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Tuesday, May 07, 2013

Silver and Gold Prices are Rebuilding I'm Looking to Buy

Gold Price Close Today : 1449.00
Change : -19.10 or -1.30%

Silver Price Close Today : 23.771
Change : -0.147 or -0.61%

Gold Silver Ratio Today : 60.957
Change : -0.424 or -0.69%

Silver Gold Ratio Today : 0.01641
Change : 0.000113 or 0.70%

Platinum Price Close Today : 1481.70
Change : -26.50 or -1.76%

Palladium Price Close Today : 679.50
Change : -16.50 or -2.37%

S&P 500 : 1,625.90
Change : 8.46 or 0.52%

Dow In GOLD$ : $214.80
Change : $ 7.50 or 3.62%

Dow in GOLD oz : 10.391
Change : 0.363 or 3.62%

Dow in SILVER oz : 633.39
Change : 7.54 or 1.21%

Dow Industrial : 15,056.20
Change : 87.31 or 0.58%

US Dollar Index : 82.31
Change : 0.252 or 0.31%

Silver and GOLD PRICES fell today. Gold stumbled $19.10 (1.3%) to close at $1,449, but silver inched back only 0.6% (14.7 cents) to 2377.1 cents.

Because that $19.10 feels like such a big drop, I had to stare at the chart a while. Yes, gold did drop through its uptrend line, but not so far and did not close below the 20 DMA ($1,447.93).

Gold appears to be slowly rebuilding. It will be interesting to see what it will do on this reaction. Support awaits at $1,425, more at $1,400. I've about decided we won't see a lower low. More likely seems a higher low, maybe even to $1,350. I'm looking to buy.

SILVER PRICE tripped a bit, but remained within its ascending channel and above the uptrend line. Low came at 2350c, so there were enough buyers there to stop silver's fall. Silver is setting up differently to gold. Let's see if it drops out of that channel tomorrow. If not, I'll have to think seriously about buying hard.

Silver and GOLD PRICES are working their way toward a resolution and upside reversal. Seasonally we might have already seen the low, or it could stretch into June. Just remain patient, keep your eyes on the horizon.

Sorry I missed seeing y'all yesterday, but I had to drive up to Nashville with my son to see about a stock transaction. Livestock, that is. We needed a new Dorper ram. Found not one but two young ones with good genes.

Have y'all noticed that nothing much happens any more? In spite of the Internet, etc., the stuff that passes for news is just silly. After I lived in Europe and returned to the US I realized how vapid the US press was, with virtually every paper sharing the same opinion. No genuine discussion. But with the Internet, the news either puts you to sleep or tries to make you a Peeping Tom. What if I don't want to be a peeping Tom?

Back to markets today. Schlaraffenland draws ever nearer in the stock market. Yet again the Dow and S&P500 made new all time highs today. Dow gained 87.31 (0.58%) to 15,056.20, while the S&P500 clambered 8.46 (0.52%) to 1,652.96. Be still, my beating heart.

This isn't over yet, and can rise substantially higher.

Dow in Gold has risen above its downtrend line and above its 20 DMA (now 10.21 oz), so I reckon we'll see higher numbers there. Closed today at 10.39 oz (G$214.78 gold dollars), up 2.01%, thanks largely to gold's fall.

Oddly enough, the Dow in Silver has only BARELY closed above its downtrend line. Barely. Ended today at 632.45 oz (up 1.42%). Remains above 20 DMA (613.19). Dow/Silver is tapping at its long term (since 2001) downtrend line. Gold, too, hit that long term downtrend line, and bounced down.

Yes, this is critical. Should they break out 3% above the downtrend, it might mean the long term trend has turned around. On the other hand, both are more overbought than at any time in the last 12 years.

Yesterday and today the US dollar index kept pushing on the egg-shell rounding top. Rose 25.2 basis points yesterday, then backed off 4.2 today to end at 82.295. It looks like this move will hatch with an upside breakout.

The yen, which has become more jimmied than a New York election and more engaging than timing a glacier race, rose 0.35% to 101.03 cents/Y100. Nipponese Nice Government Men (NNGM) are keeping it low and flat.

The euro, the Frankenstein currency, has come to life again. It's above its 20 DMA ($1.3078) and rose today 0.35% to $1.3077. Last week it met Black Mold and Kryptonite at $1.3243 and tumbled all week. Ain't much of an uptrend in the last two months, but is more up than down. Stay away.

On 7 May 1926 a US report showed that one-third of the nation's exports were motors. Today, 9/10 of the nation's exports are dollars, electronic or paper. We don't make anything anymore except fiat money. Shucks, don't make no difference. We're all gonna get rich changing sheets and waiting tables. That's globalism.

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.