Wednesday, June 05, 2013

Gold Price is Spring Loaded with Tension and a Rampaging Good Buy

Gold Price Close Today : 1398.40
Change : 1.30 or 0.09%

Silver Price Close Today : 22.465
Change : 0.065 or 0.29%

Gold Silver Ratio Today : 62.248
Change : -0.123 or -0.20%

Silver Gold Ratio Today : 0.01606
Change : 0.000032 or 0.20%

Platinum Price Close Today : 1509.40
Change : 19.50 or 1.31%

Palladium Price Close Today : 754.30
Change : 5.45 or 0.73%

S&P 500 : 1,608.90
Change : -22.48 or -1.38%

Dow In GOLD$ : $221.15
Change : $ (3.42) or -1.52%

Dow in GOLD oz : 10.698
Change : -0.165 or -1.52%

Dow in SILVER oz : 665.95
Change : -11.62 or -1.71%

Dow Industrial : 14,960.59
Change : -216.95 or -1.43%

US Dollar Index : 82.76
Change : -0.197 or -0.24%

The GOLD PRICE, still trapped within the same range, rose $1.30 to $1.398.40 while SILVER added 6.5 cents to 2246.5c.

On a five day chart silver and gold prices have formed a long even-sided triangle the first three days of this week. Even-sided triangles can break out either way, up or down.

This much is clear. If gold closes below $1,390, it will fall further. If it climbs over $1,420 - $1,425, it should rally. (Silver under 2200c or over 2330c.)

Meanwhile Commitments of Traders and Bullish percentage indicators are shouting that both the silver and GOLD PRICE are rampaging good buys.

These stand-offs appear quiet, but are spring-loaded with tension. The market will break one way or the other soon.

One of the greatest propaganda coups of the banks ("The Money Interest") has been to take discussion of the banking system and money clean off the table and consign all questions to the "scientific experts" of the Federal Reserve.

All American history can be explained as a struggle between Jeffersonians and Hamiltonians. Jeffersonians have always stood for an independent, self-sufficient people, and Hamiltonians for an elite -- the people versus the banks. People versus the parasites.

Today the banks, cartelized under the Federal Reserve in 1913, reign supreme. If you want to know what the victory of "The Money Interest" would mean, look around you.

This weekend leaders of "The Elite" will be meet at the Bilderberger conference in Watford, England, most likely to figure out how the banks will bleed us next. To give you a glimmer how the news is managed, I searched Google News for "Bilderberger" and the out of the first ten items that came up, only three were in English, the rest in German. Shucks. Did I mention that Google CEO Schmidt is a Bilderberger, too? Or that the Bilderbergers will be talking about a global tax?

Never mind. It's all a coincidence.


Hardly had the words tripped off my fingertips about stocks' dropping to their 50 day moving averages than they obliged. Dow plunged 216.95 (1.43%) today to end below 15,000 at 14,960.59. S&P500 plummeted 22.48 (1.38%) to 1,608.90. Those 50 DMAs now stand mighty close at 14,914 and 1604.17.

Size of today's drop means both indices crossed a meaningful line. Dow fell out of its established trading channel, S&P500 lacked maybe 6 points of that. Stocks have further to fall before stopping. This correction probably does NOT mark the end of the rally that began in 2009. That should come by year end or 1Q2014.

Dow in Gold and Dow in Silver both closed below their 20 DMAs today.

Dow in gold closed down 1.52% at 10.698 oz (G$221.15 in gold dollars). 20 DMA is 10.86 oz. (By the way, the 1929 closing high was $381.17 or 18.44 oz. Either stocks were worth a lot more then, or gold a lot less.)

Dow in Silver closed at 665.95, down 11.62 oz. or or 1.71%. 20 DMA stands at 669.05. Long term downtrend line stands about 620 oz.

Today's crossing below the 20 DMA was the first confirmation the trend has turned down. That implies silver and gold will begin gaining value faster than stocks (or, losing value more slowly -- either is mathematically possible).

Yesterday's dollar index rise was merely the final kiss good-bye, the bounce back up to the broken uptrend line. Today the dollar index tripped again, 19.7 basis points (-0.24%) to 82.575. Dollar crosses internal support line at 82 and speeds its fall.

Euro built modestly on its breakout through the downtrend line by rising 0.11% to $1.3094. Sure doesn't act like it's in any hurry to run away upside. Yen recovered after its bout with acrophobia yesterday to rise 0.81% to 100.8 cents/Y100. 50 DMA stands at 101.00.

US$1=Y99.2=E0.7637=0.044 514 oz. Ag=0.007 150 oz. Au.

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.