Monday, March 25, 2013

Gold Price Lost $1.60 Closing at $1,604.50 Silver Rose 11.9 Cents

Gold Price Close Today : 1604.50
Change : -1.60 or -0.10%

Silver Price Close Today : 28.785
Change : 0.119 or 0.42%

Gold Silver Ratio Today : 55.741
Change : -0.287 or -0.51%

Silver Gold Ratio Today : 0.01794
Change : 0.000092 or 0.52%

Platinum Price Close Today : 1582.90
Change : 1.30 or 0.08%

Palladium Price Close Today : 755.55
Change : -4.20 or -0.55%

S&P 500 : 1,551.69
Change : -5.20 or -0.33%

Dow In GOLD$ : $186.14
Change : $ 7.50 or 4.20%

Dow in GOLD oz : 9.005
Change : 0.363 or 4.20%

Dow in SILVER oz : 501.92
Change : -4.33 or -0.85%

Dow Industrial : 14,447.75
Change : -64.28 or -0.44%

US Dollar Index : 82.89
Change : 0.658 or 0.80%

The GOLD PRICE broke out of its pennant 10 days ago. Today it traded as low as its 20 DMA, but bounced smartly off that. Somebody remains ready to buy below $1,600, anywhere.

Since late February the GOLD PRICE has traded from $1,619.70 to $1,560.40. Until it punches through $1,620 above or through $1,560 below, the trading is mostly noise.

When the SILVER PRICE popped up above resistance last Thursday, I thought we had a winner. Next day, though, somebody sat on it hard, driving it to the bottom of its 2950c - 2850c range. When a market is range trading, you can only watch and either buy the upside breakout or watch a downside breakout for a place to buy. Inside the range there's nothing to do but sit.

Today silver rose 11.9 cents to 2878.5c. Gold lost $1.60 to $1,604.50. What's interesting is that gold was driven down to a $1,591.38 low today about the time Comex opened (surprise!) but refused to remain below $1,600.

But how long can you wait? Risk from here for gold reaches to $1,530 at most, about 4.6% below here. But Cyprus has me thinking how much I prefer gold or silver in hand, even if I paid too much for it too soon, to electrons in a bank. But then, I am only a suspicious natural born fool from Tennessee.

The "solution" to the Cyprus crisis, like all the rest of the "solutions," is wet cardboard screen. Poke your finger at it and it goes right through.

Under the plan the banks/government would steal only the "rich" people's money. The two biggest banks will be closed, one temporarily, one permanently. Depositors with more than E130,000 ($167,000) will "face significant losses." Since the plan must raise E4.2 billion, I reckon they'll lose all of it. Meantime, their accounts are frozen until it can be sorted out. Central bank has limited cash withdrawals even from ATMs, to E100 (US$130)

As I have already noted, this may be the shot at the Archduke in Sarajevo. Certainly, it changes everything, because to bail out the banks, instead of bailing them out indirectly by stealing the money from taxpayers, now they will bail them out directly, by stealing from the depositors.

If you think your own government and the banks won't do the same to you in America, you haven't got the brains God gave a screwdriver.

If you want to find out roughly how insolvent your own bank is, go to and find your bank. Eventually you'll get a graph that compares your bank's Troubled Asset Ratio with the national median Whoa, there! "Median," not "average." Median is the dead middle when you line up every bank. If your bank's Troubled Asset Ratio (loans that aren't paying) is lots higher than the national median, or higher than other banks in your area, you might want to think about changing banks, whether they'll give you a new toaster or not.

Stock markets didn't buy into the latest Cyprus bailout. Dow lost 64,28 (0.44%) to 14,447.75 while the S&P500 lost 5.2 (0.33%) to 1,551.65.

This leaves stocks trapped in sideways range the last seven trading days while gravity remains merciless. Stocks may rise higher, but this will end badly, probably before year-end at latest.

The Dow in Gold fell today, although it popped up early in the day. Closed at 9.00 oz (G$186.05), barely below the 20 DMA at 9.01 oz.

Dow in Silver has not rolled over as dramatically, but is stalled. Closed today at 502.71 oz, down 0.49%. It's fixing to fall.

Cyprus bailout didn't help the euro any more than it helped Cypriot banks. Euro fell 1.08%, and lodged beneath its 200 Day Moving Average ($1.2861) at $1.2853. The plunge hasn't ended yet and won't before $1.2625, most likely.

Yen benefited, rose 0.34% to 106.20 cents/Y100. That is above the 20 DMA (105.74) and right at resistance. But who would buy a currency that has announced a deliberate depreciation?

Uptrend in the US dollar index is being kept alive only by the Cyprus crisis. It's only distinction lies in being the prettiest corpse in the morgue.

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.