Friday, August 30, 2013

Silver and Gold Prices Completed the First Furious Leg of their Rally

Gold Price Close Today : 1,396.10
Gold Price Close 23-Aug-13 : 1,395.70
Change : 0.40 or 0.0%

Silver Price Close Today : 23.463
Silver Price Close 23-Aug-13 : 23.73
Change : -0.267 or -1.1%

Gold Silver Ratio Today : 59.502
Gold Silver Ratio 23-Aug-13 : 58.816
Change : 0.69 or 1.2%

Silver Gold Ratio : 0.01681
Silver Gold Ratio 23-Aug-13 : 0.01700
Change : -0.00020 or -1.2%

Dow in Gold Dollars : $ 219.29
Dow in Gold Dollars 23-Aug-13 : $ 222.32
Change : -$3.03 or -1.4%

Dow in Gold Ounces : 10.608
Dow in Gold Ounces 23-Aug-13 : 10.755
Change : -0.15 or -1.4%

Dow in Silver Ounces : 631.22
Dow in Silver Ounces 23-Aug-13 : 632.55
Change : -1.33 or -0.2%

Dow Industrial : 14,810.31
Dow Industrial 23-Aug-13 : 15,010.51
Change : -200.20 or -1.3%

S&P 500 : 1,632.97
S&P 500 23-Aug-13 : 1,663.50
Change : -30.53 or -1.8%

US Dollar Index : 82.065
US Dollar Index 23-Aug-13 : 81.361
Change : 0.704 or 0.9%

Platinum Price Close Today : 1,526.20
Platinum Price Close 23-Aug-13 : 1,540.70
Change : -14.50 or -0.9%

Palladium Price Close Today : 722.10
Palladium Price Close 23-Aug-13 : 750.35
Change : -28.25 or -3.8%

Silver and GOLD PRICES completed the first furious leg of their rally this week and began a little correction. Today gold dropped $16.80 to $1,396.10, yes, below $1,400. Silver lost 62.7 cents to end Comex at 2346.3 cents.

As long as the GOLD PRICE remain above $1,350 (most likely target for this correction) and the SILVER PRICE above 2200c, metals remain in rally mode, and that is what I expect. Very small chance exists that they might make one final leg down as low as the June lows, but I don't expect that. All the same, humility requires that I mention it.

'Twasn't much of a week for stocks, down 1.3% and 1.8%. Dollar index probably turned up this week. Dow in Gold and Dow in Silver probably are bouncing because they are striking their long term downtrend lines (strong resistance usually needs more than one attack to break). Platinum lost 0.9% while palladium took a beating, giving up 3.8%.

Stocks have probably about finished their correction and are turning up for one last rally before crashing. Closes below 14,600 or 1,590 would contradict that outlook and argue that the end of this rally from last November has ended.

Today the Dow lost 30.64 (0.21%) to end at 14,810.31. S&P500 shaved off 5.2 (0.32%) to 1,632.97.

Dow in Gold and Dow in Silver both hit and pierced their long term downtrend lines this week. It was predictable that they would bounce off it before continuing lower. Dow in gold rose 1% today to G$219.29 gold dollars (10.608 oz). Dow in Silver rose 15.16 oz or 2.5% to 631.22 oz. Don’t mistake what I mean: both have turned down AND confirmed the downturn. This upward motion is only correcting the long fall we've recently seen, but they don't contradict my interpretation that the Dow measured in metals have both reversed gravityward.

US dollar index at last broke through 82 to end at 82.065, up 0.08%, above the 20 DMA and 200 DMA and touching the 50 DMA. Momentum now points up.

Mercy! Y'all ought to rejoice and dance that y'all don't own any of those nasty euros. They sank another 0.18% today to $1.3215. 200 DMA stands below at $1.3132, and when the euro breaches it, its downward speed will increase with the square of the ECB's stupidity

Yen hangeth on by its fingernails. Rose 0.17% today to 101.84 cents/Y100, but it's a lost cause, about to drop out of its intermediate upward trading channel. Has a future as bright as Constantinople in 1452.

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.