Monday, October 15, 2012

The Gold Price has Dropped and will Continue to Correct Watch for Your Chance to Buy at Reduced Prices

Gold Price Close Today : 1736.00
Change : (22.00) or -1.25%

Silver Price Close Today : 32.707
Change : (0.926) or -2.75%

Gold Silver Ratio Today : 53.077
Change : 0.807 or 1.54%

Silver Gold Ratio Today : 0.01884
Change : -0.000291 or -1.52%

Platinum Price Close Today : 1631.30
Change : -25.80 or -1.56%

Palladium Price Close Today : 632.90
Change : -5.05 or -0.79%

S&P 500 : 1,440.11
Change : 11.52 or 0.81%

Dow In GOLD$ : $159.86
Change : $ 3.14 or 2.00%

Dow in GOLD oz : 7.733
Change : 0.152 or 2.00%

Dow in SILVER oz : 410.45
Change : 14.15 or 3.57%

Dow Industrial : 13,424.53
Change : 95.68 or 0.72%

US Dollar Index : 79.76
Change : 0.075 or 0.09%

The GOLD PRICE barely gapped down today with a high at $1,751.85 versus Friday's low at $1,752.10. After Friday's $10.80 tumble, gold plunged another $22 today, closing at $1,736. Y'all will mark carefully that is lower than the last intraday low at $1,738.30, so constitutes a breakdown.

The GOLD PRICE has dropped out of that broadening top formation and should continue to sink rapidly toward $1,700 - $1,650 and the this little correction's end.

The SILVER PRICE topped Friday's 41.3 cent loss by dropping another 92.6 cents today and busting through 3300c. Closed at 3270.7c.

That pulled silver through the bottom of support in the broadening top pattern. It will fall to 3200c or even 3050c, probably in a scary waterfall.

Don't worry. Y'all knew this was coming. It's your chance to buy more silver and gold at reduced prices. Keep your eyes peeled, that's coming soon.

From Friday's 52.270 the GOLD/SILVER RATIO jumped to 53.077. Expect a rise to at least 54:1.

Y'all, we had one more great time at the Transformations Gathering this weekend. We had folks from so many different backgrounds and standpoints I was afraid there might be cuttings and shootings galore, but every one of them graciously laid all that aside in favour of a conversation about how we ought to live and build in a world gone crazy.

If we learned nothing else, we know we are not alone. Don't let anybody kid you: there are still loads of honest folks full of integrity and honesty and competence. Go home, kiss your wife or husband, hug your children, and take heart: there are a lot of other people besides you who are determined to build a better life on the bones of a dying economy, and build it themselves.

Currencies today stand at US$1 = Y78.70 = E 0.7724.

US dollar index make a spike bottom Friday at 79.50 and has completed an upside-down head and shoulders with a neckline about 79.95. Close above 80 sends the dollar index scooting higher. Gained today 7.5 basis points over Friday to close at 79.764. Expect dollar to rally as long as it holds 79.50.

Euro lost 0.05% to $1.2946. Has now posted a series of three lower tops. It's like those Tarzan movies when the Englishman leading the safari hears the drums beating in the jungle and all the porters throw away their bundles and run away. "Bad juju, Bwana!"

Yen gapped down today and lost 0.35% to 127.07. No good news expected for yen-owners.

STOCKS diverged cleanly from metals today, gaining while metals fell. Dow rose 95.68 (0.72%) to 13,424.53. Dow has bounced off its 50 day moving average (13,325.35) and is climbing toward the 20 DMA (13,491.56). S&P500 has turned, too, up 11.52 today (0.81%) to 1,440.11.

Y'all mark my words, this will end in mighty sorrows for stock investors.

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.