Thursday, June 27, 2013

Gold Price Down 1.48 Percent Ending the Day at $1,211.40

Gold Price Close Today : 1211.40
Change : -18.20 or -1.48%

Silver Price Close Today : 18.533
Change : -0.054 or -0.29%

Gold Silver Ratio Today : 65.364
Change : -0.789 or -1.19%

Silver Gold Ratio Today : 0.01530
Change : 0.000183 or 1.21%

Platinum Price Close Today : 1325.10
Change : 21.40 or 1.64%

Palladium Price Close Today : 649.15
Change : 17.45 or 2.76%

S&P 500 : 1,613.20
Change : 9.94 or 0.62%

Dow In GOLD$ : $256.38
Change : $ 5.72 or 2.28%

Dow in GOLD oz : 12.403
Change : 0.277 or 2.28%

Dow in SILVER oz : 810.69
Change : 8.51 or 1.06%

Dow Industrial : 15,024.49
Change : 114.35 or 0.77%

US Dollar Index : 82.923
Change : 0.022 or 0.03%

The GOLD PRICE ended the day down $18.20 (1.48%) at $1,211.40 while silver held its loss to 5.4 cents (0.29%) and ended at 1853.3c.

'Twas one strange day for the gold price. Most of the forenoon it was flat, oscillating around $1,230. Then about noon New York time in one swoop it fell from $1,231 to $1,210, plump. In the aftermarket it lost another $12 to a low at $1,198.60. Rest of the day it flatlined.

The SILVER PRICE refused to let gold drag it down today, odd since silver is usually the more volatile member of the precious metals. Silver didn't undergo that big drop today and played calm most of the day, with a range of 1892c to 1845.7c.

This drop is so overdone it's becoming laughable. Bottom of the GOLD PRICE channel now is about $1,175. Silver is sitting on its bottom channel line already. Whether silver and gold prices have bottomed or will bottom around here, about now would be a perfect time for a surprise rally to gnaw off the shorts' greedy hands.

Rest easy, keep your eyes on the horizon. As the great entrepreneur H.L. Hunt used to say, "Never get really elated in victory; when times are tough, never get down."

A reader wrote and asked me, "What if they are trying to get everyone to sell their silver and gold by making prices so low people would sell in fear the price would drop more? What if that was the whole point?"

If I am asked that question, clearly I have expressed myself obscurely. I think that IS the point, to punish all those people who bought gold and silver and thereby quash (for a time) competition to the scabrous US dollar.

Now you can sneer at me as a natural born fool who believes in conspiracies, but I'm not talking conspiracy. I'm talking US statute (Gold Reserve Act of 1934 and Exchange Stabilization Fund), tons of proof of manipulation by GATA, and finally, self-interest. If YOU were charged with keeping the dollar afloat, would YOU try to gut the competition? Is a pig's little rear pork? Of course you would. And Ben Bernanke is at least as smart as you are.

I keep mentioning 1974 - August 1976 because the yankee government followed exactly the same silver and gold price smashing policy then. Y'all aren't old enough to remember it, but I am. I'm older than dirt. I was there. The US Treasury held periodic "gold auctions" to wreck the gold market, and sent it down 48%. But listen: after that August low gold rose 8 times into January 1980, and silver over 12 times. This is what I mean when I say they can manipulate "at the margin" and "for a time," but they can't alter the primary trend. They can only bend it for a while.

I saw some headline chirping that the Dow was "back above 15,000," implying that all's right with the world. Do these people ever look at a chart?

Dow closed today at 15,024.49, up 114.35 or 0.77% while the S&P500 lagged a bit, up 9.94 (0.62%) to to 1,613.20. While this MIGHT (in view of their previous fall) indicate the indices are rallying, it only brings them up to their 20 and 50 day moving averages (which are about the same spot, oddly).

To make myself clear, unless some crash alters my outlook, I expect stocks to make yet one higher high, probably later this year, I just don't expect it now. And in corrections, these B-waves or corrective waves against the trend, can be so strong they appear to be the start of a new day. Then they melt just as suddenly.

Of course, it makes no never-mind to me either way, since I'm not buying stocks.

Dow in Gold and Dow in Silver rose again today, which sent me scurrying back to my long term charts to check how much they had corrected since their 2007 - 2011 fall. For the Dow in Silver, 802.08 oz represents a 61.8% correction. It closed today at 810.69 oz, up 8.51 oz or 1.06% from yesterday.

Of that same 2007 - 2011 fall, Dow in Gold has corrected about 40% at today's 12.403 oz close (G$256.38 in gold dollars. Could go to 50% at 13.43 oz.

Not spoken here but hovering around in my mind is that a frequently seen correction is 38.2% or 50%. More volatile silver routinely corrects 75%.

US dollar index changed little today, down 2.2 basis points to 82.923. Yen lost 0.58% to 101.68 but the euro, just to change things up, rose 0.19% to $1.3037. Trends remain up for the loathsome dollar and down for the scrofulous yen and euro.

By the way, if you want a feeling for the coming demographic disaster in Japan, ponder that last year they sold more adult diapers there than infant diapers. Unlike the US and Europe, Japan won't import foreign workers to make up for the population loss.

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.