Thursday, February 28, 2013

The Gold Price Rose $5.30 this Week

Gold Price Close Today : 1,577.70
Gold Price Close 22-Feb-13 : 1,572.40
Change : 5.30 or 0.3%

Silver Price Close Today : 28.405
Silver Price Close 22-Feb-13 : 28.46
Change : -0.065 or -0.2%

Gold Silver Ratio Today : 55.563
Gold Silver Ratio 22-Feb-13 : 55.249
Change : 0.31 or 0.6%

Silver Gold Ratio : 0.01800
Silver Gold Ratio 22-Feb-13 : 0.01810
Change : -0.00010 or -0.6%

Dow in Gold Dollars : $ 184.98
Dow in Gold Dollars 22-Feb-13 : $ 184.06
Change : $0.92 or 0.5%

Dow in Gold Ounces : 8.948
Dow in Gold Ounces 22-Feb-13 : 8.904
Change : 0.04 or 0.5%

Dow in Silver Ounces : 497.20
Dow in Silver Ounces 22-Feb-13 : 491.94
Change : 5.26 or 1.1%

Dow Industrial : 14,117.88
Dow Industrial 22-Feb-13 : 14,000.57
Change : 117.31 or 0.8%

S&P 500 : 1,522.15
S&P 500 22-Feb-13 : 1,515.60
Change : 6.55 or 0.4%

US Dollar Index : 81.907
US Dollar Index 22-Feb-13 : 80.470
Change : 1.437 or 1.8%

Platinum Price Close Today : 1,582.40
Platinum Price Close 22-Feb-13 : 1,606.30
Change : -23.90 or -1.5%

Palladium Price Close Today : 732.60
Palladium Price Close 22-Feb-13 : 735.30
Change : -2.70 or -0.4%

Y'all are tired of the silver and GOLD PRICE falling, and so am I, but it only SEEMS that they've been falling forever. Gold hit a low last Friday at $1,554.30, made a key reversal, and climbed 4 days. Today and yesterday it backed off. Might back off more, but declines yesterday and today were mere normal trading. Gold actually rose $5.30 for the week, and silver lost only 6.5 cents.

The GOLD PRICE fell $17.50 today to $1,577.70. Silver lost 54.8 cents to close 2839.5c.

I'd be grateful if gold would move no lower than today's intraday low at $1,574.90. That would keep it inside its old lower channel line. But that's not as critical for gold as holding above $1,554.30. And y'all will hardly credit this, but it appears the MACD indicator has turned up.

The SILVER PRICE chart looks like gold, a little correction after four day's rise. MACD hasn't as obviously turned up, but is curving. Total risk is down to 2610c to 2610c at most, the support line so long established.

Y'all don't realize that the Establishment is harvesting you. When Goldman- Sachs puts out a report that gold will drop to $1,200, you think they're doing that out of the goodness of their tiny, leaden hearts which when hot are a touch below absolute zero? They are mere hatchetmen and bagmen for the government, floating propaganda to scare you out of silver and gold. Of course, so is Ben Bernanke.

I'm telling y'all, it's time to get mean: plumb, mad-dog mean, if you expect to live and to win.

R.L. Dabney wrote that the Scotch-Irish people, when they are right, are the most inflexible and stubborn people on earth, but when they are wrong are the most mulish and pig-headed. My people are Scotch-Irish so far back that memory runneth not to the contrary, bred to fight for 1,000 years.

When the Y2K threat passed all the neophytes who had bought gold and silver expecting the world to end called up wanting to sell their metals. Knowing that the stock bull market was drawing to a close and suspecting/watching the Dow in Gold roll over, anticipating a new metals bull market, I pleaded with them not to sell (what the lawyers call "an admission against interest"). Some listened, some didn't. How that turned out for people who had bought silver and gold at $5 and $250 - $300 and didn't sell, y'all can judge.

I tell y'all that story to point out that I have been here, under this same artillery fire before. And in 2008 when all and sundry were diving into dollars, I kept telling them to stick with their silver and gold and buy more.

Now pundits are punditting that the dollar will was strong and well-muscled for decades to come, and a new bull market in stocks is about to begin. Right, after they've been in a bear market only 13 years.

Sorry, I'm fixing to become the most mulish and pig-headed Scotch-Irishman (or inflexible and stubborn) you ever met. I don't buy any of the government hogwash about the recovering economy, recovering banks, or the Fed being wiser than God having more money, or stocks launching

a new bull market. I don't buy that the piddling 500% - 600% rise in silver and gold over a mere 12 years fulfills a bull market. I don't buy that Europe will somehow muddle though, and that the Japanese with 250% of their GDP in debt will make itself rich by depreciating the yen.

The causes haven't changed, so the effects will not change.

As that great Scotch-Irishman Outlaw Josey Wales said, "When things look bad and it looks like you're not gonna make it, then you gotta get mean. I mean plumb, mad-dog mean. Cause if you lose your head and you give up, then you neither live nor win. That's just the way it is."

A reader wrote to ask me what events would make me sell silver and gold. Here they are, in order: (1) The US government abolishes the Federal Reserve system and returns to a constitutional gold and silver coin standard. (2) The US government ceases to intervene in the economy. (3) Gold drops below $1,000. (4) Frogs grow wings so they won't bump their little bottoms when they jump.

Y'all just put yourself in the place of the government managers like Bernanke. Every once in a while you have to engineer a BIG scare to keep your victims in the dollar and out of gold. One thing that reveals the dollar's true condition is a rising gold price, so he just has to fight that.

Today I have to leave early to attend a funeral in Memphis tomorrow, so the prices are closes for silver and gold only, not everything else. But they'll be close. And I won't publish a commentary tomorrow.

Stocks reached a new high for the move at 14,149.15 but are trading now at 14,117.88, up 42.51 (0.3%). S&P500 stands at 1,522.15, up 6.16 or 0.41%. Dow punched through the upper jaw of that broadening top, but that often happens as the megaphone mouth widens out. I have been telling y'all to expect a new all time NOMINAL high in stocks, so this shouldn't surprise even a TSA agent or central bank president.

Dollar spurted today, up 33.7 basis points (0.43%) to 81.907. Surely has 82 targeted, maybe 83. Deflation scare/strong dollar scare time.

Euro sank back again today, losing 0.56% to $1.3058. Yen also sank 0.46% to 107.90 cents/Y100. Remains, however, above the 107.51 twenty day moving average.

Y'all enjoy your weekend!

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.