Tuesday, February 26, 2013

With the Gold Price Fulfilling it's Confirmation Rising Above $1,600 I Bought More Silver and Gold

Gold Price Close Today : 1615.20
Change : 29.00 or 1.83%

Silver Price Close Today : 29.260
Change : 0.273 or 0.94%

Gold Silver Ratio Today : 55.202
Change : 0.481 or 0.88%

Silver Gold Ratio Today : 0.01812
Change : -0.000159 or -0.87%

Platinum Price Close Today : 1615.40
Change : -4.20 or -0.26%

Palladium Price Close Today : 739.40
Change : -9.65 or -1.29%

S&P 500 : 1,496.94
Change : 9.09 or 0.61%

Dow In GOLD$ : $177.90
Change : $ 7.50 or 4.40%

Dow in GOLD oz : 8.606
Change : 0.363 or 4.40%

Dow in SILVER oz : 475.06
Change : -0.47 or -0.10%

Dow Industrial : 13,900.13
Change : 115.96 or 0.84%

US Dollar Index : 81.65
Change : -0.240 or -0.29%

Metals wasted no time today the GOLD PRICE rose $29 (1.83%) to close Comex at $1,615.20. Silver jumped 27.3c (0.94%) to end at 2926 cents.

The GOLD PRICE fulfilled my first hurdle for confirmation by closing above $1,600, and added fifteen bucks for good measure. This is the behavior gold must exhibit to convince watchers that last week was a spike or V-bottom, but it can't stop there. Above it must batter down the $1,630 door, the 20 DMA at $1,637.90, and $1,670. All this ought to happen quickly without any relapse below $1,600.

The SILVER PRICE shows an attack from the bears abut 10:00. It took silver almost two hours to beat that back and recover, but recover it did, climbing above 2900c and over resistance about 2920c.

It's a good step, but silver must keep on rising and shouldn't close again below 2900c.

I bought more silver and gold today. Premium on US 90% has risen to 80c over spot at wholesale, a sign of strength generally. Can hardly find a wholesaler willing to sell 90%, because they're afraid they won't be able to cover it.

Nobody believes an old natural born fool from Tennessee, but I reckon y'all will believe a certified Central Banker wearing a suit and pointy-toe shoes. The Dallas Fed President, Dick Fisher, said in an interview that recent gains in the stock market have not come through improvements in corporate fundamentals or sustainable economic recovery, but instead through the artificial manipulation by the Fed in the markets themselves. Primary cause for the 30% stock rally has been the Fed's continuous inflow of new money.

I bet y'all will believe it now. (I don't really KNOW whether he wears pointy-toed shoes, but I'll bet he does wear a suit. For all I know he wears Birkenstocks, but the prez of the Dallas Fed sure enough is a Central Banker.)

Y'all may wonder what has kept me wrong so long about silver and gold, over and over expecting their correction to end. How about the Fed pouring a zillion dollars into the stock market, sucking up all the money in the world?

Doesn't matter, if it wasn't the Fed, it'd be stray dogs. There's always some distraction to fool you and trick you out of your bull market position in silver and gold.

Stock market did NOT follow through yesterday's first half of a key reversal by closing lower today. Dow gained back 115.96 points (up 0.84%) of the 216.40 it lost yesterday. Must have kept those Nice Government Men up all night just a-buying and a-buying those stock market futures to jack that price up. It did rise back to the inside the Jaws of Death -- waiting for 'em to snap shut again.

Nothing hurts as bad as disappointed hopes. You go to the mailbox day after day, waiting for that notification from the Publishers' Sweepstakes that you've won the life changing lottery, but find there only cobwebs. After a while, you commence to get mad.

I've travelled this road of a Broadening Top or Jaws of Death before. 'Tis the pattern stocks followed at their bull market top in 2000. They fall, but then they rise again, just enough to raise hopes. Then they fall again, to a lower low, disappointing hopes. That continues until at last, they fall out of the Jaws for an undeniable failure. Before that, though, the Jaws feed on disappointed hopes.

Dow rose 115.,96 to close at 13,900.13 but the S&P500 couldn't quite make it over the morale-building 1,500 and gained only 9.09 (0.61%) to close 1,496.94.

I have just enough bad taste and bad manners to flip the page over to the Dow in Gold and Dow in Silver charts and observe that the breakdown there was NOT gainsaid by any bogus rise today. Both are about as broken as a market can be, and I take great heart from that for silver and gold. Those two indicators have been almost infallible over the last 17 years I've been watching them.

US Dollar index backed off 24 basis points (0.31%) today to 81.49. It hit the internal resistance line that marks the shoulder-tops of the head and shoulders it formed from March 2012 - November 2012. Seems to have stopped cold there at 82. RSI is way overbought, which, if the NGM weren't behind the green curtain, would mean it will decline. With them back there working the smoke machine, there's just no telling.

Euro at $1.3060 and Yen at 108.71 were basically flat today. All the talking Nerds -- WHOA!, make that talking heads -- on National Proletarian Radio were frothing and nattering today about how awful and irresponsible it is that the Italians gave a big percentage of their vote to the new block headed by comedian Beppe Grillo. Personally, I think it plainly illustrates how seriously Italians take their politics. Well, no, not that way, but it shows that they understand that politics is nothing but entertainment for us mushrooms anyway, so they might as well be entertained by somebody funny. Hey, if he were alive I'd vote for Jonathan Winters for president in a minute! And he could make George Carlin Chairman of the Fed.

US$1=Y91.99=E0.7657=0.034176 oz Ag=0.006191 oz Au.

Speaking of comedians, today Ben Bernanke told a congressional committee that he believe he is helping the economy by holding down long term interest rates and that ought to be sustained. No, seriously. He said that. Ain't he one heck of a comedian? Yuck, yuck.

On 26 February 1974 Gold hit a new record high of US$188 an ounce in Paris.

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.