Thursday, August 29, 2013

Silver and Gold Prices Closed Lower with the Gold Price Closing at $1,412.90

Gold Price Close Today : 1412.90
Change : -5.70 or -0.40%

Silver Price Close Today : 24.090
Change : -0.301 or -1.23%

Gold Silver Ratio Today : 58.651
Change : 0.490 or 0.84%

Silver Gold Ratio Today : 0.01705
Change : -0.000144 or -0.84%

Platinum Price Close Today : 1521.50
Change : -17.70 or -1.15%

Palladium Price Close Today : 737.75
Change : -8.30 or -1.11%

S&P 500 : 1,638.17
Change : 3.21 or 0.20%

Dow In GOLD$ : $217.13
Change : $ 1.11 or 0.51%

Dow in GOLD oz : 10.504
Change : 0.054 or 0.51%

Dow in SILVER oz : 616.06
Change : 8.28 or 1.36%

Dow Industrial : 14,840.95
Change : 16.44 or 0.11%

US Dollar Index : 81.940
Change : 0.503 or 0.62%

'Twasn't a particularly good day for the silver and GOLD PRICES, but then again not bad enough to make me reach for my wastebasket. Silver lost 30.1 cents to close Comex at 2409c and gold forked over $5.70 to land on $1,412.90.

Worse than the Comex closes were the aftermarket slides to $1,408.80 and 23.88.

No doubt we are seeing a little correction here of the most recent upmove. A 50% correction in the GOLD PRICE would carry it back to $1,350 (not below!) and the SILVER PRICE to 2210 cents.

Friends, markets swing like a clock pendulum. If you can't stand that, better get a government job. It's the same every day.

Should the gold price close above $1,425 or silver silver above 2465c, any correction will have been nixed.

Randolph Bourne once wrote, "War is the health of the state." That's what bothers me. Having run out of other options to "fix" the economy, will the US administration now avail itself of the ultimate economy fixer, war? Talk about boosting demand!

Five day chart argues that the US dollar index bottomed on Tuesday and has one more thrust up in this upleg. That probably will take it through 82.00 resistance. Today the dollar index rallied 50.3 basis points (0.65%) to 81.94. This cuts through the 200 DMA at 81.65, but not through that internal resistance at 82. Not the final word, but argues that the dollar has reversed skyward.

That euro was laid low today like a hound that had been eating peaches. It gapped down below its 20 DMA ($1.3330) and nearly reached its 62 DMA ($1.3243), losing 0.73% to $1.3243. A serious confirmation of a downtrend comes when the euro plunges through its 200 DMA, now at $1.3243. That should come quickly.

Yen looked like it had been taking castor oil, too. Gapped down, lost 0.62%, and closed at 101.77 cents/Y100. Worse yet, it closed right on the bottom boundary of its uptrend channel and right near the 50 DMA (101.42c).

Mercy, what a world where the sorry, scrofulous, scabby US dollar looks good.

With the breathtaking speed of a somnolent snail, stocks raced ahead today. Dow gained 16.44 (0.11%) to 14,840.95. S&P500 also blasted forward 3.21 (0.2%, be still, my beating heart!) to 1,638.17.

Stocks have drawn near the point where they ought to reverse and turn up. Perhaps they will rally up to, say, 15,000 on the Dow then make one last dive to 14,600. But should it keep on climbing through 15,000, we'd have to conclude a rally hath begun.

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.