark that markets desperate to deceive themselves can color as favorable, i.e., inflationary, silver and gold will shoot on up toward the targets indicated by their flags, $1,740 and 3445 cents. Should he disappoint markets, something central bankers are loathe to do, it will clip gold and silver's wings a day or two, but they'll still advance.

Once they hit those targets, expect a correction that will dip toward the points where they broke out over their year-long downtrend lines, say, $1,650 or $1,640, maybe $1,680 and 3050c to 3000c. After a sharp but not lengthy drop they should rapidly recover and rise into the end of the year. After that correction the barrier will become $1,880 for the GOLD PRICE.

Steady, steady -- hold your gold and silver and get ready to buy more on a correction.

To give y'all an idea how silly, yea, brainless the world hath become, markets are all holding their breath to see what Super Mario Draghi and his Eurocrats will say tomorrow about the plan to buy up bonds of the ailing EZ members. How preposterous is this? Why it's 106 CBs (Central Bankers, a measure of Gross Preposterousness).

Let me give you a comparison measure. The usual State of the Onion -- whoops, make that State of the Union -- presidential message hits 65 to 85 CBs. Politicians' speeches about their "faith" usually reach 85 - 103.7 CBs. A drunken husband's explanation of why it was his friend's fault ranks only about 8 CBs. Thus, Draghi is hitting the ball out of the GP park before he even steps up to bat, because he has less chance of fixing the European debt mess as a fruit fly has of finding a banana in Antarctica.

The plan to fix the European sovereign debt mess is the famous Garbage Can Ploy. Y'all remember the Resolution Trust Corporation that "solved" the Savings and Loan Crisis after 1989? Basically, the Garbage Can Ploy creates a big garbage can entity which then BUYS (can y'all believe this?) the rotten paper assets, eventually shifting the load off onto the taxpayers after giving the garbage long enough to compost and lose its stench. Draghi is actually trying to make this broken-down old dog hunt!

US dollar index fell 11.4 basis points (0.15%) to 81.226, moving sideways. Euro closed above $1.2600 at -- $1.2601, up 0.29% but not broken out yet. Speculators clearly expect great things from Super Mario tomorrio. Yen rose a microscopic 0.3% to 127.58c (y78.38). All of this mirrors markets waiting for the event.

All the stock indices except the Dow fell today. After a rocky day falling down a hill, Dow scrabbled up 11.54 points to 13,047.48. S&P500 fell down the hill a bit, down 1.5 to 1,403.44. Something good better happen or the hill becomes a cliff.

It will make you laugh, it will make you cry, it may make you mad, and it will you gasp and wonder how people could make so many stupid mistakes without either getting killed or arrested. That's AT HOME IN DOGWOOD MUDHOLE (Vol. I), my new book that recounts my family's move to the country and farming education. Par for the course in my execution of technical excellence, the link to the page I gave y'all in yesterday's commentary was broken. Try That's so short even I can't mess it up, and it will get you an autographed copy and a $5 shipping savings if you order before publication on October 15 (approximately). Dr. Clyde Wilson says, it is "an agrarian epic -- no, THE agrarian epic."

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.