Thursday, June 13, 2013

Gold Price Lost 0.4 Percent for the Week Closing at $1,377.60

Gold Price Close Today : 1,377.60
Gold Price Close 7-Jun-13 : 1,383.00
Change : -5.40 or -0.4%

Silver Price Close Today : 21.58
Silver Price Close 7-Jun-13 : 21.74
Change : -0.155 or -0.7%

Gold Silver Ratio Today : 63.831
Gold Silver Ratio 7-Jun-13 : 63.624
Change : 0.21 or 0.3%

Silver Gold Ratio : 0.01567
Silver Gold Ratio 7-Jun-13 : 0.01572
Change : -0.00005 or -0.3%

Dow in Gold Dollars : $ 227.73
Dow in Gold Dollars 7-Jun-13 : $ 227.92
Change : -$0.19 or -0.1%

Dow in Gold Ounces : 11.016
Dow in Gold Ounces 7-Jun-13 : 11.025
Change : -0.01 or -0.1%

Dow in Silver Ounces : 703.18
Dow in Silver Ounces 7-Jun-13 : 701.48
Change : 1.70 or 0.2%

Dow Industrial : 15,176.08
Dow Industrial 7-Jun-13 : 15,248.12
Change : -72.04 or -0.5%

S&P 500 : 1,636.36
S&P 500 7-Jun-13 : 1,643.38
Change : -7.02 or -0.4%

US Dollar Index : 80.774
US Dollar Index 7-Jun-13 : 81.676
Change : -0.902 or -1.1%

Platinum Price Close Today : 1,446.20
Platinum Price Close 7-Jun-13 : 1,501.40
Change : -55.20 or -3.7%

Palladium Price Close Today : 729.35
Palladium Price Close 7-Jun-13 : 759.45
Change : -30.10 or -4.0%

Silver and GOLD PRICES are trading in tight ranges, $20 today for gold and 45 cents for silver, and they've done that all week. Riding the same old seesaw, silver lost 21.4 cents (1%) today, falling to 2158.2c. The gold price lost 1%, too, or $14.20 and ended at $1,377.60. For the week gold fell 0.4% and silver slid 0.7%.

Ranges never last, so this one will break out one way or the other soon. Since the trend is down, most likely breakout direction is down, too. The SILVER PRICE range is 2133c to 2200c, gold's $1,375 - $1,415. Closes above or below those levels will lead to long moves. I expect one more plunge to end this long correction, and I expect it before June ends, but what I expect and what the market may be two very different things.

Most of all, silver and gold investors shouldn't worry about the "end of the bull market." It hasn't ended, because the cause (inflation) hasn't ended, and there's no end in sight. Where is the statesman who will tell all those living off government that the game is over? That rotten banks must fail? That you can't have your cake and eat it, too? He's nowhere in sight, so the corruption will continue, and so will the silver and gold bull market.

I'm sending out this weekly wrap-up on Thursday because this evening I'm driving over to Pickwick Lake to spend the weekend with my sons. Every year the women in my family take a week off at the lake -- they give us two nights. Mercy, I'm glad to get that. Till this year it's been only one night.

Markets are confused and spooky, the result of feeding off central bank inflation. Like a drunk at a bar, they get nasty and unpredictable when the bartender threatens to cut them off.

US dollar index lost 1.9% last week, and another 1.1% this week. Silver and gold prices eroded, slowly but painfully, and platinum and palladium were squashed, mostly today.

Although stocks returned from yesterday's thrashing with a bouncy day, they still closed the week lower.

Dow gained 1.21% (180.85) today after yesterday's 0.84% loss (126.79) and closed at 15,176.08. S&P500 today gained 1.48% to close 1,636.36.

All this up and down generates loads of broker commissions, but standing back and looking at a chart, stocks have been locked in a downtrend since their May high. Today's trading did no more than bring them back to the downtrend line. Both indices did touch their 50 day moving averages, which is a logical place for a little rally-ette to begin. On the other hand, closes below this mark will feed panic.

A strong feeling of "I've been here before" overcomes me when I view the Dow in Gold and Dow in Silver charts. The high struck in August, 1999, a big drop followed, then the Dow in gold spent another year rolling over. Dow in silver was even slower to make that final high.

I don't think the same thing is happening, only observing the sloth in rolling over. Stocks are a very, very big market and take a long time to roll over. Add to that silver and gold's present weakness, and a frustrating back and forth plagues the chart and our nerves.

Dow in gold today closed up 0.243 oz (2.3%) at 11.016 oz (G$227.73 in gold dollars). Yesterday it fell through the 20 DMA, today closed back above it. Downtrend from May high, though, remains undamaged.

Dow in silver today jumped up 15.2 oz (2.2%) to close 703.18 oz. This should turn down soon.

For whatever reason, the Mighty Masters of the Universe, a.k.a. "central bankers," have decided to swing the pendulum the other way, jacking up the yen and euro and knocking down the US dollar index. Come to think of it, I hope they're manipulating exchange rates. Otherwise this chaos means nobody is in charge. Come to think of it . . .

Technically the US dollar index has broken down badly and is targeting 79 or lower. Today it peeled off another 15.8 basis points (0.2%) to end at 80.774. That's well below the 200 day moving average(81.07), below internal support, just below everything. There's some chance it might catch around 80.25, and as far as it has fallen already, it's due at least a small correction.

Those who live by inflation, die by inflation. Nikkei stock index had gamboled and cavorted higher as the Japanese Nice Government Men drove the yen lower and lower. Yen is now rising and today the Nikkei lost 6.5%. Think an 825 point loss on the Dow and you'll approximate the pain. Now, as a point too painful for rational and fastidious minds to ponder, I pass over the grotesquely mythological Keynesian notion that depreciating a nation's currency by inflation can either spur economic activity or raise stock market values. However, that insanely goofy notion now driveth stock markets around the globe.

Yen rose 0.77% today, made a new high for the move at 106.47, and closed at 104.93 cents/Y100. Euro rose 0.22% to $1.3363, heading for $1.3500.

After all the revelations of government spying, the Establishment damage control teams are being trotted out to tell us why it really is a good thing to spend billions spying, and to kill US citizens with drones. Hard sometimes not to throw up your hands in despair. The more you know, the worse it gets. To my great relief I read Psalm 12 this morning, which cured my lame perspective.

Y'all enjoy your weekend!

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.