Gold Price Close Today : 1669.50
Change : -27.50 or -1.62%
Silver Price Close Today : 31.595
Change : -0.611 or -1.90%
Gold Silver Ratio Today : 52.841
Change : 0.149 or 0.28%
Silver Gold Ratio Today : 0.01892
Change : -0.000053 or -0.28%
Platinum Price Close Today : 1594.50
Change : -15.00 or -0.93%
Palladium Price Close Today : 689.85
Change : -7.35 or -1.05%
S&P 500 : 1,446.79
Change : 16.43 or 1.15%
Dow In GOLD$ : $165.31
Change : $ 4.10 or 2.55%
Dow in GOLD oz : 7.997
Change : 0.199 or 2.55%
Dow in SILVER oz : 422.57
Change : 11.61 or 2.82%
Dow Industrial : 13,350.96
Change : 115.57 or 0.87%
US Dollar Index : 79.57
Change : -0.067 or -0.08%
Even thought the dollar fell a hefty 19.6 basis points (0.25%) today to 79.343, stocks rose and the silver and GOLD PRICE fell. I said yesterday that silver and gold looked tired, and they were. Rejoice, turn somersaults! This is what we've been waiting for.
The SILVER PRICE fell today 61.1 cents to 3159.5c. At its low it hit 3136, NOT coincidentally the 300 day moving average, one of my targets.
Think: silver might drop to the 200 DMA still, at 3088c, or it might stop at the uptrend from the June low, now about 3080c. Finally, it might even fall all the way to the downtrend line from the 4/2011 high, now about 2900c. If the worst happened and silver fell from here to 2900c, that's only an 8.3% downside risk. And today might have been the end of it. Personally, I bought a good bit of silver today.
The GOLD PRICE fell $27.50 to $1,669.50, right above the 150 DMA at 1,668.05. Low came below that at $1,662.70.
The 150 and 200 DMA ($1,663.43) are right beside each other, so that low hit 'em both today. That could be the end of gold's fall.
What if it ain't? Then it could fall to the uptrend line form the June 2012 low, now about $1,648, or even the downtrend line from the September 2011 high, now about $1,620.
I doubt it. I doubt either silver or gold will fall much further. I bought gold today, too, and would have bought more if I had been able to find small gold coins, which have lately all but disappeared.
But I would have bought today even if I had been fairly certain both metals would fall further. Why? Just because I like to empty my pockets? No, because I've learned that I do not know everything and cannot see the future perfectly, so I have to force myself to buy a logical, pre-determined price targets. I don't always win, doing that, but I at least I don’t have to stare at a chart and ask myself, "Why in the world didn't I buy when it was so low?"
Anybody who wants to wait for the perfect price, feel free to do so. I don't do that any more.
I've got to scoot out of here early and take a much-needed break with my wife. Driving up to Cookeville and nearby Hidden Springs Nursery, a magical place hidden in a great rift in the earth like something out of an Edgar Rice Burroughs novels. And they raise great nursery stock, especially a hybrid Honey Locust that has no thorns but produces plenty of those sweet pods that horses, goats, cattle, pigs, sheep, and everything else loves to eat. Back tomorrow, God willing.
Stocks finally made it to, and probably through, 13,300. Dow added 115.57 (0.87%) today to close at 13,350.96. S&P4500 rose 16.43 (1.15%) to 1,446.79. Exuberant enthusiasm. Let 'em spasm all by themselves. This stock rally is most likely the last one before the big plunge.
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.
