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Monday, December 10, 2012

The Gold Price Closed Up at $1,712.50 and Needs to Climb to $1,725

Gold Price Close Today : 1712.50
Change : 7.90 or 0.46%

Silver Price Close Today : 33.039
Change : 0.156 or 0.47%

Gold Silver Ratio Today : 51.833
Change : -0.006 or -0.01%

Silver Gold Ratio Today : 0.01929
Change : 0.000002 or 0.01%

Platinum Price Close Today : 1599.20
Change : 16.30 or 1.03%

Palladium Price Close Today : 695.55
Change : 6.75 or 0.98%

S&P 500 : 1,413.94
Change : 4.66 or 0.33%

Dow In GOLD$ : $158.96
Change : $ (0.24) or -0.15%

Dow in GOLD oz : 7.690
Change : -0.011 or -0.15%

Dow in SILVER oz : 395.74
Change : -0.67 or -0.17%

Dow Industrial : 13,074.74
Change : 39.55 or 0.30%

US Dollar Index : 80.23
Change : 0.404 or 0.51%

Today the GOLD PRICE picked up $9.00 to score $1,713 at close. Silver added 24.7 cents and shuttered Comex at 3330c an ounce.

No question this was a better day. Five day chart shows two bottoms at $1,685, one on Wednesday and one Thursday, followed by a sharp rise. If the chart is accurate and not sporting an artifact, there was a very short spike to $1,685 on Friday, too, but that may be a misprint. Thereafter gold climbed steadily.

Today it put in a little peak at $1,716.74, and never fell below critical $1,705 support (low was $1,705.18.

Now look at the SILVER PRICE. The bottoms Thursday and Friday was successively higher, 3250c and 3260c. After Friday's low, silver continuously climbed toward today's 3341.5 high, then rolled over.

The silver and GOLD PRICE may well have posted their lows, but I've been slapped on both sides of my face too often in this range for me to call a bottom yet. Silver needs to close above 3350c or below 3250c and gold above $1,725 or below $1,685. I'd buy in either of those places, but only when silver and gold exceed those numbers, up or down, will we have a clue what the very short term holds.

By "very short term" I mean till year-end. If they haven't dropped by then, the new year will kick in and take them up.

You see, with the silver and GOLD PRICE there is no "Fiscal Cliff" because long decades ago the Fed and the US government pushed the US dollar over that cliff, and the faster and harder it falls, the faster and harder silver and gold will rise.

Really not any more complicated than that, folks. Only reason I can grasp that is that I have no Harvard MBA, no MIT Economics PhD (Piled Higher and Deeper), no cushy job losing other people's money on Wall Street while pretending to "manage" their money. Since I'm only a natural born fool from Tennessee, why, I don't know no better than to call a fool a fool, and to name a thing for what it is.

Wish I could get educated, but just as soon as I see idiocies, I recognize we're kin and the words just POP out of my mouth. That's why I can't visit the White House or congress.

The eurocrat imposed on Italy, Monti, to bring the country down into austerity, is done for. Silvio Berluscone and his party have withdrawn support fro him, so he will resign. Interest rates the Italian government has to pay responded by rising since Berlusconi is already campaigning on an anti-Germany, anti-austerity program. Never mind all Berluscone's baggage, longer and gamier than the baggage train of the Khan's Golden Horde, the point is that opposition is surfacing, and making enough waves to drive out the technocrat. Euro remains imperilled.

US dollar index gave ground today, losing 21.4 basis points to 80.318 (down 0.28%). If this little reflex (upward) reaction hasn't already sputtered out, it might yet reach the 200 DMA at 80.80. If it can't cross that line, dollar is just marking time until it falls again.

US$1=Y82.37=E0.7726=0.030 030 oz Ag=0.000 584 oz Au.

[Short Exchange Rate Lesson: The US Dollar exchange rate in Euros can be expressed as (a) dollars per euro, today $1.2944 or (b) euros per dollar, today E0.07726. Likewise, silver can be expressed in "dollars per ounce," today $33.30, or "ounces per dollar," today 0.030030 oz.]

Stocks have surely embarked on a rally. For the second day the Dow closed above its 50 DMA (13,142), and already stood above the 200 and 20 DMAs. Higher. Not clear yet whether it wills top around 13,300 or reach higher, but 'tis clear that this peak likely will be the final disaster dénouement, the last peak, and then the flood.

Today the Dow rose 34.14 (0.26%) to 13,189.27. S&P500 gained 2.06 (0.15%) to 1,420.13.

Yet only the unwary would gauge stocks' performance by their mere, un-inflation-adjusted numbers. Only measuring them against gold and silver tells us whether they are gaining purchasing power (value). Against gold, stocks ran over Victoria Falls in November, then rallied back about 3/4 of the way. Now they've stalled and are rolling over. Against silver stocks have painted the same picture, only worse. Rebound off November low has only been about 1/3 of the foregoing loss.

What, what, what does this say? That regardless what stocks do, high or low, silver and gold are both set to outrun them speedily.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com
1-888-218-9226
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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.