Gold Price Close Today : 1692.80
Change : 6.20 or 0.37%
Silver Price Close Today : 32.147
Change : 0.245 or 0.77%
Gold Silver Ratio Today : 52.658
Change : -0.210 or -0.40%
Silver Gold Ratio Today : 0.01899
Change : 0.000075 or 0.40%
Platinum Price Close Today : 1696.30
Change : 24.30 or 1.45%
Palladium Price Close Today : 729.15
Change : 7.15 or 0.99%
S&P 500 : 1,492.56
Change : 6.58 or 0.44%
Dow In GOLD$ : $167.45
Change : $ 7.50 or 4.69%
Dow in GOLD oz : 8.100
Change : 0.363 or 4.69%
Dow in SILVER oz : 426.55
Change : -1.32 or -0.31%
Dow Industrial : 13,712.21
Change : 62.51 or 0.46%
US Dollar Index : 79.88
Change : -0.144 or -0.18%
Solid day today for the silver and GOLD PRICE. Gold rose $6.20 to $1,692.80 and silver gained 24.5 cents to 3214.7. Silver conquered 3200c resistance, while gold is still struggling with $1,695.
Five day GOLD PRICE chart shows it's range bound by $1,695 and $1,680. However, it's forming a long narrow triangle that promises to break out upside. The undecided are waiting for gold to validate its rally by climbing over $1,705 or $1,730. I don't expect gold's move above $1,695 will be inchmeal. Rather, gold will pull on its seven league boots and step on out. Probably this week.
Gold keeps stalling at $1,695. high. Low today cam at $1,686.80.
One reason I know gold has attracted huge physical demand is the relative scarcity of inexpensive small and large gold coins. Somebody has been vacuuming them up for over two months. Wholesalers just don't have any, and nobody's selling.
While gold remained range bound, the SILVER PRICE hammered through 3200c resistance to reach new highs for the move today. Silver stands above every moving average, having punched through the 50 DMA today. (Gold hasn't quite closed through its 50 DMA at $1,694.76, but that's the only one still above it.)
From about 9:30 a.m. silver made a gappy move up and reached a high at 3234.2c. Low was 3182c.
More heartening still, silver pierced the downtrend line from its late November 3449c high. Poked its head clean through and sat down there. From here 3300c offers some round number resistance, but that 3449c last high is the first real target.
Silver and gold have left the starting gate, and are off and running. Stop waiting to buy.
Here's the Big Picture of what's going on. The world is slowly repudiating all fiat currencies as the system that spawned them fails. The worst is not behind us, it is yet to come. By the time this repudiation ends, the dollar and all the other scrofulous currencies will be only a dim and bitter memory, and a new monetary system will be established around silver and gold. But that's years away, and before then must come all the hardship, heartbreak, and catastrophe. It will take utter disaster to cement the repudiation, and no doubt some violence, most likely by governments against their citizens as the dying class seeks to hold on to power.
But it will end, and those who have capital -- gold and silver -- will be positioned to help build a new, just, prosperous, and parasite free economy.
The mountain gave birth to a mouse, and panicked all the shorts. I mean, of course, the Bank of Japan's announcement today that it would buy assets just like Big Ben Bernanke, but only beginning next year. Shorts panicked and the yen gapped up to 112.71 cents/Y100 (up 1.56%). Maybe that's the end of the dropping yen, or, dare I say, the currency has lost its yen to drop?
Speaking of nasty fiat currencies, the US dollar (?dolor?) index took a whipping today with a peach tree limb, down 0.2% to 79.883. Lost 14.4 basis points when it slipped through that morale-busting 80 level.
Dollar index still hasn't decided whether it will fish or cut bait. Can't rise above 80.2, won't fall below 79.60. 5-day chart is either indecisive and diddling, or about to fall further. Not clear, but any break below 79.6 carries the dollar lower, any break above 80.20 carries it skyward. Dollar ain't got nothing I want.
Euro stalled at $1.3400 six days ago and hasn't felt perky since then. Made two little tops that might point it lower. Lost 0.02% today, basically unchanged at $1.3319. Will continue climbing/crabbing sideways unless it breaks $1.32.
US$1=Y88.72=E0.7508=0.031107oz Ag=0.000591 oz Au.
Dow hit its highest point since December 2007 today. Closed 13,712.21, up 62.51 or 0.46%. S&P500 rose 0.44% (6.58 points) to 1,492.56.
Non-confirmations always make me nervous. When one stock index is rising, the others ought to rise, too. S&P500 is a little behind the Dow, and both the S&P500 and the Dow have over the past few years been the only world stock indices that have held up. The Dow Jones World Stock Index hit a 321.07 high in 2007, and today closed 270.57, about 16% lower. Compare the Dow today at only 3.4% lower than its 2007 high. All this does not foreshadow a bright future for stocks or the economy.
Meanwhile I've been gazing at the Charts for the Dow in Gold and the Dow in Silver. Both have formed diamond tops, and Dow/Silver is closer to breaking down than Dow/Gold. Only a matter of time till both break down.
Your worst mistake is to look around at today and forget what the future holds. Your best strategy is to ride the gold and silver bull market to safety, continuing to buy. Right now, having finished the long correction since October, is the right time to buy. Now.
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.
