Wednesday, February 27, 2013

The Gold Price Posted it's Low Last Week and Must Now Conquer $1,620

Gold Price Close Today : 1595.20
Change : -19.80 or -1.23%

Silver Price Close Today : 28.943
Change : -0.317 or -1.08%

Gold Silver Ratio Today : 55.115
Change : -0.080 or -0.14%

Silver Gold Ratio Today : 0.01814
Change : 0.000026 or 0.14%

Platinum Price Close Today : 1599.00
Change : -16.40 or -1.02%

Palladium Price Close Today : 743.15
Change : 3.75 or 0.51%

S&P 500 : 1,515.99
Change : 19.05 or 1.27%

Dow In GOLD$ : $182.40
Change : $ 7.50 or 4.29%

Dow in GOLD oz : 8.824
Change : 0.363 or 4.29%

Dow in SILVER oz : 486.31
Change : 11.26 or 2.37%

Dow Industrial : 14,075.37
Change : 175.24 or 1.26%

US Dollar Index : 81.54
Change : -0.316 or -0.39%

The silver and GOLD PRICE dropped today, but hold on a second and think. They had risen four day's running, so a little breather is in order. Silver lost 31.7 cents to 2894.3c and gold fell $19.80 to $1,595.20. This hasn't damaged the uptrend, but might mean that we're in for more sideways frustration. Lines are clearly drawn: silver has to climb over 2950, then 3050c to rally.

The GOLD PRICE must conquer $1,620 - $1,630.

I have to stick by my tentative conclusion, iffy as it might be: the gold and SILVER PRICE made their lows last week. Unless they fall lower than those in daily trading, they will continue to rally.

Yep, I'm biting my nails, too, but this will all clear up pretty soon. Once those stocks break, those nice government men and hedge funds will be skipping and hopping. So will silver and gold.

A reader asked me what the inflation adjusted value of that 26 Feb 1974 $188 gold is: by the under-stated US government inflation adjustment, it's about 878.15 2013 dollars.

There's an old proverb that says the poor man wastes his money bribing the rich. Way it usually works is the rich man gets the poor man's labor for nothing by promising that if he just helps him for free this time, he'll remember him when the next big deal comes around.

But it never comes.

A lot of employers jerk their employees around this way, promising big things in the future while taking away things in the present. The rich man already got me a number of years ago, and taught me never to bribe the rich. I don't remember much poetry, except these lines from Omar Khayyam, "Ahh, take the cash, and let the credit go/Nor heed the rumble of a distant drum!"

Y'all can turn your noses up at me if you like, but I have to warn y'all: that stock market isn't strong, it's blowing off. Erratic trading accompanies blow-off tops. On Friday the Dow gained 119.95, on Monday it lost 216.40, on Wednesday it gained 115.96, and today it gained 175.24 (1.26%) to close at 14,075.37, a new high close for the move.

See that the these moves are slinging the Dow from one side of the Jaws of Death to the other.

The broadening top pattern is not a continuation pattern but a top. The hot and cold uncertainty may send the Dow higher, even to the 2007 high at 14,163, but these high stock prices are not long for this world.

Dow in gold and Dow in silver both bounced up today, but to lower highs. Hmmm -- lower lows and lower highs -- Doesn't that make a downtrend?

Stocks are rolling over, count on it.

Euro rose 0.54% today to $1.3132. However, 'tis only bouncing off an internal resistance line about $1.3040. Headed lower.

Yen lost 0.25% today to 108.40. Nothing technical yet to point to a turn around other than crossing above the 107.61 20 DMA day before yesterday. 50 DMA is above at 111.71c/Y100. It's so politically determined that I wouldn't trade it with y'all's money.

It's an odd thing to me that in an age when more than half the TV shows are about adultery that anybody would get too exercised about adulterating food (merely another brand of adultery) but behold! the uproar in the EU over horse meat in their wieners and meatballs. The goofiest face of this are the calls from the inveterate and unable- ever-to-learn-anything socialists for more government regulation. England has some of the world's tightest meat regulation. Problem is, of course, CONCENTRATION in the food industry. Would you rather buy beef from your local butcher who looks you in the eye, or mystery meat from some far-off corporation? Right, the cure is to know your farmer and buy local.

Forget the meatballs, I'm giving up sushi. A group named Oceana uncovered massive fraud in mislabeled fish. Seems that out of 1200 samples, 1/3 were mislabeled. What was swimming as tuna was in fact escalor, that will give you gastro-intestinal distress you don't want to hear described. Oceana did not find a single sushi bar without mislabeled fish.

I'm telling y'all, the only way to protect yourself from these adulterers and dangerous processed food is to buy local and know your farmer.

But shucks, I'm only a natural born fool from Tennessee. Y'all don't pay me no mind, and let me know how y'all like that escolar -- whoops! "Tuna."

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

- Franklin Sanders, The Moneychanger
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.