Gold Price Close Today : 1,668.90
Gold Price Close 4-Jan-13 : 1,648.10
Change : 20.80 or 1.3%
Silver Price Close Today : 3108
Silver Price Close 4-Jan-13 : 2989.6
Change : 118.40 or 4.0%
Gold Silver Ratio Today : 53.697
Gold Silver Ratio 4-Jan-13 : 55.128
Change : -1.43 or -2.6%
Silver Gold Ratio : 0.01862
Silver Gold Ratio 4-Jan-13 : 0.01814
Change : 0.00048 or 2.7%
Dow in Gold Dollars : $ 167.31
Dow in Gold Dollars 4-Jan-13 : $ 168.52
Change : -$1.21 or -0.7%
Dow in Gold Ounces : 8.094
Dow in Gold Ounces 4-Jan-13 : 8.152
Change : -0.06 or -0.7%
Dow in Silver Ounces : 434.60
Dow in Silver Ounces 4-Jan-13 : 449.40
Change : -14.80 or -3.3%
Dow Industrial : 13,507.32
Dow Industrial 4-Jan-13 : 13,435.21
Change : 72.11 or 0.5%
S&P 500 : 1,470.68
S&P 500 4-Jan-13 : 1,466.47
Change : 4.21 or 0.3%
US Dollar Index : 79.518
US Dollar Index 4-Jan-13 : 80.491
Change : -0.973 or -1.2%
Platinum Price Close Today : 1,656.30
Platinum Price Close 4-Jan-13 : 1,555.20
Change : 101.10 or 6.5%
Palladium Price Close Today : 702.55
Palladium Price Close 4-Jan-13 : 687.80
Change : 14.75 or 2.1%
The silver and GOLD PRICE felt pretty perky today. Silver tucked away 71.3 cents in its purse to close at 3108c. Gold added $8.90 to $1,668.9.
Since I was gone most of last week, today I'm giving y'all a review of the last six day's trading. Notice the gains silver and gold have gotten not clear of the woods yet, but at least free from the witch's house, at least. Stocks continued to rise, while the dollar spread its wings to fly and all the feathers fell off.
The gold and SILVER PRICE are a little out of sync. Today's gold show was welcome, pretty, etc., etc., but settled nothing. It did take the GOLD PRICE over its 20 day moving average ($1,666.92) but not by much -- two bucks. To convince the doubters, gold must climb above the last high at $1,695.40, and before that the early December low at $1,684.10.
On the sunny side, gold has formed a large falling wedge, which generally breaks out to the upside. Also, the spike low to $1,626 on 4 January prompted a big rally, and that day closed $23 higher than that low.
Friday, I should not overlook, it appears the Nice Government Men or other crooks who run the rigged games in Washington and Wall Street, struck about 9:30 a.m. and slammed gold down on the heels of the rally that had taken it to a $1,677.30 close on Thursday. No matter, gold's sinew was proven by today's comeback. It was, however, stopped at $1,675, so twould be nice if gold would oblige us by closing above that mark tomorrow.
The SILVER PRICE is tugging at the leash and longing to run upward. The GOLD/SILVER RATIO fell today to 53.697 from Friday's 54.665, down 1.8%.
There's more, too. Silver closed ABOVE 3100c. High came at 3114.1c, but silver held on to most of its gain. Needs to build on that gain tomorrow.
More witnesses are testifying that the lows on 4 January were the lows for the silver and gold corrections that began in October. But whether they are OR NOT, y'all need to get your heads straight about these corrections, fluctuations, and disappointments: they don't mean a hill of beans to us. All the loss there is IMAGINARY, just like every gain is imaginary until you in fact sell. If you bought silver at 880c in November 2008, you haven't lost a blessed thing in all these fluctuations, just the imaginary sting of marking to market.
What's the point? That we are NOT following a day-trading strategy, so it isn't fit to focus on daily changes. We are following a PRIMARY TREND STRATEGY, which means we climb on to that bull and ride him until he falls over. We don't blow a lot of money by trading in and out, we just hold on to the bull and ride that rascal.
And that also means that about now is the time to buy more. Or you can wait till silver climbs over 3200c and gold above $1,705 and you have more confirmation in hand.
Don't miss what platinum and palladium have done. Platinum rose $27 today to just about close the gap with gold. Y'all remember that the platinum/gold spread went negative back in October 2011, and save for a few weeks it barely poked its head above even, stayed there. Looks like the opportunity to swap gold for platinum that I mentioned several times has just about passed. I would call a move of the platinum/ gold spread to be bullish for all metals.
Palladium has dropped as low at $667 on 8 January, but has climbed back nearly $40. I don't trade palladium because it's too quirky and herky-jerky for my taste, but a close above $728 (early 2012 high) would release palladium from its long imprisonment.
US DOLLAR INDEX has given up all the gains of its rally in 2013's early days, and fallen back -- not quite through -- the downtrend line it broke for that rally. That line stands about 79.40, so a close below that gainsays further rallying. A close below 79 sends the dollar searching for the bottom of the Marianas Trench. Clawed back 12.1 basis points today to close at 79.518.
While the dollar suffers the euro exhilarates. Last week rallied up through its 20 day moving average and gained from $1.3065 to $1.3381. Rose 0.29% today alone. Aiming for $1.3500, maybe $1.3600
Is there no bottom for the yen? Today it made a new low and closed at 111.70 cents/Y100, down another 0.39% today. Everybody in the known world and remote parts of Antarctica must be short the yen. And look -- the Japanese politicians and the Bank of Japan have accomplished their purpose -- running down the yen's exchange rate -- without moving anything but their jaws. Neat, huh?
US$1 =Y89.53=E0.7473=0.032 175 oz. silver= 0.000 599 oz. gold.
Just to catch y'all up, that breakout of the 10 year bond yield has now toughed back to the downtrend line. 'Tis wholly unclear as yet whether this marks the long-awaited bursting of the bond bubble.
STOCKS just keep on a-bubbling and a-bubbling, with ne'er a sign of any economic basis for the mania. Never mind, we live in the Age of Illusions where only appearances count (as opposed to an Age of Allusion, where only literary references count).
Dow today rose 18.89 (0.14%) to climb past the 13,500 milestone and rest at 13,507.32. S&P500 lost 1.37 to $1,470.68. I still expect that both of them will gain more yet, probably hitting or exceeding the old highs. This move will run out of steam by April Fools Day.
Do not miss this fact: the Dow measured either in gold or in silver has fallen in the last 6 trading days. No new highs in store there.
Susan and I were in Chattanooga on Thursday and got to eat with restaurant entrepreneur Lawton Haygood and his wife Karen at his Boathouse restaurant perched alongside the Tennessee River. Most restaurants, even the chi-chi pricey ones, are a disappointment. Food all tastes the same, because the chefs are all cribbing out of the same magazines. But the Boathouse has flavors you won't find anyplace else. One reason is that Lawton invented a wood fired cookstove that allows cooking over a red oak fire -- directly. And wood smoke does something to seafood that carries it smack up to heaven. If y'all EVER get within 200 miles of Chattanooga, don't miss the Boathouse. But if they're too crowded, visit Lawton's other restaurant, Sugar's Ribs, and order the "Romaine is burning" -- half a head of romaine flash cooked over a wood fire, then garnished with pumpkin and sunflower seeds. My, O, my! We ate there, too.
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.