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Friday, July 12, 2013

Silver and Gold Prices Gained 5.6% and 5.4% Respectively — The Gold Price Closed at $1,277.80

Gold Price Close Today : 1,277.80
Gold Price Close 5-Jul-13 : 1,212.90
Change : 64.90 or 5.4%

Silver Price Close Today : 19.779
Silver Price Close 5-Jul-13 : 18.726
Change : 1.053 or 5.6%

Gold Silver Ratio Today : 64.604
Gold Silver Ratio 5-Jul-13 : 64.771
Change : -0.17 or -0.3%

Silver Gold Ratio : 0.01548
Silver Gold Ratio 5-Jul-13 : 0.01544
Change : 0.00004 or 0.3%

Dow in Gold Dollars : $ 250.18
Dow in Gold Dollars 5-Jul-13 : $ 257.96
Change : -$7.79 or -3.0%

Dow in Gold Ounces : 12.102
Dow in Gold Ounces 5-Jul-13 : 12.479
Change : -0.38 or -3.0%

Dow in Silver Ounces : 781.85
Dow in Silver Ounces 5-Jul-13 : 808.28
Change : -26.42 or -3.3%

Dow Industrial : 15,464.30
Dow Industrial 5-Jul-13 : 15,135.84
Change : 328.46 or 2.2%

S&P 500 : 1,680.19
S&P 500 5-Jul-13 : 1,631.89
Change : 48.30 or 3.0%

US Dollar Index : 82.972
US Dollar Index 5-Jul-13 : 84.438
Change : -1.466 or -1.7%

Platinum Price Close Today : 1,409.60
Platinum Price Close 5-Jul-13 : 1,324.90
Change : 84.70 or 6.4%

Palladium Price Close Today : 721.60
Palladium Price Close 5-Jul-13 : 675.95
Change : 45.65 or 6.8%

I already like July better than June, this week silver and GOLD PRICES gained 5.6% and 5.4% respectively, best week they've had in some time. Today gold backed off $2.30 to $1,277.80 and silver 16.4 cents to 1977.9c. I think it's worth noticing that gold wound up 7 bucks higher in the aftermarket and silver ten cents. Mercy, don't that make those closes look like the NGM "painting the tape"?

Both silver and gold prices sort of stepped up this week. That is, they jumped through levels on Wednesday, straight clean up, to a higher level -- gold from $1,260 to $1,280 and the SILVER PRICE from 1940c to 1980c (and a high of 2020c). 1980c and $1,277 now become support.

For the first time since May, the 12 day rate of change for silver and GOLD PRICES has turned positive, 1.8% for silver and 0.5% for gold today (that means silver is 1.8% higher today than 12 days ago, and its momentum is upward.)

Now we face another question: one more plunge down, or will silver and gold prices confirm these little rallies by clearing $1,325 and 2200c? These counter trend rallies can sometimes seem as strong as Granny's breath, then just give out, so they'll fool you. But my mind changed this week. Don't know how to explain it exactly, but the heaviness that has weighed me down since April has lifted off my spirit. Silver and gold are coming back, and O, my! They will be relentless. Y'all throw your minds back to 1976. After a fall from January 1974 through August 1976 of nearly 50%, gold came back to rise eight times in the next four years, silver 12.5 times.

The Dow in Gold and Dow in Silver turned down about 3%, even though stocks gained 2.2% - 3%. And the US Dollar? Stomped in the mud. Down 1.7% (more than that from its midweek high) and closed hanging its scabby scalp in shame below 83.

Far's I can recollect, the Dow and S&P500 hit new closing highs today, Dow settled up 3.38 at 15,464.30 (up 0.82%) and the S&P500 rose 5.17 (0.31%) to 1680.19. But there were some odd events gainsaying those new highs. They came without new intraday highs, and they weren't crashing great advances to a new high, but eked out by point-lets.

Y'all know I'm not going to leave it at that, for yet another non-confirmation nagged at those new stock highs. Ah, yes, the Dow in Gold and Dow in Silver neither one made new highs. Lo, they closed not inconsequentially below their late highs. For example, the Dow in Gold today closed at 12.012 oz (up 0.2%, $250.18 gold dollars), a right smart below its June high at 12.56 oz. Dow in silver ended at 781.85 oz (up 6.6 oz or 0.9% on the day), 37-2/3 oz below its June 819.52 ounce high. And both are a-slidin' down in steep downtrends.

What do y'all reckon that means? It could mean that stocks have topped against silver and gold, and that might mean silver and gold have seen their price lows.

That ol' US dollar index had been riding high since mid-June, but today wasn't no more cheerful than a treed coon. It's dropped 1.67% since its 84.64 high on 9 July. Mercy, it hasn't just dropped, it has PLUNGED, as they say. Today's low at 82.89 scared the 20 Day Moving average (82.88) to death, not to mention the 50 DMA (82.87). Gap down yesterday makes it look sick as a poisoned dog. Aww, it'll probably keep goin' up, unless it falls through 80.50, and will probably turn around about 82.25, maybe 82. Whew! I wouldn't trade that nasty thang with y'all's money!

Yen and Euro are right pleased the dollar has dropped. Yen ended today down 0.27% at 100.77, starting out another little uptrend. Euro lost 0.21 to end at $1.3068, but it has popped up stronger than the yen. Irony of all this to the fastidious and rational mind is, wretched as the US dollar is, the euro and yen are worse.

Oh, and all that stuff the media is spewing about the Fed tapering and Bernanke's exit strategy? I was out working my bees today, and I have two hives in a pasture where we keep a Jersey bull, and there was lots of that same "Fed tapering" and "Bernanke's exit strategy" all over the ground.

Y'all enjoy your weekend!

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.