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Monday, August 05, 2013

Gold Price Lost $8.00 Ending at $1,302.60 Must Hold Above $1,300

Gold Price Close Today : 1302.60
Change : -8.00 or -0.61%

Silver Price Close Today : 19.710
Change : -0.193 or -0.97%

Gold Silver Ratio Today : 66.088
Change : 0.239 or 0.36%

Silver Gold Ratio Today : 0.01513
Change : -0.000055 or -0.36%

Platinum Price Close Today : 1447.20
Change : -3.40 or -0.23%

Palladium Price Close Today : 734.30
Change : 5.50 or 0.75%

S&P 500 : 1,707.14
Change : 2.80 or 0.16%

Dow In GOLD$ : $247.76
Change : $ 1.99 or 0.81%

Dow in GOLD oz : 11.985
Change : 0.096 or 0.81%

Dow in SILVER oz : 792.09
Change : 9.21 or 1.18%

Dow Industrial : 15,612.13
Change : 30.34 or 0.19%

US Dollar Index : 81.857
Change : -0.100 or -0.12%

The GOLD PRICE lost $8.00 to end at $1,302.60 and the SILVER PRICE gave up 19.3 cents to end at 1971c. It was a day full of dozing and snoring. Gold ranged from $1,317.70 to $1,301.52. ("Mama, why'd we bother coming to work today?") Silver ranged 1999.7c to 1968.8c.

Neither performance crossed any lines. The GOLD PRICE must hold on above $1,300. That's what we know, that's what we're watching. It will work higher, UNLESS it breaks that level, then we have more groveling to do.

It's all right, calm down. Bull market is still running, in spite of the April mauling we took. June 27 lows most likely market bottom of the 2011-2013 correction. Y'all have to learn to be patient. Come to think of it, so do I.

Didn't anything take place today much worth talking about, yet I'm gonna talk about it anyway, because I'm just a natural born fool from Tennessee who don't know to stop when he's ahead, and the less you say, the more ahead you stay.

Stocks have done this: they hit new highs in May, declined into the last part of June and fell out of their intermediate upward channel. But they caught, and began a sharp rally, finally breaking back into that trading channel. They have since clung to that bottom line, scooting barely up, and the in process traded through that uptrend line. Stocks are travelling on Bernanke's newly created money, and nothing else. No economic future.

The Bloomberg consensus has been dropping for 2-1/2 years, while the S&P500 has been rising. Oh, mercy, any of y'all could tell 'em that the reason stocks are rising while economic expectations are falling is -- Dah-da-ta-DAH -- Bernanke is printing new money to pump up the stock market, which has become the Fed's and the Administration's latest Potemkin canary in the mine of economic progress. Of course, all of us down here in the mine are asphyxiating, but that's okay. That wooden canary is still chirping away. (Yes, I realize that was outrageous metaphor mixing, but this here writing ain't rocket surgery.)

Dow lost 46.23 (0.3%) today to close at 15,612.13. S&P500 dropped 2.53 (0.15%) to 1,707.14.

I pay more attention to the Dow measured in silver and gold. Dow in gold traded up (drat!) 0.81% to 11.985 oz (G$247.76 gold dollars), and above it's upper downtrend line and its 20 DMA (11.90 oz). Dow in silver rose 9.21 oz (1.18%) to 792.09 oz, and stopped right at its downtrend line. Already stands above 20 DMA now 783.25 oz. This pushes the envelope, but the roll-over downward remains unbroken.

Currencies are like a 3:00 a.m. bar fight -- you can't be sure who's going to win, and you don't care. US dollar index started sky-diving first of July, and only landed last trading day of July around 81.50. Bounced up off support, only to be stymied by its 50 DMA (82.59). Today it dropped another 10 basis points (0.13%) to end at 81.857, still below the holy grail of 82. Euro is trying to break down but can't quite makes up its mind. Lost another 0.13% today to end at $1.3259, a monument to global gullibility and central bankers' ability to spin believable lies. Yen hit its uptrend line early in July, traded up into an even-sided triangle, broke out upside, then traded back to the uptrend line. Chart is not spectacular for strength, but it shows a breakout with touchback, so its rally remains unbroken, if lukewarm.

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.