Tuesday, October 23, 2012

The Gold Price Lost $16.80 Today Watch for Buying Opportunities Coming Soon

Gold Price Close Today : 1708.30
Change : (16.80) or -0.97%

Silver Price Close Today : 31.768
Change : (0.459) or -1.42%

Gold Silver Ratio Today : 53.774
Change : 0.245 or 0.46%

Silver Gold Ratio Today : 0.01860
Change : -0.000085 or -0.45%

Platinum Price Close Today : 1573.10
Change : -36.60 or -2.27%

Palladium Price Close Today : 594.15
Change : -28.80 or -4.62%

S&P 500 : 1,413.11
Change : -20.71 or -1.44%

Dow In GOLD$ : $158.55
Change : $ (1.36) or -0.85%

Dow in GOLD oz : 7.670
Change : -0.066 or -0.85%

Dow in SILVER oz : 412.44
Change : -1.68 or -0.40%

Dow Industrial : 13,102.53
Change : -243.36 or -1.82%

US Dollar Index : 79.96
Change : 0.520 or 0.65%

The waterfall is pouring over the cliff for the silver and GOLD PRICE. Gold today lost $16.80 to end at $1,708.30 and silver gave up 45.9 cents to 3176.8c.

That close leaves the GOLD PRICE below its 50 DMA ($1,724) and therefore (as the 50 DMA is often the target of gold corrections) rings the bell to remind us an opportunity to buy is coming soon. Might be here already. I'd rather give it a day or two to see where it will settle. $1,690-ish could catch gold, or $1,650 - $1,660. I remind y'all and myself not to allow the better to become the enemy of the good. Somewhere here the market is handing you a sweet chance to buy cheap gold and silver. Don't get greedy. Bulls get rich, and bears get rich, but pigs get slaughtered.

The SILVER PRICE sank below its 300 DMA (3200c) today as we have so long awaited. Just below us at 3097c lies the 200 DMA, with lateral support at 3050c. I think it will stop between here and there. Today I was reading some fellow who believes it might revisit that 2650c line, but I have to doubt that. Of course, I'm only a natural born fool from Tennessee, and nobody is paying me the big bucks to prognosticate for 'em, but I have to doubt silver will fall that low.

This was the day the stock market broke. Dow smashed support at 13,250 and fell another 150 points. Has lost about 500 points in three days. Closed today down 243.36 (1.86%) while the S&P500 puked back 20.71 (1.44%) to 1,413,11.

What might break stocks' fall? The 200 day moving average at 12,966? The lateral support that lurketh there as well? The FOMC committee's announcement tomorrow? If the Dow breaks that 200 DMA, don't count on seeing higher prices for, Oh, six or eight years.

Currencies: US$1.00 = Y79.83 = E0.7703.

Euro gapped down today and lost 0.62% to end at $1.2982. Didn't close below its 20 DMA, first tripwire proving a reversal, but sure punched a big hole in it. A close below $1.2900 puts gravity in the driver's seat.

Yen probably completed its plunge today, having left behind a runaway gap above and yesterday an exhaustion gap. Rose 0.16% today to 125.27 cents per hundred yen. Ought to trade sidewise and higher for a few days at the least.

US dollar index was pounding and hammering on that 80.00 door today. High was 80.062, but the buck couldn't quite close at that lofty spot, so ended at 79.957, up 0.52%. I keep asking myself, "What does the dollar market know that I don't know? What is it foreseeing?" Only answer I get is, "A more costly dollar," for the nonce at least.

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.