Gold Price Close Today : 1,690.40
Change : 7.70 or 0.46%
Silver Price Close Today : 31.786
Change : 0.272 or 0.86%
Gold Silver Ratio Today : 53.181
Change : -0.215 or -0.40%
Silver Gold Ratio Today : 0.01880
Change : 0.000076 or 0.40%
Platinum Price Close Today : 1697.80
Change : 5.60 or 0.33%
Palladium Price Close Today : 725.40
Change : -0.30 or -0.04%
S&P 500 : 1,480.94
Change : 8.31 or 0.56%
Dow In GOLD$ : $166.27
Change : $ 7.50 or 4.72%
Dow in GOLD oz : 8.043
Change : 0.363 or 4.72%
Dow in SILVER oz : 427.74
Change : -1.00 or -0.23%
Dow Industrial : 13,596.02
Change : 84.79 or 0.63%
US Dollar Index : 79.69
Change : -0.120 or -0.15%
The GOLD PRICE burst through that early December low at $1,684.10 and added $7.70 to end at $1,690.4. High came at $1,695.56. Gold now stands above all its moving averages except the 50 day ($1,695.72). It has broken out of its downtrend line from the November high, and approacheth the downtrend line from the October high. RSI and MACD have all turned up. Volume is rising with price. Buddy, it don't get much better than this.
The SILVER PRICE rose today 27.2 cents to close at 3178.6c, with a new intraday high and a new high for the move off the 4 January low. Screeched to a halt just a gnat's whisker off the 50 day moving average (3200c).
But looky here: eye hath seldom seen, nor ear heard, trading like gold and silver did today. Come open about 8:30, silver gapped down from 3142 and fall clean to 3104.5c by 9:15. Turned around, gapped up a couple of short jumps (I'm looking at a 5 minute interval chart), then jumped clean from 3135 to 3165c in five minutes. Climbed a bit more to 3188.6c, then leveled off rest of the day to that 3178.6c close.
Behold the GOLD PRICE chart, bogus as they come. Early on selling knocked gold from $1,681 by a gap to $1,676. Gold was on the ropes, bumbling and tumbling to $1,666.59 by 9:00. Gold shook it's head, made a tiny gap up to $1,675 (5 minute interval chart, remember) then leapt from there clean to $1,686! And kept on climbing to the $1,695.56 high, and leveled off to close at $1,690.40.
Ladies and gentlemen, this ain't normal trading. Looks like some NGM smarties thought they'd whack gold again today like they did last Friday, but gold turned around and whacked 'em back, breaking a couple of teeth in their jaw. Maybe I'm no more than a natural born fool from Tennessee, but when a market takes a body blow like that, then fights back to close higher -- through heavy resistance -- well, that old dog wants to hunt, and will. Count on it.
Final confirmation that silver and gold posted their lows on 4 January will come with a gold close over $1,725 and silver above 3250c. However, with all the other indicators pointing up, I'm buying the rest of what I intended to buy. Both metals may suffer and labor some more, but the lows are behind us, I believe.
Nearly daily some fearful person writes me about "reporting issues” with silver and gold. Y’all get this set in your minds: NOTHING need be reported when you buy, unless you buy for more than $10,000 in cash. REPEAT, no matter what anybody tells you, when you buy silver and gold, there is no requirement whatever that the purchase be reported to any government, as long as you don’t pay cash. If you pay cash, it’s the cash and not the gold or silver that’s reported.
Most of that fear about government knowing that you have silver or gold is fomented by salesmen trying to sell you highly over-priced numismatic coins under the the myth they aren't "reportable" or "confiscatable” or sell you something else. Fear boosts sales.
This is not 1934. THEN, gold contributed a meaty part to the 35% required banking reserves. NOW, gold is no longer held in commercial banking reserves, and the reserve requirement is less than ¾ of 1%. Roosevelt had to steal the gold to make his inflation plan work, otherwise gold would have offered to the realizers an escape route out of the dollar.
All the 1934 reasons to confiscate gold have vanished in 2013. You are more likely to be abducted by aliens on your way home tonight than you are to have your gold confiscated by the federal government. Besides, you’re not going to turn over your gold to a government agent any more than you'd turn over your assault rifle.
Unless you want your family to starve. (For me, these questions present no moral dilemma whatever.)
One last word: recently a bill has been introduced into the Illinois legislature called the "Illinois Precious Metal Purchasing Act." It provides that a person "who is in the business of purchasing precious metal shall obtain a proof of ownership, create a record of the sale, and verify the identity of the seller."
Some analysts have incorrectly interpreted this. It ONLY applies to people "in the business of purchasing precious metals," i.e., scrap buyers. Further proof is that they would be required to open their records to local law enforcement. Similar laws are already in effect all over the country, and were put in place during the last gold and silver run-up in 1980 to make it harder for burglars to fence their stolen goods. To see the bill, go to http://bit.ly/WoFeoC and prove it for yourself.
Now, take a deep breath and relax. Go home, kiss your wife or husband and children, enjoy a tasty supper, and thank God for peace and rest, at least for today.
The dollar index once again hit its face against 79.80 like a German shepherd chasing a parked car. Fell off and never recovered, losing 12.2 basis points (0.16%) to 79.685.
US$1=Y89.82=E0.7478=0.031460 oz Ag=0.000 592 oz Au.
Other markets -- stocks and metals -- rose all out of proportion to the dollar's drop. Stocks made new highs, higher than last fall. Last September the Dow's high close came 20 September at 13,596.93, but it made an intraday high early-October at 13,661.87, then fell like Jerry Lee Lewis' career after he married a 13 year old. S&P500 made a September high at 1,465.77 and same day an intraday high at 1,474.51.
Today the S&P touched 1,485.16 and at the close had gained 8.31 (0.56%) to 1,480.94 -- new intraday high and new high close.
Dow today reached 13,633.89 and gained 84.79 (0.63%) to end at 13,596.02.
Me, O, my. That bear is baiting his den with the hope of big, big things to come, but stay away from that cave. Once the bear fills it up, he will devour the foolhardy at leisure.
Do not overlook the Dow measured by gold or by silver. Dow in Gold remains below its downtrend line. Ditto Dow in silver. Momentum for both has turned down. Metals will beat stocks.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
10:00am-5:00pm CST, Monday-Friday
© 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.