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Thursday, November 29, 2012

The Gold Price Gained $10.70 a Very Big and Long Rally is Just Starting Buy Now

Gold Price Close Today : 1727.20
Change : 10.70 or 0.62%

Silver Price Close Today : 34.348
Change : 0.664 or 1.97%

Gold Silver Ratio Today : 50.285
Change : -0.674 or -1.32%

Silver Gold Ratio Today : 0.01989
Change : 0.000263 or 1.34%

Platinum Price Close Today : 1618.00
Change : 7.90 or 0.49%

Palladium Price Close Today : 685.20
Change : 12.05 or 1.79%

S&P 500 : 1,415.95
Change : 6.02 or 0.43%

Dow In GOLD$ : $155.85
Change : $ (0.51) or -0.33%

Dow in GOLD oz : 7.539
Change : -0.025 or -0.33%

Dow in SILVER oz : 379.11
Change : -6.38 or -1.66%

Dow Industrial : 13,021.83
Change : 36.71 or 0.28%

US Dollar Index : 809.20
Change : -0.094 or -0.01%

The GOLD PRICE gained $10.70 to $1,727.20 (up 0.62%), nor did silver lag behind, up 66.4 cents to 3434.8c, a 1.97% gain.

Solid action, controverting, gainsaying, and nailing the lid on any downside outcome.

The GOLD PRICE needed to climb over $1,720 - $1,725 resistance. Good enough, well done, but still must wipe away yesterday's shame by closing above $1,740 -- reasonable chance of accomplishing that in the sunny morning.

On a four month chart Gold has validated the imperishable (Oh, I hope I don't have to eat THAT word) strength and solidity of that neckline support around $1,705. It leapt up today, vaulting over the 20 DMA (1,722.93) with ease.

In the teeth of yesterday's fright, the market has spoken, and it said, "No further!"

The SILVER PRICE fall yesterday pictures a classic spike bottom Today it began rising at the New York open, and by 9:30 gapped up, then gapped again, from 3390c to 3425c. Made one little dip to 3395 late in the day, unless that is some artifact on my chart, then snapped right back.

Four month chart tells an even stronger tale, with silver posting its highest interday price since October 11, 3449c. The SILVER PRICE stands way above all its moving averages (50 = 3318, 200 = 3098, 20 = 3277, 300=3127). Little to say here outside, "Next stop, 3550c!"

Of course, I could be wrong, being nothin' more than a natural born fool from Tennessee. But y'all know, now, that sometimes in the play the fool turns out to be the wisest person around? Think about King Lear. But shucks! We don't have no kings in Tennessee, only fools.

Buy silver and gold. A very big and long running rally is just now starting. Buy.

Sometimes I feel like the only sane person in the whole durned lunatic asylum. Silver and gold came right back today while Republicans and Democrats dashed hopes of dodging the fiscal cliff by sniping at each other. The corruption, self-centeredness, and self-serving waffling from business, finance, and government are all undermining all loyalty and confidence from the core supporters of US society, namely, the middle class. I sweat bullets and weep thinking about what sort of hideous false prophet they are paving a road for, loudly and repetitively spouting his nostrums so that the weak, weary, and distrusting flock to him -- not because he has solutions indeed, but because he consistently preaches the same line, like Hitler, Lenin, Stalin, Roosevelt, Mussolini, Peron. Their solutions never worked, they just kept on repeating them so long that folks believed they might, and because they were so desperate to hear ANYBODY with a plan.

Having hacked up that bone from my throat, I'll look at markets now.

The scabby, ragged US dollar turned down again today, having spent all it could beg on yesterday's drunk. It quickly sank again to the gutter bottom just above 80 at 80.021. Last four days have left behind a head and shoulders top with a neckline bare basis points above 80.

Eight month chart hovers just above catastrophe. Words like "seismic event" and "Krakatoa" come to mind. 50 DMA stands at 80.08, and just a few basis points under that some long term support. Once the dollar falls though that all those gamblers who had been shorting the euro until the NGM shooed them off will rush to short the dollar. Won't be pretty. RSI and MACD chant together in a Russian bass "Down down down DOWN!"

Euro rose a scootch today, up 0.15% to $1.2978. Trying to peek through the downtrend line and stands barely above its clustered moving averages. Likely to run to $1.3150 at least, maybe higher. Will stink just as foully at $1.3150 as it does here, no, worse.

Yen ended down 0.04% at 121.80 cents/Y100. I imagine some sort of understanding exists among the gentlemen central bankers that the 120 - 118 number is about as low as the yen will be allowed to fall.

US$1=Y82.10=E0.7705=0.029114 oz Ag=0.000579 oz Au.

Stocks beat the 13,000 resistance today, and so will run a little higher. Dow gained 36.71 (0.28%) to 13,021.83. S&P500 added 6.02 to 1,415.95 (up 0.43%).

Gain today was more than revealed by a 36.71 point skip. Stocks broke through the downtrend line left by their October - end-November fall, plus crossing above their 20 DMA (12,890) and 200 DMA (12,995). That sets the Dow up for a test of the 50 DMA (13,209) and resistance at 13,300.

Investors are all besotted with hopeful economic news, but just like a drunk in a bind, any old alcohol will do, it doesn't have to be single malt Scotch. Thus the on again, off again fiscal cliffs talk thrills them, or if that fails, housing climbing some meaningless fraction of a point. If it wasn't that, it's be stray dogs.

Maybe I am just a sourpuss. Maybe, or maybe I see that fundamental purging and repairs to the economy have not even been attempted. Just the opposite, the flood of money has prevented them. Yet the answer out of the Potomac swamp will be the same: another wave of liquidity. Print until we die, and after us, the flood!

Can't be fixed.

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.