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Friday, December 28, 2012

The Gold Price Traded in a Tight Range Closing Down 0.3 Percent at $1,654.90

Gold Price Close Today : 1,654.90
Gold Price Close 21-Dec : 1,659.10
Change : -4.20 or -0.3%

Silver Price Close Today : 29.92
Silver Price Close 21-Dec : 30.142
Change : -0.222 or -0.7%

Gold Silver Ratio Today : 55.311
Gold Silver Ratio 21-Dec : 55.043
Change : 0.27 or 0.5%

Silver Gold Ratio : 0.01808
Silver Gold Ratio 21-Dec : 0.01817
Change : -0.00009 or -0.5%

Dow in Gold Dollars : $ 161.61
Dow in Gold Dollars 21-Dec : $ 164.35
Change : -$2.74 or -1.7%

Dow in Gold Ounces : 7.818
Dow in Gold Ounces 21-Dec : 7.951
Change : -0.13 or -1.7%

Dow in Silver Ounces : 432.42
Dow in Silver Ounces 21-Dec : 437.62
Change : -5.20 or -1.2%

Dow Industrial : 12,938.11
Dow Industrial 21-Dec : 13,190.84
Change : -252.73 or -1.9%

S&P 500 : 1,402.43
S&P 500 21-Dec : 1,430.15
Change : -27.72 or -1.9%

US Dollar Index : 79.663
US Dollar Index 21-Dec : 79.569
Change : 0.094 or 0.1%

Platinum Price Close Today : 1,517.40
Platinum Price Close 21-Dec : 1,536.90
Change : -19.50 or -1.3%

Palladium Price Close Today : 699.60
Palladium Price Close 21-Dec : 681.80
Change : 17.80 or 2.6%

The silver and GOLD PRICE remain lethargic. Silver lost 26.4 cents today and closed Comex at 2992c. Gold mislaid $7.80 to end at $1,654.90.

The GOLD PRICE range was tight, $1,662.60 to $1,651.10, but so 'twas the whole week. Stood rangebound by $1,667 and 1,650. Longer term chart makes me expect one final push down, but you'll know I am wrong if gold closes above $1,684.10, the last low. One last push down might carry to $1,620 or even $1,610.

The SILVER PRICE traded tightly today, too, from 3027.9c to 2987c. Week was bounded by 3040c and 2970c. Marking time, that's all.

Down below one last exhaustion selling spike down could carry silver to 2900c. It needs to close above 3100c to reverse.

Keep your eyes on the horizon. Silver and gold remain I a bull market (primary long term trend). If they have not already bottomed, they should in January's first two weeks. This is a time to BUY silver and gold, not panicking into selling them, and not a time to fret. Relax.

Everything went down this week? Everything? Yes, everything. Stocks were the biggest losers, down 1.9%. Well, okay, Palladium didn't fall. And the dollar was flat as a fritter. Otherwise the bleeding was general.

A look at the US Dollar's chart this week won't send you away enlightened. It merely traded in a range between 79.8 and 79.35, with a leetle spike today to 79.90. Flat. However, the longer term trend remains down, so you can expect small things from the dollar.

Euro remains above its downtrend line, but paralyzed and unable to advance. Not an encouraging sign, but the euro remains in an established uptrend, and a trend in force remains in force until violated. Closed $1.3218, down 0.18%

The Yen, on the other hand, is plumbing the depths of a politically engineered drop over Niagara Falls. Rose today 0.21% to 116.39 cents per 100 yen. The yen at this depth must be making the Nice Government Men all over the world nervous, because it screams "Competitive devaluation!" something no central banker in his right mind wants to see start. After all, where is the honor among thieves?

Stocks plunged deeply into trouble today. Somebody took a meat-ax to the Dow and chopped off 158.2 (1.21%), leaving it bleeding at 12,938.11, WAY below that 13,300 resistance above. Whoops. Did I mention that is also WAY below its 200 DMA at 13,015? Or its 50 DMA at 13,069? Or its 20 DMA at 13,140? No, I don't think I did.

Fix this in your mind: it is possible -- barely -- that a market in a primary down trend like stocks might, in the course of a rally, re-visit its 200 DMA and live to rally longer, it's just not too likely. That 200 DMA, remember, is the watershed of a primary downtrend, which spends most of its life BELOW that 200 DMA. Dow has now cast a continuing rally into the drawer with all "less likely outcomes."

S&P did a little better. Misplaced 5.13 (0.61%) to close at 1,402.43. S&P500 has not fallen below its 200 DMA (1390) but is below its 20 and 50 DMA.

More to the point are the charts of the Dow in Gold and S&P500 in gold. Both formed island reversal tops, both have fallen sharply down from that. Other indicators scream, "Expect lower prices!" Whatever they do in nominal dollar terms, from here stocks will lose lots of value against gold and silver.

Y'all enjoy your weekend.

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.