Tuesday, October 16, 2012

The Silver and Gold Price Remain in a Correction Despite this Gold Rose $8.70 Today to Close at $1,744.70

Gold Price Close Today : 1744.70
Change : 8.70 or 0.50%

Silver Price Close Today : 32.922
Change : 0.215 or 0.66%

Gold Silver Ratio Today : 52.995
Change : -0.082 or -0.16%

Silver Gold Ratio Today : 0.01887
Change : 0.000029 or 0.16%

Platinum Price Close Today : 1657.10
Change : 11.40 or 0.69%

Palladium Price Close Today : 637.95
Change : 6.35 or 1.01%

S&P 500 : 1,454.92
Change : 14.79 or 1.03%

Dow In GOLD$ : $160.62
Change : $ 0.73 or 0.46%

Dow in GOLD oz : 7.770
Change : 0.035 or 0.46%

Dow in SILVER oz : 411.77
Change : 1.19 or 0.29%

Dow Industrial : 13,556.37
Change : 127.55 or 0.95%

US Dollar Index : 79.32
Change : -0.445 or -0.56%

Today the GOLD PRICE rose $8.70 to $1,744.70. Silver rose also, 21.5 cents to 3292.2c, but without successfully penetrating 3300c.

'Twould be a mistake to view metals' bounce today as the bottom of this drop -- not enough time yet, not enough price. Minimum target is the 50 DMA at $1,712.64 for gold.

The GOLD PRICE made a new intraday low for the move yesterday at $1,729.70. Today's low hit only $1,736.46, while the high reached $1,748.20. About $1,755 it will meet resistance as determined as the Confederate line at Fredericksburg in 1862. For now, the momentum remains gravityward.

The SILVER PRICE pierced 3300c today and reached 3304c but fell back. This is neither zeal, nor enthusiasm, nor strength. More downside's a-coming.

If markets won't give you a philosophical and patient turn of mind, won't anything. We simply have to wait with longsuffering while this little correction plays itself out, biding our time until we buy again. Don't let the waiting rile you.

Don't y'all get tired of hogwash? I believe if I see one more news report that "the Euro crisis is solved because some German politician belched favorably toward a Spanish bailout" I am just going to turn in my keyboard and call it a career. I'm about to where I don't believe anybody in the world can count, or add, or subtract. America, Europe, Japan, China -- they're all flat busted. The borrowing-money-into- existence system, the borrowing-to-consume, the government-can- run-an-economy system is dead as a hammer, and ain't coming back.

That rotten US dollar is just like a trashy girl. She keeps on lying to you, and you just can't believe anybody could lie that much and that consistently. Now she's done it again.

Dollar dropped below that 79.50 I said yesterday it needed to hold. Well, I reckon I'm just like that sucker boyfriend that still wants to believe her. Last bottom was 79.10, so the dip today to 79.30 might not prove fatal to a rally. Worse, today's close at 79.319 (down 44.5 basis point or 0.57%) leaves the dollar looking up at its 20 DMA (now 79.61).

Currencies today stand at US$1 = Y78.88 = E 0.7660.

Think of the world as a rather large concentration camp where all the inmates are swapping rumors all the day long about the war finally being over, or an amnesty coming. That's what happening with the euro, Currency of Bums. Today it gapped up to $1.3055 (+0.84%) on rumors so flimsy a six year old wouldn't bite on 'em. All is illusion, wet cardboard waiting for some doubter to stick a finger thru it. In spite of today, the euro remains in a downtrend unless it can climb over 1.3100.

Yen keeps going out of this world backwards. Tumbled another 0.23% today to 126.78c.

If y'all go look at the Dow/Gold chart, it will become plain that stocks are rallying against gold, having gapped up through their 20 DMA two days ago. Target of this COUNTER-trend rally is at least the 200 DMA (7.80 oz), maybe higher before it plays out. Make this plain: stocks have more to rise, gold and silver further to fall.

Wall Street was enough to warm a banker's frozen heart today. Dow rose 127.55 (0.95%) to 13,556.37. S&P500 outran it, up 14.79 (1.03%) to 1,454.92.

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.