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Wednesday, June 26, 2013

Silver and Gold Prices Fell Gold Lost $45.20 Closing at $1,229,60

Gold Price Close Today : 1229.60
Change : -45.20 or -3.55%

Silver Price Close Today : 18.587
Change : -0.939 or -4.81%

Gold Silver Ratio Today : 66.154
Change : 0.866 or 1.33%

Silver Gold Ratio Today : 0.01512
Change : -0.000201 or -1.31%

Platinum Price Close Today : 1303.70
Change : 21.40 or 1.67%

Palladium Price Close Today : 631.70
Change : 11.05 or 1.78%

S&P 500 : 1,603.26
Change : 15.23 or 0.96%

Dow In GOLD$ : $250.67
Change : $ 11.32 or 4.73%

Dow in GOLD oz : 12.126
Change : 0.547 or 4.73%

Dow in SILVER oz : 802.18
Change : 46.25 or 6.12%

Dow Industrial : 14,910.14
Change : 149.83 or 1.02%

US Dollar Index : 82.541
Change : -0.077 or -0.09%

Silver and GOLD PRICES fell overnight, beginning with big drops in Asia. Nice Government Men must be staying up late nights.

If silver and gold prices were both sleeping yesterday, they fell out of bed overnight. Gold tumbled $45.20 (3.55%) to $1,229.60 and silver lost 93.9 cents (4.81%) to 1858.7c.

Tumble took place before midnight this morning. Both the silver and gold price were basically flat all day. What I saw in gold was a $10 range, in silver 25 cents.

The SILVER PRICE has already lost more from its peak (68.2%) than it lost in 2008 (57.4%) Next support lies about 1750c. So has gold, 35% versus 30%. Following the seasonal pattern, if silver and GOLD PRICES don't stop here at the end of June or early July, it will be fall before they bottom.

People keep asking me where this will stop. I don't know where, I don't know when, I only know it will, unless the law of cause and effect has been repealed. Meantime, I sit and try to wax philosophical while bleeding. This looks more and more like 1974-1976, when gold lost 52%, then came back in the next four years to rise 8 times, and silver over 12 times.

History doesn't repeat, but it sure echoes.

A friend pointed out to me today that at the end of the calendar quarter, fund managers buy what has gone up and sell what's gone down, making themselves appear clairvoyant. Might be that they are unloading positions. Sounds more rational than most of the stuff I've heard.

Here's another example of how irrational markets are behaving, and how irrationally the media interpret their irrationality. Stocks rose today -- allegedly -- on a downward revision of US GDP numbers from 2.4% to 1.8% Speaking of rationality, let's just muse a moment on how reliable ANY government numbers are. How could they miss GDP by 33%? "Oh, shucks! We left out New York, Montana, and Texas! Y'all go back and refigure that GDP, right now! Shame on you!"

How rational is it to base anything on numbers like that, when you know also the government regularly LIES?

Anyhow, when this news got to the stock market, according to media reports, stock investors concluded that lower economic performance means more Fed inflation (a.k.a., "easing"), so stocks jumped up. Why? Because they believe stocks' performance is tied to continued Fed easing. Perversely, that's true, since stocks are not reacting so much to economic fundamentals as they are to the rising tide of inflation from the Fed. Yet it's also NOT true, sine the inflation will only make the economic problems worse over the long run.

That brings us to the NEXT irrationality. If inflation is good for stocks, why isn't it good for silver and gold? In this case I feel qualified to say that ONLY inflation drives the prices of silver and gold. So how is it good for stocks but bad for silver and gold? Nuts. Insane.

But while they might be suppressed for a while by investor ignorance, manias, or government manipulations, eventually the fundamentals will wreak their vengeance. Watch for it.

Dow added 149.83 (1.02% today to 14,910.14. S&P500 augmented 15.23 (0.96%) to 1,603.26. This brings both indices back to the top of their downtrend channel. Significantly higher price would say the downtrend has ended, but they are more likely to bounce off that top trend line downward.

Dow in gold and Dow in silver both hit new highs today. Dow in gold closed 12.126 oz, up 0.547 oz or 4.73%. Dow in silver rose 46.25 oz (6.12%) to 802.18 oz.

US dollar index rose 28 basis points (0.36%) today to 82.955. Yen remains fairly flat against the dollar, closing up 0.05% at 102.27. Euro, on the other hand, closed below its 200 DMA today and is free falling. Lost 0.54% today and closed at $1.3012.

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.