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Monday, January 28, 2013

The Gold Price Fell a Little Along with Stocks Gold Closed at $1,652.90

Gold Price Close Today : 1652.90
Change : -3.70 or -0.22%

Silver Price Close Today : 30.766
Change : -0.424 or -1.36%

Gold Silver Ratio Today : 53.725
Change : 0.612 or 1.15%

Silver Gold Ratio Today : 0.01861
Change : -0.000214 or -1.14%

Platinum Price Close Today : 1661.20
Change : -32.70 or -1.93%

Palladium Price Close Today : 739.80
Change : -0.45 or -0.06%

S&P 500 : 1,500.18
Change : -2.78 or -0.18%

Dow In GOLD$ : $173.61
Change : $ 7.50 or 4.51%

Dow in GOLD oz : 8.399
Change : 0.363 or 4.51%

Dow in SILVER oz : 451.21
Change : 5.68 or 1.28%

Dow Industrial : 13,881.93
Change : -14.05 or -0.10%

US Dollar Index : 79.80
Change : -0.002 or 0.00%

Nothing much happened today beyond the foreseeable — Stocks fell, the silver and GOLD PRICE fell a little further, dollar was flat, and the other scabby fiat currencies as well.

Friday (25 January) I somehow posted the wrong closes for the Dow and S&P500. Correct closes were Dow 13895.98 (up 70.65) and S&P500 at 1,502.96 (up 8.14). I have no idea how that error crept in. Please forgive me.

The GOLD PRICE fell a little further, $3.70, to $1,652.90. Silver lost 42.4 cents to 3075.6.

Today gold's range touched the uptrend line from June '12 and the downtrend line from the November 12 high. In fact, it touched them exactly where they crossed.

Try to picture a falling wedge in your mind. Gold breaks out of that wedge about 2/3 of the way down, rallies to $1,698, then falls back, but (so far) only for a Kiss Back to the downtrend line it has just broken though upward.

Frustrating as this is, it doesn't point to a fall to the earth's core, but rather, another rise. Worst hand raised against that is gold's fall beneath its 200 day moving average on Friday. Needs to fix that quickly.

The SILVER PRICE chart looks much the same. However, silver hasn't kissed back all the way to that short term down trend line, and remains above its 200 DMA (3065c), but not by much. About 3045c tomorrow will lie the strong uptrend line from the June '12 low.

I was going back over some trades today from 2008 - 2009. I remember buying gold at $858 with my heart in my mouth in December. In May 2009 I was still nervous at 978.50, but bought anyway. And in November 2009, 17.098 silver looked awfully risky, but still I bought. Point is, markets always look risky, and exactly the right time to buy is the time your mind, body, and intestines will scream loudest. And sometimes, they're right.

Life comes with no guarantees, unless you are a slave.

Stocks dropped, the Dow at 13,881.93 down 14.05 (0.1%) and the S&P500 down 2.78 (0.18%) at 1,500.18. Only 4 or 5 times in the last 10 years have stocks been more highly oversold. They stand at their upper trendline resistance. They've sketched out a massive head and shoulders top that stretches back to 1996, and they've both lately reached the point of rising wedge formations.

Sure, maybe they can rise from here -- but don't bet on it.

Dollar, yen, and euro were all flat today. US dollar index closed 79.804, basically unchanged from Friday. Euro fell a miniscule 0.07% to $1.3450, while the yen rose 0.07% to 110.17 cents/Y100.

These gappy cahrts are hard to read. Euro gapped up on Friday, then traded in almost exactly the same range today, leaving a little isolated island up there. Must fill in that gap or advance sharply or it runs the risk of breaking down.

Be certain the world's big central bankers are furious with the Japanese and their competitive devaluation. They don't know much, but they remember the currency wars of the 1930s and would like to avoid them.

US$1=Y90.85=E0.7435=0.325139 oz Ag=0.000605 oz Au.

I found out something unusual about my new book, At Home in Dogwood Mudhole. People keep writing me that they're reading the book outloud with wife or husband, or reading it to their children. One of my sons has been reading it to his two boys, Gus (6) and Felix (4). Thinking, I reckon, on something he had heard at school, he stopped my son Christian while he was reading and asked, "Dad, were Mama Sue and Big Daddy alive in colonial times?" I didn't know we looked THAT old.

Y'all can still get copies of AHIDM at www.dogwoodmudhole.com.

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

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com
1-888-218-9226
10:00am-5:00pm CST, Monday-Friday

© 2013, 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.