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Tuesday, May 21, 2013

Silver and Gold Prices Failed to Complete the Second Half of that Key Reversal

Gold Price Close Today : 1377.80
Change : -6.50 or -0.47%

Silver Price Close Today : 22.442
Change : -0.126 or -0.56%

Gold Silver Ratio Today : 61.394
Change : 0.055 or 0.09%

Silver Gold Ratio Today : 0.01629
Change : -0.000015 or -0.09%

Platinum Price Close Today : 1458.40
Change : -26.20 or -1.76%

Palladium Price Close Today : 747.70
Change : -2.30 or -0.31%

S&P 500 : 1,669.16
Change : 2.87 or 0.17%

Dow In GOLD$ : $230.87
Change : $ 7.50 or 3.36%

Dow in GOLD oz : 11.168
Change : 0.363 or 3.36%

Dow in SILVER oz : 685.66
Change : 6.15 or 0.90%

Dow Industrial : 15,387.58
Change : 52.30 or 0.34%

US Dollar Index : 83.83
Change : 0.075 or 0.09%

Silver and GOLD PRICES failed to complete the second half of that key reversal. The SILVER PRICE lost 12.6 cents (0.47%) today to 2244.2c while the gold price lost $6.50 (0.56%) to $1,377.80.

That's certainly disappointing, but does not necessarily mean that silver and gold prices have not made their bottoms. Both charts still look good, and especially those turnarounds yesterday. I had to buy a little today.

I can't wholly rule out another plunge down for both metals, but for now their bias is upward.

Isn't the power of intimidation amazing? That's one reason that government always wants to makes sure that you have a guilty conscience. Why? Because a guilty man is so easy to control. Today if any one stands up for his rights -- real rights, not manufactured ones -- or controverts the official government or media or academia line, why, then he's an extremist or a terrorist, and all they need do is brandish those or similar pejoratives to intimidate most folks into silence.

Intimidation -- it's government's most useful tool.

Today the whole world was fine, jes' fine, once again. Why, stocks rose and the dollar rose and the euro rose and the yen fell and pretty soon there'll be a chicken in every pot. Well, an artificial GMO-chicken, at least.

Dow added 52.30 (0.34%) to 15,387.58. S&P500 gained 2.87 (0.17%) to 1,669.16. I think both indices are vying for who can run the longest string of new all-time highs. I tell y'all, it's the best of all possible worlds, the very best. Ben himself said so, and if Ben tells you a rooster dips snuff, you can look under his wing for the brush.

Dow in Gold and Dow in Silver both rose today. Dow/Gold rose 0.15 oz to 11.17 oz (G$230.90 gold dollars). Dow/Silver gained 14.28 oz (2.13%) to end at 685.26.

US dollar index gained slightly, up 7.5 basis points (0.1%) to end at 83.831. That doesn't really tell us very much. Trend in force remains in force until it's broken, and the dollars uptrend has not yet been broken.

The euro gained 0.18% to $1.2908, but remains below all its moving averages. 200 DMA stands at $1.2980, so we'll see what happens there.

Japanese yen gave back some of yesterday's rise, losing 0.22% to 97.56 cents per Y100. Nothing interesting there, but although it may be nothing more than a coincidence, the yen and stocks have been moving opposite each other ("have been negatively correlated"). That suggests that any rise in the yen will be accompanied by falling stocks. Transmission mechanism of that relation, if there is one, isn't clear to me, unless money fleeing Japan and the yen is running to the US stock market for a possible return as opposed to a sure currency loss. But then, I'm always looking for sense where no sense may be.

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.