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Wednesday, May 08, 2013

Silver and Gold Prices Bounded Up Gold Closed at $1,473.90

Gold Price Close Today : 1473.90
Change : 24.90 or 1.72%

Silver Price Close Today : 23.892
Change : 0.121 or 0.51%

Gold Silver Ratio Today : 61.690
Change : 0.733 or 1.20%

Silver Gold Ratio Today : 0.01621
Change : -0.000195 or -1.19%

Platinum Price Close Today : 1505.40
Change : -26.50 or -1.73%

Palladium Price Close Today : 697.15
Change : -16.50 or -2.31%

S&P 500 : 1,632.69
Change : 6.73 or 0.41%

Dow In GOLD$ : $211.85
Change : $ (2.94) or -1.37%

Dow in GOLD oz : 10.248
Change : -0.142 or -1.37%

Dow in SILVER oz : 632.23
Change : -1.16 or -0.18%

Dow Industrial : 15,105.12
Change : 48.92 or 0.32%

US Dollar Index : 81.95
Change : -0.336 or -0.41%

Silver and GOLD PRICES bounded up, gold up $24.90 today and closed $1,473.90 and silver rose 12.1 cents to end at 2389.2.

About 7:00 a.m. gold looked ready to sleep the day away beneath $1,455, but from 7:30 to 8:30 rose to $1,468, then boosted again after 2:00. Silver experienced a basically sidewise day between 2371.8 and 2402.7c. Range for both silver and gold prices was raised today, but not widened much.

Gold posted the first half of a key reversal (higher high and higher close) but must follow that tomorrow with another higher close. Today's rally-ette brought gold price up to close at the uptrend line it fell through yesterday, but not above that uptrend line. This is lively, this is respectable, this encourageth, but this ain't a close above that line.

SILVER and gold are like two drunks with really great voices singing just a little off key. They're out of synch. Silver yesterday did no more than fall to (not through) its downtrend line, and today closed just below its 20 dma (2095c). It remains in an uptrend, slow but up. It acts as if it wants to push gold higher.

Leery I have been and leery I remain, although I expect a strong rally later this year. Yet evidence still is wanting to prove that we have seen the low. I want to see a reaction test the silver and gold prices strength.

Still time to swap gold for silver, by the way.

What an impossible job, forecasting the winner in a race for high school homecoming king and queen! After all, it's not like the offices require any sort of skills or qualifications, it's just a question of whom the mob likes the most.

Trying to forecast currency exchange rates is a lot like that. None of them have any qualifications that will do anything but make the hair stand on end all over your scalp. None is particularly "better" than the other, so the exchange rate of numerous worthless items among each other is -- infinity? Zero? Whoever the mob likes most that day. And in the end, it makes about as much difference as who's elected homecoming king or queen.

That said, the US dollar index jumped back into its shell today, losing 33.4 basis points (0.43%) at 81.949. This is the umpteenth failure to break out of the egg-shell formation upward. Today was a stinger. Last Friday the dollar index has stopped at 81.90, then rose in a rounding top and slid right on down that dome today to break 81.90 and hit 81.70. It's a cloud no bigger than a man's hand, but a cloud, still. A dollar index below 81.80 looks gravity-bound, a dollar below 81.00 will break the 200 day moving average, which will attract short sellers like a cut on your leg attracts piranhas when you are swimming in the Amazon.

Today the Euro won the popularity contest, adding 0.58$ to $1.3154. Why? Apparently because ECB head gangste,r Mario Draghi, wants to depreciate the euro and ruin the European economy faster than the other central bank mobsters. Euro needs to close above $1.3243 to break out upside. I have little need of an opinion here, because I wouldn't buy the euro with your money.

With management perfection that resembles Six Sigma manufacturing, the yen went nowhere again today, closing unchanged at 101.03 cents/Y100. Those NNGM are accurate.

Amidst general jubilation stocks made -- yawn! -- new highs again today. Dow rose 0.32% (48.92) and closed at 15,105.12. The Schlaraffenland 500 -- whoa, make that the S&P500 -- gained 6.73 (0.41%) to 1,632.69.

Dow in gold gave back 0.14 oz (1.2%) to end at 10.25 oz (G$211.85 gold dollars). That also corralled it below the 20 DMA again (10.24) and unless gainsaid, reasserts the downtrend.

Dow in silver closed minutely higher, 0.32% at 631.30 oz. This barely lands on the upside of the downtrend, about a rounding error away. Trend remains firmly down.

TODAY'S QUOTATION: "A power in government in any form, to deal out wealth and poverty by law, overturns liberty universally; because it is a power by which a nation is infallibly corrupted." John 
Taylor of Caroline (1753 - 1824).

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.