Thursday, March 07, 2013

The Silver and Gold Price Formed Even Sided Triangles Which Way Will they Resolve?

Gold Price Close Today : 1574.80
Change : 0.20 or 0.01%

Silver Price Close Today : 28.677
Change : 0.007 or 0.02%

Gold Silver Ratio Today : 54.915
Change : -0.006 or -0.01%

Silver Gold Ratio Today : 0.01821
Change : 0.000002 or 0.01%

Platinum Price Close Today : 1593.10
Change : 15.30 or 0.97%

Palladium Price Close Today : 757.05
Change : 19.00 or 2.57%

S&P 500 : 1,544.26
Change : 2.80 or 0.18%

Dow In GOLD$ : $188.17
Change : $ 7.50 or 4.15%

Dow in GOLD oz : 9.103
Change : 0.363 or 4.15%

Dow in SILVER oz : 499.87
Change : 1.23 or 0.25%

Dow Industrial : 14,334.86
Change : 38.62 or 0.27%

US Dollar Index : 82.09
Change : -0.590 or -0.71%

The silver and GOLD PRICE remain in the same range, although silver is pushing the upper boundary. Get this: yesterday silver rose 19.7 cents, today 7/10 of one cent. Gold yesterday was unchanged, today rose 20 cents. They closed at 2876.7 and $1,574.80.

I know I said I wouldn't send a commentary until Monday, but I can't resist. Markets smell too strongly of overripe mackerel.

Folks, this ain't right. Markets just don't go dead for four days. I point no fingers, entertain no theories, just observe that nature behaveth not this way. Soon both will make a move, up or down. Both have formed an even-sided triangle, which can resolve toward the sky or the earth.

The gold and SILVER PRICE are likely to return to their established support at $1,525 and 2610c before this ends. However, "likely" means "what one expects most of the time," and markets specialize in doing precisely what we do NOT expect. Surprise is their middle name. While that means they might turn around from here, it also means they might not hold at those resistance points.

But here's what I want y'all to take home. If GOLD gets to $1,555 or below but not below $1,526, BUY IT. If silver drops below 2800 cents, buy it. Buy it all the way down to 2600 cents.

Since everyone in the world who wants to short gold or silver probably already has, the only surprise would be an upside move.

Contributing to this suspicion are the Dow in Silver and Dow in Gold. That latter closed today at 9.10 oz, right at my 9.12 oz target. Both charts have formed rising wedges, which usually but not always break out downside, almost as reliably as an Amtrak schedule.

Any upside breakout would have to carry gold ABOVE $1530 and silver over 3050c before it will prove a bottom and a turnaround.

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.