Tuesday, October 30, 2012

The Gold Price Must Close Above $1,725 to Confirm a Change Upward New York Markets Still Closed

Gold Price Close Today : 1710.50
Change : 2.80 or 0.16%

Silver Price Close Today : 31.788
Change : 0.062 or 0.20%

Gold Silver Ratio Today : 53.810
Change : -0.017 or -0.03%

Silver Gold Ratio Today : 0.01858
Change : 0.000006 or 0.03%

Platinum Price Close Today : 1552.60
Change : 19.70 or 1.29%

Palladium Price Close Today : 595.35
Change : 6.40 or 1.09%

S&P 500 : 1,411.94
Change : -1.03 or -0.07%

Dow In GOLD$ : $158.40
Change : $ (0.20) or -0.13%

Dow in GOLD oz : 7.663
Change : -0.010 or -0.13%

Dow in SILVER oz : 412.33
Change : -0.69 or -0.17%

Dow Industrial : 13,107.21
Change : 3.53 or 0.03%

US Dollar Index : 79.94
Change : -0.292 or -0.36%

Also, in case some of y'all record prices, they changed yesterday's settlements to GOLD PRICE down $3.20 at $1,707.70; silver down 28.4c at 3172.6c; platinum down 12.40 at $1,532.90, and palladium down $7.45 to $588.95. Remember, those are YESTERDAY'S closes.

Yet again today Hurricane Sandy closed down New York markets, first time that's happened since the 1888 blizzard. Yet the CME Globex computerized market is running, but trading has been light. Stock markets remained closed.

So what little drop of information can we squeeze out of today's trading? The SILVER PRICE rose 6.2 cents to 3178.8c while the GOLD PRICE rose $2.80 to $1,710.50. Platinum had a good day, rising $19.70 to $1,552.60. Palladium was pretty peppy, too, up $6.40 to $595.35.

This offers the appearance that it's the shorts who got flooded out. After all, when SOMEbody was taken out of the game, prices rose. Now I wouldn't swing over hell using THAT for a rope, but it's a plausible guess.

Range on the SILVER PRICE today was 3165 to 3212.4c, and that range has widened out (gone higher) since the afternoon Globex market opened. The GOLD PRICE is down $1.50, after a squeenchy daily range of $1,715 - $1,708.25. US dollar index today lost its grip above 80 and fell 29.2 basis points (0.38) to 79.939. No certain signal there yet.

Here's another little hint of strength in the market: the premiums on US 90% silver coin and Krugerrands have risen. Usually that presages higher prices.

Here are the bounds silver and gold face. Gold must close above $1,725, really $1,730 to confirm a change to upward. Silver needs to close above 3250c.

Underneath gold will signal lower prices by closing below $1,790. Silver below 3100c will beg for lower prices.

In truth, though, these partly open markets don't tell us much at all. Let's wait until they open fully and see what happens. By the way, gold above $1,725 would persuade me to buy.

Many of you sent condolences on the death of my daughter-in-law, and I deeply appreciate your generous sympathy and your prayers. Thank you. We have to fly to Colorado Thursday for the Saturday funeral, so I will not publish commentaries on those days. God willing, I will return on Monday, 5 November.

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.