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Tuesday, April 02, 2013

With the Gold Price Down 1.6% and the Gold/Silver Ratio Above 57 Swap Gold for Silver Now

Gold Price Close Today : 1575.10
Change : -24.90 or -1.56%

Silver Price Close Today : 27.217
Change : -0.696 or -2.49%

Gold Silver Ratio Today : 57.872
Change : 0.551 or 0.96%

Silver Gold Ratio Today : 0.01728
Change : -0.000166 or -0.95%

Platinum Price Close Today : 1571.80
Change : -24.60 or -1.54%

Palladium Price Close Today : 768.80
Change : -14.55 or -1.86%

S&P 500 : 1,570.25
Change : 8.08 or 0.52%

Dow In GOLD$ : $192.43
Change : $ 7.50 or 4.06%

Dow in GOLD oz : 9.309
Change : 0.363 or 4.06%

Dow in SILVER oz : 538.71
Change : 16.63 or 3.18%

Dow Industrial : 14,662.01
Change : 89.16 or 0.61%

US Dollar Index : 82.90
Change : 0.164 or 0.20%

Today the GOLD PRICE lost $24.90 (1.6%) to close Comex at $1,575.10. Silver gave up 69.6 (2.4%) cents to 2721.7c.

Silver has been far more oversold than gold -- more than any time except one since 2008 on the RSI. Gold is more oversold than it was at the bottom of the 2008 Panic, by the same measure.

Absent any seen cause, the silver and GOLD PRICE plummeted today. Yes, you may have heard this from me before, but you're going to hear it again today: this ought to be their LAST spike down.

Truth is, if these support levels that have caught them three (or call it, four) times already cannot catch them this time, silver will drop to 1950 cents and gold to $1,250. That's not what I expect, only what the chart shows.

Here's what I expect: somewhere between here and 2650 cents, silver will stop. Gold will find solid footing around $1,550 - $1,530.

So you have to be ready for a surprise, like, no more downside. Like a turnaround in two or three days at most. And while the only thing you want to do, thinking about all that gold and silver you already own, is reach out and puke in your wastebasket, you got to get plumb mad-dog mean and kill that fear and buy more.

No post mortem is satisfying, but we still do them. Gold was rocking along above $1,595 today when New York opened and SOMEbody entered a lot of sell orders. From 8:30 to 10:15, gold fell to $1,580. from 11 to 1:30, another $5. Low came at $1,574.10, and it closed only a dollar above that.

The SILVER PRICE followed the same pattern. Comex opened and it fell from 2800c nearly to 2740c by 11:00, and kept sliding the rest of the day. Low hit 2719c, 2.7c below the close.

For what it's worth, I note in passing that the last three lows by gold and 3 of the last 4 by silver have endured only one, or at most, two days.

Buck up! Silver and gold remain in a primary uptrend and off this base will launch a rally that will lead to gains HIGHER than we have yet seen.

Y'all's job today is to check whether you have any more gold to swap for silver. The GOLD/SILVER RATIO above 57 yesterday suggests it has hit the top. It broke out of a rising wedge in one last thrust up headed toward resistance at 60:1 and filling in a little gap at 56.50 - 57 left from August 2012. Relative strength Index is also way overbought, pointing to a top. It might climb as high as 60, but will do that fast

As strongly as I ever suggest anything, I suggest you swap gold for silver here. Swap for one ounce silver rounds (now 0.55 cents over spot) or 100 ounce bars (now at 40 cents over spot) because the US 90% silver coin carries way too high a premium ($1.85 over spot), highest since the 2008 panic and before that since the Y2K scare.

On swap trades we charge a commission on ONLY ONE side of the trade, the side we are buying. The silver we swap at our wholesale cost. Call (888) 218-9226 mention goldprice.org when you call.

Why are we doing this? Because I am expecting the ratio to drop from 57:1 down to 30:1. For example's sake but not counting transaction costs, if your one ounce of gold buys 57 ounces of silver today, when the ratio drops to 30:1, your 57 ounces of silver will buy 1.900 ounces of gold. Naturally this comes with no guarantee, as life comes with no guarantee, but it aligns you with the primary trend for the GOLD/SILVER RATIO, which is DOWN.

Why do bullies pick on cowards? Because no matter how much they punch, insult, and shame them, cowards won't punch back. They just take it.

All bullies are tyrants, and all tyrants are arrogant. Our reigning tyrants, like Ben Bernanke and Mario Draghi, believe they are Masters of the Universe because no matter how often the punch, insult, and rob their docile victims in America and Europe, the victims just keep on taking it. The tyrants are convinced they can steal from y'all all they want, print money till a pack of gum costs $9,000, and you all will never punch back, never object you'll just wipe the gobs of spit off your face and call it dew And if you dare to object, dare to take to the streets, they'll turn their police thugs on you and teach you not to punch back at bullies.

One of these days y'all will catch on, and y'all will pound those bullies into the pavement. I just want to be a fly on the wall, watching, when y'all finally admit it's spit.

Stocks today made another all-time high. Dow closed 14,662.01, up 89.16 (0.61%). S&P500 ended the day at 1,570.25, higher by 8.08 (0.52%). Still more upside in front of them.

Dow in Gold gapped up to close at 9.30 oz (G$192.25 gold dollars). That moves the next target up to 10 oz. (G$206.72). Unless it reverses tomorrow, it will rise that much higher.

Dow in Silver also gapped up, making good on yesterday's warning. Closed up 3.42% (combine a rise in stocks with a fall in silver and the rise bulges) at 538.65 oz. If it doesn't stop here, next candidate is 580 oz - 600 oz. Again, unless it reverses immediately, it will rise to that higher level. Dow in Silver is monstrously overbought -- that can't last much longer.

US dollar index rose 16.4 basis points (0.21%) to end the day at 82.902. You know, even at the Ugly Boys School there is one ugly boy who isn't quite as ugly as the rest. That's the US dollar today. Plug ugly as it is, the dollar's not as ugly as the others. If the dollar index can climb significantly over 83.50, it will run for 84 and higher.

Bear in mind always that a surprise party can happen any morning you turn on the lights. Panic could break out over Italian banks or Spanish banks or Andorran banks or Lichtensteiner banks, sinking the euro and flinging the dollar into the air.

Then there's the yen. Here the Masters of the Universe have accomplished the remarkable: without lifting a pinkie even to flip on the presses, merely with the threat to drive the yen down from 128 cents/Y100 in October to 107.07 today. That's some jawboning that would turn Samson green with envy.

Meanwhile the British pound sterling (which hasn't weighed a pound for centuries and has no sterling behind it) fell in February out of a trading range that has supported it since 2010, and promises upon its solemn oath to drop lower.

On 2 April 1792 the First US congress passed the Coinage Act. Based on the average weights of Spanish milled dollars then circulating, they made the silver dollar the standard coin containing 371-1/4 grains of fine silver, and halves, quarters, and "dismes" at exactly half, a fourth, and a tenth the silver content. The standard coin was called a "dollar or unit."

The act authorized gold coins but they were not denominated in dollars, only "valued in dollars." An Eagle (valued at $10), with 0.5156 troy ounce of gold, a half eagle ($5) with 0.2578 oz, and a quarter eagle with 0.1289 oz.

Cents of copper weighed 0.55 oz and there were half cents, too.

So the ratio was 1 gold oz = 15 silver oz = 825 oz copper. Most important was free coinage: anyone could take bullion to the mint and have it coined for free.

What happened? The nation that had been wracked by paper currencies flourished overnight.

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.