Gold Price Close Today : 1280.10
Change : 32.70 or 2.62%
Silver Price Close Today : 19.943
Change : 0.792 or 4.14%
Gold Silver Ratio Today : 64.188
Change : -0.947 or -1.45%
Silver Gold Ratio Today : 0.01558
Change : 0.000227 or 1.48%
Platinum Price Close Today : 1421.10
Change : 53.00 or 3.87%
Palladium Price Close Today : 716.90
Change : 4.40 or 0.62%
S&P 500 : 1,675.02
Change : 22.40 or 1.36%
Dow In GOLD$ : $249.67
Change : $ (3.74) or -1.48%
Dow in GOLD oz : 12.078
Change : -0.181 or -1.48%
Dow in SILVER oz : 775.26
Change : -23.22 or -2.91%
Dow Industrial : 15,460.92
Change : 169.26 or 1.11%
US Dollar Index : 83.022
Change : -0.065 or -0.08%
I knew something big was happening when the GOLD PRICE in yesterday's aftermarket jumped from $1,247.40 to $1,280.20. Mercy!
Today the gold price rose $32.70 (2.62%) to close the crooked Comex at $1,280.10. The SILVER PRICE rose 4.14% (79.2 cents) to end Comex at 1994.3, but spent much of the day above 2000c. Silver's high today was 2022.3, gold's $1,296.67.
All this improves the outlook considerably. Not only did both metals close at their 20 day moving averages, gold also closed above the downtrend line from its April high. Silver hit that line, but didn't pierce it.
Hold on, remember what H.L Hunt said about never getting down when things are tough, and never too elated in victory. To confirm a rally the GOLD PRICE needs to close not merely above $1,300, but also $1,350. Silver must see itself above 2100c. Yes, I am buying right along, but I still want proof.
One thing holding me back is that reactionary uplegs can seem strong as a garlic milkshake -- until they collapse.
Oh, one more tidbit: 12 day rate of change for gold stands right below zero, gold's is above zero at 2.3%. That means it's lightfooted, it's rising, momentum's up.
We're going to have more fun today than we've had for a looong time.
Bernanke got at it again yesterday, roilin' markets with the same weapon Samson used so effectively against the Philistines. Durned if I can keep straight what "hawkish" and "dovish" means when they're referring to the Federal Reserve open market committee, other than they're all bird-brains. Whichsoever it may be, Bernanke made noises that the diviners and readers of sheep guts and tea leaves interpreted as meaning more money printing and less talk of "tapering."
That caught some markets -- like the dollar -- overextended to the upside and others -- silver and gold -- overextended to the downside. Stocks responded in their typically irrational fashion, rising on news that Bernanke will further devalue the dollar and make economic calculations virtually impossible because of inflation AND misdirect further billions to uneconomic investments. "Hoo-ray, Hoo-ray, it's Thursday, let's get drunk!"
The US dollar index fell from 84.64 on 9 July (intraday high at 84.96) to 83.022 today, crashing 1.91%. Huge move for a currency, but remember it was ready to fall because it had been rising straight up since mid-June.
Yen and the euro turned and went the other way. Yen rose today to 101.17 cents/Y100, up 0.92%. Euro rose 0.93% to $1.3108. ( July 9 marked the bottom for both.) Euro even gapped up today and closed right above its 20 day moving average (1.3100). For a while, at least, these other two scrofulous, despicable fiat currencies will gain at the expense of the scrofulous, despicable dollar. I say "despicable" because all are nothing more than wretched shills to rob honest folk with government approval.
Speaking of shills, let us now turn our jaundiced gaze on the stock market. Today had the media chortlers a-chortlin' and the chirpers a-chirpin'. 'Pears both the S&P and Dow are on their way to challenge their way to challenge their last highs. Ahh, we'll see.
Dow today added 1.11% (169.26) to 15,460.92 (last intraday high was 15,542.40). S&P500 gobbled up 22.4 (1.25%) to end at 1,675.02 (last intraday high was 1,687.18). The jubilatin' was jinral.
That interested me less (since stocks' rise remains purely a phenomenon caused by inflation and not economic performance) than stocks measured by silver and gold. These gauges are now talking, loud and clear. While stocks rose a strong 1.11%, the Dow in gold FELL 1.48% to 12.078 oz (G$249.67 gold dollars). Dow in silver fell even more, 2.91%, down 23.22 oz to 775.26 oz. Both indicators have established a sharp four-day downtrend. Y'all take this home: they are falling in the face of a strongly rising stock market.
Lest I forget, the breakout in interest rates has probably ended its rally for a while. The yield on the 10 year treasury note rose nearly to its 6 year downtrend line, though, before it stopped for breath. My guess is that rising interest rates gave the Nice Government Men the nervous fantods and severe digestive tract distress.
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.
