Gold Price Close Today : 1,371.70
Gold Price Close 9-Aug-13 : 1,312.90
Change : 58.80 or 4.5%
Silver Price Close Today : 2331.7
Silver Price Close 9-Aug-13 : 2039.9
Change : 291.80 or 14.3%
Gold Silver Ratio Today : 58.828
Gold Silver Ratio 9-Aug-13 : 64.361
Change : -5.53 or -8.6%
Silver Gold Ratio : 0.01700
Silver Gold Ratio 9-Aug-13 : 0.01554
Change : 0.00146 or 9.4%
Dow in Gold Dollars : $ 227.31
Dow in Gold Dollars 9-Aug-13 : $ 242.88
Change : -$15.57 or -6.4%
Dow in Gold Ounces : 10.996
Dow in Gold Ounces 9-Aug-13 : 11.749
Change : -0.75 or -6.4%
Dow in Silver Ounces : 646.87
Dow in Silver Ounces 9-Aug-13 : 756.19
Change : -109.32 or -14.5%
Dow Industrial : 15,083.16
Dow Industrial 9-Aug-13 : 15,425.51
Change : -342.35 or -2.2%
S&P 500 : 1,655.83
S&P 500 9-Aug-13 : 1,691.42
Change : -35.59 or -2.1%
US Dollar Index : 81.281
US Dollar Index 9-Aug-13 : 81.117
Change : 0.164 or 0.2%
Platinum Price Close Today : 1,526.70
Platinum Price Close 9-Aug-13 : 1,499.00
Change : 27.70 or 1.8%
Palladium Price Close Today : 762.15
Palladium Price Close 9-Aug-13 : 740.65
Change : 21.50 or 2.9%
The GOLD PRICE closed at $1,371.70 today, but its feet are still tangled in that resistance around $1,350. RSI not yet overbought, as silver's is. Time for the gold to play catch-up with silver. Next high hurdle is $1,425, then gold will have to stare down $1,500. Close above $1,550 confirms beyond argument that gold and silver's long correction has ended.
The scoreboard never lies. Been a while since I could write, "Silver rose 14.3% this week and gold 4.4%." GOLD/SILVER RATIO dropped a massive 8.6%. Stocks took a mean whipping with a big stick, down over 2%. US dollar index stayed flat, like a central banker's head. Platinum and palladium gained, but nothing like silver and gold prices.
I'm enjoying the rally, but after the leaps this week witnessed, probably is time to start pondering a small reaction in silver and gold to digest these gains. Gold price rose $10.10 (0.7%) today and closed Comex at $1,371.70. Silver price gained another 38.8 cents (1.7%) to 2331.7c, after gaining 5.27% yesterday, and today smashed through 2300c resistance.
Problem is, The SILVER PRICE Relative Strength Index (RSI) has crossed over into overbought territory, as has the Dow in Silver. Still, overbought can get more overbought, and I still expect silver has 2450 - 2500 cents targeted for this second leg of this rally. (I believe the first ended at that 2059c high on 22 July). Volume tapered off today but overall is rising. Rate of change indicators are all headed up without any break. All the same, eight up-days stretches any market. Time for a breather soon.
Time to stop waiting and buy silver and gold.
Sobering thought is, What is gold telling us about the future?
Stocks had their most miserable week this year. Today the Dow gave up 29.03 (0.19%) to 15,083.16. S&P500 lost 5.49 (0.33%) and drew even with the Dow by also closing below its 50 day moving average.
Incase this moving average talk remains cloudy to you, think about this. A moving average averages the last X days, and on the next day drops the oldest number and picks up the newest, thus "moving." A market above its MAs has upward momentum, a market below downward momentum. Never underestimate the power of inertia.
Dow is probably targeting support from the April and June lows, now about 14,600. Like support for the S&P500 stands now about 1,585, and rising.
For the week the Dow in Silver plunged -- listen to this -- 14.5%! Closed today down another 12.21 oz (1.9%) at 646.87 oz. Dow in Gold fell 6.4% this week, and lost 0.9% today to close at 10.996 oz (G$227.31 gold dollars).
The long term (ca. 14 year) downtrend line for the Dow in Gold stands right now about 10.50 oz and for silver about 610 oz. Once these indicators fall back below those downtrend lines we will have our final confirmation that stocks' rally against metals has well, truly, and permanently ended.
Long term targets are one to two ounces for the DiG and 32 to 16 oz for the Dow in Silver.
US dollar index did not close the week down, but behaved wretchedly anyway. Today it gained 0.14% to 81.281, up 10.9 basis points. Watching these currencies makes me feel like a schizophrenic at a tennis match -- way up one day, way down the next. Euro reversed yesterday's gains today with a 0.9% drop to $1.3335. I think its uptrend hath shattered on a double top. Yen's rise yesterday only filled in a spacious gap left behind when it fell on Tuesday. Lost 0.24% today to 102,.49 cents/Y100.
I am still nonplussed: why would anybody buy these scrofulous, nasty fiat currencies when they could buy silver or gold?
The situation which has been shrouded in murky clouds since before April has now cleared. The massive money creation IVs which have lifted stocks against the primary downtrend is now wearing off. Maybe stocks reach one more high later this year, but the trend is broken, as witness the Dow in Gold and Dow in Silver. After the concentrated attack on silver and gold in April, they bottomed June 27 when they completed the 2011-2013 correction. A very small chance remains metals might plunge once more, but it diminisheth the closer gold gets to $1,550. A close above that negates it altogether.
Time to climb back into silver and gold and OUT of stocks and bonds.
Zut alors! On 16 August 1777 France declared bankruptcy. The continuing insolvency led directly to the widespread loss of respect and esteem for the government and to the bloody revolution.
On 16 August 1896 gold was discovered at Bonanza Creek in Alaska. Man! Those people had to be tough just to reach the Klondike, walking most of the way, never mind living there and mining gold.
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.