Gold Price Close Today : 1334.70
Change : 21.80 or 1.66%
Silver Price Close Today : 21.333
Change : 0.934 or 4.58%
Gold Silver Ratio Today : 62.565
Change : -1.796 or -2.79%
Silver Gold Ratio Today : 0.01598
Change : 0.000446 or 2.87%
Platinum Price Close Today : 1499.70
Change : -1.90 or -0.13%
Palladium Price Close Today : 740.10
Change : -3.40 or -0.46%
S&P 500 : 1,689.47
Change : -1.95 or -0.12%
Dow In GOLD$ : $238.82
Change : $ (4.06) or -1.67%
Dow in GOLD oz : 11.553
Change : -0.196 or -1.67%
Dow in SILVER oz : 722.81
Change : -33.38 or -4.41%
Dow Industrial : 15,419.68
Change : -5.85 or -0.04%
US Dollar Index : 81.343
Change : 0.099 or 0.12%
The GOLD PRICE today broke clean above the 50 and 20 DMAs (1312.51 and 1311.95) and above the May downtrend line. Only tiny cloud on this horizon is that gold has not yet cleared the $1,350 resistance. Once it does that, 'twill jump $75 right fast.
The SILVER PRICE today pole-vaulted 93.4 cents (4.5%) to close Comex at 2133.3c. Whew! The GOLD PRICE leapt $21.80 (1.7%) to $1,334.70. I mentioned Friday gold was liable to pop fast once it got through $1,325, but it didn't even need that. It gapped up today. Low was $1,324.81 against Friday's $1,313.10 high. I also noted that silver could zip like a roadrunner, and zip it did.
Get your bearings. Silver gapped up today ABOVE the 50 DMA (2029c), ABOVE the May downtrend line. right at 2133 resistance. Rallies start this way. More: strong rallies start with silver leading the way. Whoa. I forgot to mention silver also cleared its July high.
Years ago I read a book called conceptual blockbusting. People think in conceptual pigeonholes that blind them to ideas for which they have no pigeonholes. Worse yet, self-deception kicks in if the idea threatens the whole framework of pigeonholes.
That's one reason the mainstream investment community and Wall Street hate gold and silver. The rational for investing in them begins with confessing that the financial and monetary system is unstable, an idea so inconceivable, so threatening to their livelihood and way of life that they suppress it -- simply refuse to face it as a possibility.
Hence, they don't get it. And you can't explain it to them. Lots of folks are that way -- NO WAY the dollar might ever lose its reserve status, much less evaporate. Only if you suppress all the facts, specifically the chronic insolvency of the yankee government and its suicide pack with too-big-to-fail banks and corporations, can you keep on believing that.
Anyhow, they're about to miss it again, as silver and gold's long correction appears to have ended. (Remember, everything I say is always conditioned on NOT being gainsaid by later price movements.) Large and small speculators have large short positions, commercial interests small ones -- dumb money short, smart money long. About the time gold crosses above, oh, $1,350 the short covering panic will start, and really kick into high gear about $1,425. Nothing drives a rally like a short covering panic, because panicked shorts will buy at any price to cover their position and stop the bleeding.
But mercy! What do I know, me, no more'n a natural born fool from Tennessee? Why, I still believe in gravity. Honesty, even.
Stocks eroded sideways to lower. Dow lost 5.83 to 15,419.68 and S&P500 lost 1.95 to 1,689.47.
Yea, but look at the Dow measured in silver and gold, O, behold! Only thing worse than having to listen to somebody say "I told you so" is having to listen to me saying, "I told y'all so." Resist I cannot.
Dow in gold dropped 1.67% to 11.553 (G$238.82 gold dollars), below the 20 and the 50 DMA (11.84 and 11.65oz).
The Dow in silver plumb pulled the plug today. Closed down 4.41%, 33.38 oz. lower at 722.81 oz. Sliced through the 50 DMA at 755. 12 day rate of change at -6.26% is reaching for a new low. The rout waxeth general.
US dollar index rose 9.9 basis points (0.13%) to 81.343. In danger of falling to 79.5. Only thing that looks puking sicker today is the euro, down 0.31%, gapped down indeed, leaving what might be an island reversal behind. Bowing to gravity at $1.3302. Yen lost 0.61% to 103.3 cents/Y100. Rallying probably, but I wouldn't buy that nasty thing. It'll bite ya.
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.