Monday, September 30, 2013

The Gold Price Lost $11.90 Closing at $1,326.50

Gold Price Close Today : 1326.50
Change : -11.90 or -0.89%

Silver Price Close Today : 21.656
Change : -0.127 or -0.58%

Gold Silver Ratio Today : 61.253
Change : -0.189 or -0.31%

Silver Gold Ratio Today : 0.01633
Change : 0.000050 or 0.31%

Platinum Price Close Today : 1408.10
Change : -6.80 or -0.48%

Palladium Price Close Today : 726.15
Change : -4.65 or -0.64%

S&P 500 : 1,681.55
Change : -10.20 or -0.60%

Dow In GOLD$ : $235.78
Change : $ 0.11 or 0.05%

Dow in GOLD oz : 11.406
Change : 0.005 or 0.05%

Dow in SILVER oz : 698.64
Change : -1.83 or -0.26%

Dow Industrial : 15,129.67
Change : -128.57 or -0.84%

US Dollar Index : 80.218
Change : -0.066 or -0.08%

Same old pendulum swing for Silver and GOLD PRICES today, in the same old trading range. The gold price lost 11.90 and ended Comex at $1,326.50. Silver gave up 12.7 cents to end at 2165.6c.

The daily highs are getting higher, and the lows higher, so there's an uptrend from the September low. Gold's 20 and 50 DMAs ($1,348.53 and $1,347.62) are nearly crossing, the 20 below the 50, which is not good, but the MACD is about to climb above zero. 12 day rate of change just turned positive but the 21 day remains negative.

Like the gold price, the SILVER PRICE has established a little uptrend, but capped just above 2200c. All other indicators speak as gold's.

For right now, silver and GOLD PRICES are just holding on, and nothing suggests they are about to rally. Gold can't pierce $1,340 and silver can't jump over 2200c. Debt ceiling mess is probably hurting metals nearly as much as stocks.

Of course, it will end positively for metals. After the puffing, blowing, and posturing, congress WILL raise the debt ceiling. They can't cut spending, and their little mouse-burp cuts amount to nothing. Wherefore, the Federal Reserve/federal government partnership will continue to inflate the dollar, depreciating it, and driving silver and gold prices higher and higher.

But when there's a big price drop like April's, people's fear drives all this out of their minds.

Markets are not rational.Y'all ask yourself this, as rational folks: Why should a government shutdown send down the stock market? Answer: Federal government spending provides more than 30% of the income in the country. Put another way, Federal government spending plus state and local government spending provide over 50% of the income in America (GDP). If I'm lying, I'm dying.

America really has no economy -- the government IS the economy. Or, only half the people in the country produce something for a living. The other half consume the taxes the others pay, plus all the money the federal government borrows into existence.

Of course, the yankee government will never pay all that debt. They cannot, just as they cannot stop spending, so the debt WILL be repudiated, either by default or by hyperinflation.

But the truth of that obvious conclusion runs so contrary to accepted wisdom -- "what everybody knows" -- that only very few can hear and accept it. People believe what they want to believe.

Stocks took a body blow today from the debt ceiling drama. Dow lost 128.57 (0.84%) to end at 15,129,67. MACD has crossed over and turned down, and the Dow has fallen way below its 50 DMA (15,280) and 20 DMA (15,269.84). RSI points down. Histogram has fallen below zero.

S&P500 wasn't much better. Lost 10.2 (0.6%) to 1,681.55, and it carries all the Dow's same negatives except it hasn't closed below its 50 DMA (1680).

At the end of the Day the Dow in Gold was slightly down, flat really, while the Dow in silver was lower by 0.26% at 698.64 oz. Still below 700 oz.

Ongoing downtrend in Dow in Gold and Dow in Silver argues that gold and silver are about to spend a long time gaining value on stocks, whether stocks rise again or not.

Currencies changed little today. US dollar index, that old charlatan, dropped 6.6 basis points (0.08%) while the Yen and Euro barely moved. Maybe all the Nice Government Men are working around the globe to manipulate currency stability. Maybe they're afraid that the sinking dollar might mess up their party and cost them their cushy jobs.

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

- Franklin Sanders, The Moneychanger

© 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 or 18 ounces of silver. or 18 ounces of silver. US $ and 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.