Gold Price Close Today : 1467.40
Change : 13.80 or 0.95%
Silver Price Close Today : 24.122
Change : 0.364 or 1.53%
Gold Silver Ratio Today : 60.832
Change : -0.351 or -0.57%
Silver Gold Ratio Today : 0.01644
Change : 0.000094 or 0.58%
Platinum Price Close Today : 1505.60
Change : 30.40 or 2.06%
Palladium Price Close Today : 698.10
Change : 17.25 or 2.53%
S&P 500 : 1,593.61
Change : 11.37 or 0.72%
Dow In GOLD$ : $208.76
Change : $ 7.50 or 3.73%
Dow in GOLD oz : 10.099
Change : 0.363 or 3.73%
Dow in SILVER oz : 614.33
Change : -4.94 or -0.80%
Dow Industrial : 14,818.75
Change : 106.20 or 0.72%
US Dollar Index : 82.15
Change : -0.560 or -0.68%
The silver and GOLD PRICES mildly surprised me today since I thought they would take a breather after last week's rise. Gold gained $13.80 to $1,467.40, yet managed not to exceed Friday's high. Today's high reached only $1,476.62, lower by $6.02 from Friday's $1,482.64.
Gold's momentum is up, but mercy! Every young pup commodity trader in the universe is waiting to short gold around $1,500, after that terrible break on 12 April. That, and scared longs who will be selling to get out at the highest possible price, are waiting to sell gold at $1,500. That builds a big barrier in front of any advance.
The SILVER PRICE in the same boat, only more so. Gained 36.4 cents today to close Comex at 2412.2c. Put that into perspective: the 20 DMA stands above at 2510c, support/resistance about 2650c. Silver has some tough slogging through deep mire to clear those barriers. However, higher aftermarket prices point to higher prices tomorrow.
But I've been thinking about the silver and gold prices. Fact is, I've been thinking about little else. Ever as bruised and battered as they are, the bull market is not over, and won't be over until the Masters of the Universe now printing money and bailing themselves out finally run out of manipulating-printing-austerity-imposing-bank-bailing room and run their faces slap-dab against the wall. It will happen. I trust arrogance. Arrogance never learns, and it never fails. Y'all keep on buying silver and gold, because every silver and gold purchase is a vote against the Masters of the Universe.
Speaking of that, Bill Rice of Montgomery today wrote me about the "Buy Silver on May 1st" campaign. Y'all have to realize that the currency and financial system all rest on the same foundation: confidence. It is a confidence game, as in "con-game," and we are all being conned. Any effort that encourages people to escape the confidence game and disentangle some resources from that system is okay by me.
Why, that stock market steamroller jes' keeps on a-rollin'! Dow today rose 106.2 (0.72%) on no news worthy of note other than lying government reports and straws in the wind. Never mind, it's enough that it has been rising and will keep rising, Amen. S&P500 gained 0.72% also (11.37) to 1,593.61, and missed its all-time intraday high of a few days ago by a gnat's whisker. It also (ho-hum) closed at another new all time high close.
Yet things are not what they seem. Dow in gold rose 0.36% today to 10.10 oz (G$208.79 gold dollars), and in spite rising stocks, remains in a down trend, now down about 10% from its high on 15 April and closing in on the trend-changing 20 day moving average.
Meanwhile the Dow in Silver also rose 0.45% to 513.21 ounces, yet it, too, remains in a downtrend, revealing stocks losing value against metals.
The euro was helped, momentarily, by Italy's finally forming a government. All things considered, that exactly reverses a rational conclusion. Lo, don't we know that Italian government has taken on so much debt that the economy is sinking, even while Italians are some of the most imaginative and entrepreneurial people on earth? Wouldn't any rational person conclude that the best possible thing that could happen to Italy is for the politicians to wrangle four or five years and never form a government? Shucks, any rational person long ago concluded that the very best thing Italy could do is default on its debt, let the banks take the hit for their own bad judgement, and let the country get back to work with lower taxes.
But there ain't a soul in currency markets or government who thinks that way, so the goofy euro, the liger or geep of currencies, the sterile hybrid of abstractions, rose 0.52% to $1.3100 and leapt in a single bound from its 20 and 50 DMAs to its 62dma. Look for $1.3128 to stop it cold, or, if it sneaks past there, $1.3202, both recent highs.
The grossly oversold yen is trying to rise, but today got feet tangled in its 20 dma (102.08) and ended up down 0.33% at 102.32 cents/Y100.
US Dollar index fell a meaty 56 basis points today or 0.2% to 82.152. Don't count the dollar down until it closes below 82, say, below 81.80.
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.