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Thursday, October 18, 2012

The Gold Price Lost $8.20 Closing at $1,743.30 Keep Watching for Great Buying Opportunities

Gold Price Close Today : 1743.30
Change : -8.20 or -0.47%

Silver Price Close Today : 32.838
Change : -0.359 or -1.08%

Gold Silver Ratio Today : 53.088
Change : 0.327 or 0.62%

Silver Gold Ratio Today : 0.01884
Change : -0.000117 or -0.62%

Platinum Price Close Today : 1641.20
Change : -26.80 or -1.61%

Palladium Price Close Today : 647.50
Change : -6.20 or -0.95%

S&P 500 : 1,457.34
Change : -3.57 or -0.24%

Dow In GOLD$ : $160.66
Change : $ 0.67 or 0.42%

Dow in GOLD oz : 7.772
Change : 0.033 or 0.42%

Dow in SILVER oz : 412.60
Change : 4.22 or 1.03%

Dow Industrial : 13,548.94
Change : -8.05 or -0.06%

US Dollar Index : 79.38
Change : 0.298 or 0.38%

Metals had a right bad day. The GOLD PRICE lost $8.20 of yesterday's $6.80 gain to leave it at $1,743.30. The SILVER PRICE also dug a deeper hole, losing 35.9 cents to 3283.2c. Platinum gave back $26.80 of the $25.30 it gained yesterday. Palladium coughed up $6.20 of yesterday's $14.45 gain.

You all can rant and throw rocks at me if you want, but all I see on that five day chart is gold and silver rolling over in rounding tops. If gold breaks $1,730 and silver and silver 3240c, the waterfall commences.

Of course, that is by no means a sure thing, but so saith the market today.

Be careful, keep watching, a great buying opportunity is near.

Since I'm nothing more than a natural born fool from Tennessee and not in the news business, I can do what they never can: admit that nothing much happened today. I don't even have to make a big deal out of same little mouse burp event or go searching around the globe for grisly dismemberments, murders, etc. I can just say, "Not much happened."

Let's look at the not much.

Currencies: $1.00 = Y79.26 = E0.7652.

Yen and euro continue to diverge. Both fell today by 0.4% (wonder why?) to 126.16 cents/Y100 and $1.3068/euro. Yen gapped down again and closed nearly plumb on its 200 DMA (126.11) while the euro again demonstrated that the September $1.3172 high makes the euro feel like Kryptonite makes Superman feel. Maybe it will continue higher, but my, O, my it looks green sick and trashy to me.

US dollar index surprised everybody, me included, by bouncing off 70 by 29.8 basis points and rising 0.38%. I'm tired of it lying to me. It might have made a bottom yesterday just below 79, as a kind of rounding bottom appears on the 5 day chart. HOWEVER, it must o'erleap 79.40 to prove it has turned around.

None of these currency antics did the metals or stocks any good. Dow stayed about as near flat as the top of my head all day, tried to push through 13,580 and got the snot slapped out of it instead and ended the day lower by 8.06 at 13,548.94. S&P500 lost 3.57 (0.24%) to 1,457.34.

I wish I was smart like them Wall Street fellers. (You got to be smart to mash your feet into them pointy-toed shoes.) I look at the stock chart and only see a broadening top, the harbinger of grief, pain, sorrow, and whopping loss. They see stocks going lots higher permanently. Clearly I AM a fool.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
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© 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.