Tuesday, September 04, 2012

The Silver and Gold Price Corrections Have Ended — The Next Rally Has Begun — Buy More

Gold Price Close Today : 1692.90
Change from August 31st : 8.30 or 0.49%

Silver Price Close Today : 32.348
Change from August 31st : 0.978 or 3.12%

Gold Silver Ratio Today : 52.334
Change from August 31st : -1.367 or -2.55%

Silver Gold Ratio Today : 0.01911
Change from August 31st : 0.000486 or 2.61%

Platinum Price Close Today : 1566.50
Change from August 31st : 30.20 or 1.97%

Palladium Price Close Today : 640.25
Change from August 31st : 12.30 or 1.96%

S&P 500 : 404.94
Change from August 31st : -1.64 or -0.40%

Dow In GOLD$ : $159.18
Change from August 31st : $ (1.44) or -0.90%

Dow in GOLD oz : 7.700
Change from August 31st : -0.070 or -0.90%

Dow in SILVER oz : 402.99
Change : -14.31 or -3.43%

Dow Industrial : 13,035.94
Change from August 31st : -54.90 or -0.42%

US Dollar Index : 81.34
Change from August 31st : 0.125 or 0.15%

The GOLD PRICE will probably slice through $1,700 tomorrow, certainly this week. This run won't stop before $1,740 or $1,750.

Nothing rises forever. The silver and GOLD PRICE have a ways to run yet, but a little correction will come -- it always does.

GOLD PRICE jumped $8.30 to $1,692.90. Considering that the aftermarket is trading at $1,697.20, that close looks a bit posed. Low came early (9:30) at $1,688.50, then rocketed off that clean to the high, $1,698.35.

The SILVER PRICE gained 97.8 cents to 3234.8c. Friday it gained 100.3c. This is fun, but not normal. At 3234.8, silver needs to stretch a bare 18.2 cents to reach its 300 day moving average.

So what? Why, that 300 DMA acts like the 200 DMA does for other markets. Once silver climbs over that 300 DMA, there's no question the next leg up has begun. Put on your helmet, buckle on your seat belt!

The GOLD/SILVER RATIO dropped 1.368 to 52.333 today. That's enormous.

Silver ought to climb another week or more, and touch 3445 cents before it stops.

What big lesson ought we draw from all this? The silver and gold corrections have ended, the next rally has begun, buy more.

By the rumor, sell the news. The stock market gained on news that Ben the Bully Bandit would water down the dollar even more, and fell again today. The blasts of blarney no longer scare many birds off the trees. Thus Ben must pull out the Inflation Gun, his only other weapon. Whoops -- that's already failed with QE 1 and QE 2. "I know what you're thinking, Ben. You're thinking, `Did I fire six shots or only five?' Tell you the truth, Ben, I forgot myself in all this excitement."

Dow fell 54.9 (0.42%) to 13,035.94. S&P500 lost 0.12% (1.64) to 1,404.94. Stocks are verging on falling off the cliff.

US dollar index gained 12.5 basis points (0.16%) to 81.34, a meaningless day's activity. 81.40 is the top of the range, 81.00 the bottom. Dollar index has its eye set on 80.60, the 200 day moving average, maybe even lower.

Euro tapped on $1.2600 resistance Friday, and fell back today 0.14% to $1.2562. Euro will rise to $1.3000 if it can clear $1.2700.

Yen is dancing with its downtrend line. Down today a bare 0.5% to 127.54c (Y78.41).

My book developer tells me that publishers never announce the specific date a book will be published, only the month. So "forthcoming in October" (the 15th, I think) my book AT HOME IN DOGWOOD MUDHOLE (Volume I) will be published. Y'all can save yourselves five bucks shipping and get an autographed copy if you order before 15 October 2012. See http://store.the-moneychanger.com/products/at-home-in-dogwood-mudhole-vol1 That's me behind the horses on the mower, and that picture was taken about 200 yards from where I'm sitting right now. Joel Salatin says it is "at once hilarious, humbling, and holy."

The Bodacious Hoedown last Saturday was a great success, biggest we ever had: 225 people. They had fun, they ate a dangerous amount of food, and they danced barefoot in the grass.

From 7 September through 16 September I will be away for our family vacation. Sorry, I won't publish a daily commentary during that time, but I will return on 17 September, God willing.

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.