Gold Price Close Today : 1730.30
Change : - 0 or 0.00%
Silver Price Close Today : 32.513
Change : -0.077 or -0.24%
Gold Silver Ratio Today : 53.219
Change : 0.126 or 0.24%
Silver Gold Ratio Today : 0.01879
Change : -0.000045 or -0.24%
Platinum Price Close Today : 1562.50
Change : 7.10 or 0.46%
Palladium Price Close Today : 607.25
Change : -3.00 or -0.49%
S&P 500 : 1,380.03
Change : 0.18 or 0.01%
Dow In GOLD$ : $153.13
Change : $ 0.04 or 0.03%
Dow in GOLD oz : 7.408
Change : 0.002 or 0.03%
Dow in SILVER oz : 394.22
Change : 0.99 or 0.25%
Dow Industrial : 12,817.39
Change : 2.00 or 0.02%
US Dollar Index : 81.04
Change : 0.094 or 0.12%
The silver and GOLD PRICE spent a quiet day. Silver lost 7.7 cents to 3251.3c while gold remained unchanged at $1,730.30.
Those closes might mislead you. Five day chart suggests both metals will drop for a day or two, gold to $1,720 or even $1,700. The market proverb says that the bull always tries to shake off as many riders as possible, hence these frights to send the timid flying.
The GOLD PRICE today traded in a narrow range between $1,737.73 and $1,725.59. That leaves $1,737 as the next barrier in gold's path. I continue to expect gold's rise off last week's bottom will be speedy and stout, given a few day's lull right here to consolidate gains.
SILVER PRICE ranged today from 3272 to 3221, pretty narrow. Silver might drop back to 3200c, even 3150c. That's typical of a market feeling with its feet for the bottom before it flies higher.
Y'all know I watch silver's behaviour against its 300 day moving average. In a bull (primary uptrend) market, of course, silver will spend most of its time above the 300 DMA, but in heavy corrections such as we've seen in the past 17 months, it falls below the 300 DMA, and before it breaks finally above will dance back and forth over it. That's happened in the last three weeks, and now the 300 stands at 3158c.
Momentum indicators also, like the MACD and RSI, show that silver has miles of upward room to fly.
From time to time I remind y'all that you should take these commentaries as "entertainment," just interesting chit-chat while we are watching silver and gold inexorably climb. 'Twould be a terrible tragedy to get so focused on the short term that you miss the longer term trend. First principle of investing is "always align your investments with the primary trend." Primary trend for stocks and the US dollar is DOWN, for silver and gold UP. Your job is to get on the right side of that trend. Once you've done that, you can watch these daily fluctuations, even 17 month corrections, with all the equanimity of a fat rooster in a possum- proof coop.
Long and short is, stop vacillating and buy silver and gold now. The market has handed you a correction-rally-correction that offers about as low risk an entry point as you will ever see. Not 100% safe of course, but neither is sitting there in your living room waiting for a meteor to drop through the roof into your lap.
Today was a holiday in the US, Veteran's Day, which once upon a time was "Armistice Day" commemorating the end of World War I at 11:00 a.m. on 11/11/1918: the eleventh hour of the eleventh day of the eleventh month. Anyhow, nobody much pays any attention to it, except the post office, and certainly not markets because they are too busy getting and spending to let even a single day slip by in remembering, celebrating, or silence.
Still, enough folks stayed home to make it an astonishingly dull day.
Stocks rode the roller coaster today, up, down, way up, and way down again to close changed by a massive 2.00 for the Dow at 12,817.39. S&P500 rose 0.18 to 1,380.03. Bewilderment reigned as other indices fell by like minute amounts. The big boys will return tomorrow to give stocks some direction.
Best outcome I can see for stocks is a rally back up to the neckline of the head and shoulders formed January through March 2011. That would carry them up to about 13,300 (1,410 for the S&P500) where they last broke down. After that final, tender kiss good-bye you can kiss 'em good-bye. Stocks have formed a gigantic broadening top enclosing a smaller broadening top and the outcome will be weeping and wailing and gnashing of teeth and pulling of hair amongst stock investors. Y'all don't say I didn't warn you.
The scrofulous and disgusting US Dollar index rose today 11.4 basis points to trade now at 81.056 (up 0.15%).
Dollar has floated up against the 81.10 level now for two days, and looks set to break through for higher altitudes. If -- IF -- the dollar can climb through 81.10 then it will keep flying to 81.50 or even 82. What's odd here? That dollar strength sloweth not down silver and gold.
That is an epochal change, likely not permanent yet, but certain to become so. Silver and gold are de-coupling from the US dollar and the other scabrous fiat currencies. They have already established themselves as alternatives to all fiat currencies, but we've seen them move generally inversely to the dollar and not really independently. That's changing, and what I mean by "de-coupling." As silver and gold attract more and more buyers the course of the US dollar or euro or yen will have less and less influence on their course, which will grind steadily upward, disregarding the fiat currencies.
I call this "epochal" because it reflects the public REPUDIATING fiat currencies and their unreal, fractionalized, hypothecated financial system. Desire for safety is outweighing greed. Oh, all this won't bear its final fruit for a number of years, but it's coming: a from-the-ground-up reform of the monetary and financial system, and silver and gold will play a star role.
Today's dollar values: US$1 = Y79.47 = E0.7867 = 0.00058 gold ounce = 0.03076 silver ounce.
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.