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Friday, July 26, 2013

Silver and Gold Prices Rose this Week — Gold Price Up 2.2% Closing at $1,321.50

Gold Price Close Today : 1,321.50
Gold Price Close 19-Jul-13 : 1,293.30
Change : 28.20 or 2.2%

Silver Price Close Today : 19.765
Silver Price Close 19-Jul-13 : 19.448
Change : 31.70 or 1.6%

Gold Silver Ratio Today : 66.861
Gold Silver Ratio 19-Jul-13 : 66.500
Change : 0.36 or 0.5%

Silver Gold Ratio : 0.01496
Silver Gold Ratio 19-Jul-13 : 0.01504
Change : -0.00008 or -0.5%

Dow in Gold Dollars : $ 243.38
Dow in Gold Dollars 19-Jul-13 : $ 248.45
Change : -$5.07 or -2.0%

Dow in Gold Ounces : 11.774
Dow in Gold Ounces 19-Jul-13 : 12.019
Change : -0.25 or -2.0%

Dow in Silver Ounces : 787.19
Dow in Silver Ounces 19-Jul-13 : 799.25
Change : -12.06 or -1.5%

Dow Industrial : 15,558.83
Dow Industrial 19-Jul-13 : 15,543.74
Change : 15.09 or 0.1%

S&P 500 : 1,691.65
S&P 500 19-Jul-13 : 1,692.09
Change : -0.44 or 0.0%

US Dollar Index : 81.633
US Dollar Index 19-Jul-13 : 82.621
Change : -0.988 or -1.2%

Platinum Price Close Today : 1,421.90
Platinum Price Close 19-Jul-13 : 1,429.70
Change : -7.80 or -0.5%

Palladium Price Close Today : 723.10
Palladium Price Close 19-Jul-13 : 748.65
Change : -25.55 or -3.4%

Silver and GOLD PRICES rose this week. The gold price up 2.2%, silver only rose 1.6%. Silver was keeping pace with gold early in the week, but was smashed later. Silver ended today down 38.2 cents (1.9%0 at 1976.5c and gold down $7.30 (0.5%) at $1,321.50.

The gold price popped up to $1,338.70 overnight and silver price to 2029c, but were steadily attacked after midnight New York time, sliding down little by little. A little after 10:00 New York time, "somebody" smacked silver and gold with a baseball bat to the head. Silver dropped from 1995c down to 1975.1c, gold from $1,326 to $1,320.

Yet in the aftermarket gold has jumped up $12 to $1,333.20 and silver 30 cents to 2005c.

What's the real issue, the real hurdle? The GOLD PRICE must close over $1,350 to hint that the long correction since August 2011 has ended. Silver needs to climb above 2300c. In the short term, a fortnight and a month, both metals have upward momentum, but they must break through those barriers.

BOTTOM LINE: SILVER and gold bull markets remain intact, but it's too early to call the June price lows THE bottom. Looks now as if they were, but that must be confirmed by higher prices. Future for silver and gold is huge and higher, but for the US economy rotten. Bernanke has blown a bond bubble and the US government is in the first stages of a sovereign debt crisis. That will all drag down the economy and the dollar drastically. Y'all don't want to be under them when they fall.

Although silver and gold prices worked higher and gold broke through $1,300 resistance, the week disappointed a tad. But then, after the beating gold and silver took this spring, we ought to expect hardship getting through every resistance level.

Stocks (Dow but not the S&P500) hit a new high by a gnat's eyebrow, then eroded. Both just hung in the air, unable to rise or fall.

US dollar index had its worst week in quite a while. Platinum and Palladium gainsaid silver and gold.

That dollar index broke support at 82, so it will drop lower still. First target is the 200 day moving average at 81.47, second is support about 80.75. Apparently not everybody in the world believes yet that Bernanke can issue limitless amounts of new currency without eroding the dollar's value. What about interest rates? The 10 year treasury note yield had dropped from the first or July, but last week hit a low and this week began climbing again. Ended at 2.561%, above the 20 DMA. I suspect this rising interest rate (since May) is the first robin of the bond bubble's bursting.

For now I am expecting the dollar to turn around either at the 200 DMA or 81-ish support, thence to rally again. However, it if breaches 81.75, then trouble will erupt.

Euro went flat today at $1.3275, down 0.02%. However, it abideth in an uptrend since 9 July.

Yen at last made up its mind this week. Broke out upwards from an even-sided triangle, and jumped up 1.06% today to 101.81 cents/Y100. Headed higher, until the Japanese Nice Government Men smack it again. Why anybody in his right mind would buy or own yen when the whole strategy of the prime minister is to GUT the yen is a mystery too deep for my shallow ken.

We passed a great milestone this week: the Dow in gold and Dow in silver broke down, confirming their broadening top was indeed a top. This gains more significance because the Dow hit a new high on Tuesday, the S&P500 on Monday, while the Dow measured in metals fell.

Today the Dow spent most of its day underwater, but cosmetically climbed 3.22 points (0.22%) above yesterday's close right at day's end. S&P500 rose 1.4 (0.08%) to 1,691.65. 'Pears ready to correct next week.

Today the Dow in gold rose 0.6% to 11.774 oz (G$243.38 gold dollars). Dow in silver acted poorly, with a close back above the 780.17 oz. 20 DMA. That was 787.19 oz, up 2%. Only that Dow in Silver leaves me the least bit queasy.

In a rare burst of truthfulness for the world we live in, Former IMF chief Dominique Strauss-Kahn will face trial on pimping charges over an alleged prostitution ring in the French city of Lille. I reckon all those things we keep thinking about central bankers aren't really metaphorical after all -- they're literal.

To prove that the world is not full of evil dolts, listen to what happened to me. As we were getting ready to fly out of Reno last week, I discovered I had lost my driver's license. Never mind the humiliation of the full pat down treatment I had to suffer to catch my plane. I came home and tried to order a replacement, but after the Tennessee Dept. of Safety website thwarted me and I held for 20 minutes waiting on the "Help" line, I gave up. My tolerance for government "efficiency" is, to put it minimally, right low.

Then today I got a letter from the Lost and Found at the Las Vegas Airport, through which we had flown on our way out to Reno. Within was found -- that's right -- my driver's license. Some kind and good-hearted person had picked up my license and turned it in to Lost and Found at the Las Vegas Airport. They, acting out of outstanding courtesy, mailed it to me. That kindness made my week.

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.