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Thursday, September 05, 2013

Silver and Gold Prices Are Correcting Offering a Great Chance to Buy

Gold Price Close Today : 1,373.10
Gold Price Close 30-Aug-13 : 1,396.10
Change : -23.00 or -1.6%

Silver Price Close Today : 23.206
Silver Price Close 30-Aug-13 : 23.463
Change : -0.257 or -1.1%

Gold Silver Ratio Today : 59.170
Gold Silver Ratio 30-Aug-13 : 59.502
Change : -0.33 or -0.6%

Silver Gold Ratio : 0.01690
Silver Gold Ratio 30-Aug-13 : 0.01681
Change : 0.00009 or 0.6%

Dow in Gold Dollars : $ 224.88
Dow in Gold Dollars 30-Aug-13 : $ 219.29
Change : $5.59 or 2.5%

Dow in Gold Ounces : 10.879
Dow in Gold Ounces 30-Aug-13 : 10.608
Change : 0.27 or 2.5%

Dow in Silver Ounces : 643.69
Dow in Silver Ounces 30-Aug-13 : 631.22
Change : 12.47 or 2.0%

Dow Industrial : 14,937.48
Dow Industrial 30-Aug-13 : 14,810.31
Change : 127.17 or 0.9%

S&P 500 : 1,655.08
S&P 500 30-Aug-13 : 1,632.97
Change : 22.11 or 1.4%

US Dollar Index : 82.643
US Dollar Index 30-Aug-13 : 82.065
Change : 0.578 or 0.7%

Platinum Price Close Today : 1,481.20
Platinum Price Close 30-Aug-13 : 1,526.20
Change : -45.00 or -2.9%

Palladium Price Close Today : 685.80
Palladium Price Close 30-Aug-13 : 722.10
Change : -36.30 or -5.0%

Silver and GOLD PRICES are correcting, but looking back a week haven't lost much of their gains. Stocks have turned up -- maybe. Dollar index has gained ground, while platinum and palladium have been whipped with barbed wire.

Silver and gold prices slowed their speed of descent today. SILVER dropped 16.3 cents (0.7%) to 2320.6c. Gold lost another 1.2% or $16.80 to $1,373.10.

For now I'm assuming silver and gold are correcting only their strong rally from early August, and once this is finished, will continue rallying toward $1,550 and 2700c before a larger degree rally sets in.

The GOLD PRICE rise from $1,271.80 to $1,434 equals $162.20. Today's gold low at $1,366.73 corrects 41.5% of that rise. Yep, enough to satisfy but a 50% correction would take it to $1,352.90.

Silver rose from 1910c to 2512c or 602c (whoa! 31.5% off that low). Today's 2316c low corrects 32.6% of that rise, which might satisfy a correction. However, a 50% correction would reach 2211c. More likely in my eyes would be 2255c.

If the silver or gold price close below $1,340 and 2200c, I'd have to re-think it all. Otherwise, I'll stick with that outlook.

Right -- this correction offers you yet another chance to buy silver and gold on the cheap. Better grab it. I believe that the last low of the 2011 - 2013 correction fell on 27 June, and that the 2011-2013 correction was analogous to the 1974-1976 correction. From those lows gold gained 850% and silver 1,250%.

Right nearly takes your breath away, don't it?

It must be rotten being a central banker. Everything threatens always to blow apart.

In the US the student loan bubble is starting to burst. US's largest bank, J.P. Morgan Chase has notified colleges that they will stop making new student loans in October. Sort of like the subprime shutdown in 2007.

As if that weren't bad enough, poor old Super Mario Draghi, ECB head criminal, has found that Samson's weapon no longer works on European banks to suppress interest rates. Mario has threatened and blustered and promised to keep rates low, but banks have the interest rate back where it was when he started. All the jawboning and keeping the interbank rate low, well, tain't working.

Stocks today nearly reached the limit of this little rally off the bottom, namely, their short term downtrend line. This hits the Dow about 15,000 and the S&P500 around 1,665. They'll likely hit that line and react back a little, but for right now, and barring closes below 1627 and 14,760, should continue to one last peak before they dive into the abyss later this year.

Dow in metals are both correcting, reaching up after their long plunge toward the 20 or 50 day moving averages, then to dive again.

Dow in gold jumped up 1.3% to 10.879 oz (G$224.88 gold dollars). Long term downtrend today lies beneath about 10.50 oz. Dow in silver rose 0.7% or 4.77 oz to close 643.69 ounces. Long term downtrend line today stands about 610 oz. After throwing over the long term downtrend lines in May, both are now sinking beneath it again. Not surprising they should need two tries to crack that wall.

US dollar index has climbed out of danger of revisiting 79 any time soon. Closed today up 0.62% or 47.9 basis points at 82.643 -- above its 20 and 50 DMAs, so momentum is upward.

Euro and yen both look like they've been sipping strychnine. Yen closed at 99.89 cents/Y100, down 0.36% and falling toward -- well, wherever the Japanese Nice Government Men decide it ought to fall toward. They are so NICE -- not too bright, but nice. All NGM world over SMILE as they hold a gun to your head.

Euro has buckled on its concrete overshoes and jumped off the Brooklyn Bridge. Closed at $1,3118 today, down 0.66% and below its $1.3139 200 DMA. Can anybody say "targeting $1.2800"?

More bad news for Ben the Bloviator and Chief Criminal at the Fed: Ten year treasury note yield today hit a new high for the move, 2.979, up 2.83% today. O Zero Interest Rate Policy, where art thou?

Y'all listen now, this is not a joke. If the bond bubble Ben blew up with his stupid ZIRP bursts, O, mercy! Many will be ruined.

Yes, you can put precious metals into an IRA, and this IS the time to swap stocks for silver and gold. For more information, contact New Direction IRA at www.newdirectionira.com. We don't get a commission or kickback for recommending New Direction, but if you put us down as your dealer, we will earn a commission when you buy gold or silver. For precious metals IRA holders, I highly recommend our gold/silver swapping strategy. Read http://the-moneychanger.com/articles/why_silver_will_outperform_gold_400
If you already have a precious metals IRA and aren't satisfied with your present custodian, transfer it to New Direction. Tell them The Moneychanger sent you.

Tomorrow I am leaving for a week's vacation with my family so I won't be publishing another commentary until 16 September, unless something really excites me.

Y'all enjoy your weekend!

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com
1-888-218-9226
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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.