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Monday, March 04, 2013

The Silver and Gold Price Marginally Up as Gold Touches September 2011 Downtrend Line

Gold Price Close Today : 1572.10
Change : 0.20 or 0.01%

Silver Price Close Today : 28.457
Change : 0.006 or 0.02%

Gold Silver Ratio Today : 55.245
Change : -0.005 or -0.01%

Silver Gold Ratio Today : 0.01810
Change : 0.000002 or 0.01%

Platinum Price Close Today : 1564.20
Change : -7.30 or -0.46%

Palladium Price Close Today : 712.50
Change : -6.15 or -0.86%

S&P 500 : 1,525.20
Change : 7.00 or 0.46%

Dow In GOLD$ : $185.77
Change : $ 7.50 or 4.21%

Dow in GOLD oz : 8.987
Change : 0.363 or 4.21%

Dow in SILVER oz : 496.46
Change : 1.24 or 0.25%

Dow Industrial : 14,127.82
Change : 38.16 or 0.27%

US Dollar Index : 82.21
Change : -0.087 or -0.11%

The GOLD PRICE rose twenty cents (20c) to $1,572.10 while silver raged up 6/10 (six-tenths) of a cent to 2845.7c. I reckon everybody's so dispirited in the silver and gold markets they just didn't much bother trading today. Silver's range was 33 cents, from 2877c to 2844c. Gold ranged only $10 from $,1569.80 to $1,579.56.

Looks like we've run out of sellers.

The GOLD PRICE has touched back to its September 2011 downtrend line with Friday's low at $1,564. That earlier intraday low on 21 February fell at $1,554.30.

The SILVER PRICE, on the other hand, on Friday exceeded its earlier low for a new one at 2796.2c. This remains above (at) the downtrend channel line.

I don't want to rely on conspiracy to explain every-thing, but why are so many clever analysts throwing up their hands and confessing these markets keep fooling them? And why do so many establishment types want suddenly to publish articles with headlines like "Dollar is king again" or "Gold going to $1,200"?

Folks, they're harvesting us.

But back to silver and gold. Until contradicted, I will continue to assume we saw the bottoms last week. Of course that needs to be confirmed. Remember, the worse the reaction, the higher the rally following. There is one whopper of a rally coming after this. And if you just want to be harvested, listen to all those folks telling you to dump silver and gold and buy stocks.

Keep on watching silver and gold. Buy some if the waiting gets on your nerves. Sentiment is so widely negative that we must be near a historic bottom.

I am so thankful that we own the best congress money can buy. Well, somebody owns it. But one alert Congress-thing, Maxine Waters of California, alerted the entire country with a devastating result of sequestration. She warned that 170 MILLION jobs could be lost to sequestration.

This is terrifying, especially when you learn that only 134 million people are working in the US. Sequester will be so catastrophic that they will have to hire 40 million people and then FIRE them to meet her projected job loss.

I couldn't make this stuff up if I tried.

By the way, have y'all been having trouble understanding what sequestration is? Bernard Obama is threatening to lay of millions and maybe even open the prisons (I made that up. He hasn't said that yet, but give him 48 hours), but what's it really all about?

Reducing federal government spending by an across the board 2% (two percent). It doesn't actually reduce government spending. After adjusting for inflation and exempting defense and other spending, the CBO estimates that even with sequestration, spending will increase by $110 billion over the next 10 years that sequestration will supposedly cut $850 billion.

Meanwhile, Ben the Beneficent is PRINTING $85 billion a month, while these folks are arguing and threatening to shut down the Yankee government over cutting $85 billion A YEAR.

Y'all, we beat the Italians to it. We have nothing but comedians in office already.

Stocks reached their highest price since October 2007 today at 14,130 intraday. Dow closed near that high at 14,127.82, up 38.16 (0.27%). S&P500 rose 7.00 (0.46%) to 1,525.20. High closes in 2007 were 1,565.15 and 14,164.53.

And I anticipate higher closes yet this week.

Both the Dow and S&P500 continue to trade in a megaphone or Jaws of Death pattern. Dow today closed at the top Jaw, but the S&P has been falling off for the last two weeks. It did NOT make a new high today as high as the previous 1,530.98 intraday high posted on 20 February AND 19 February. It's an odd divergence, no more than a cloud the size of a man's hand on the horizon, but still there.

And how about that Nasdaq 100? Of the major indices, it alone has not joined in the general jubilation. It's September high at 2,878.38 has remained safe from any challenge. Today it closed at 2,759.53 and has been dropping since 19 February, too.

Back in May 83 pretty well stopped the US dollar index' advance. It went higher later, to 84.10 in July, but when it fell below 83 and tried to recover, 83 stopped it in August, so there's some kind of Kryptonite there at 83.

Today the dollar index lost 0.11% to close down 8.7 basis points at 82.207. Not plain yet whether that's the rally's limit, but odds remain it will rise more, since a trend in force remains in force until violated.

The euro rose 0.06% today to $1.3027, but it don't amount to a hill of beans. It has broken support and appears headed for $1.2600. Also the hot money is piling on the shorts. Then, too, a financial earthquake could happen any time in Europe. Present situation is like the Phony War ("Sitzkrieg") that reigned in the short time after Hitler conquered Poland( Sept. 1939) then invaded France and Belgium in May 1940. 'Twas hard to believe there really was a war, until the Panzers began rolling over Belgium, and didn't stop till they reached Dunkirk.

Yen rose a piddling 0.15% to 106.9c/Y100. Sitting right below the 20 day moving average.

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

- Franklin Sanders, The Moneychanger
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© 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.