Tuesday, September 17, 2013

The Gold Price Lost $8.40 to Close at $1,309.50 while Silver Closed Down at $21.73

Gold Price Close Today : 1309.50
Change : -8.40 or -0.64%

Silver Price Close Today : 21.735
Change : -0.228 or -1.04%

Gold Silver Ratio Today : 60.248
Change : 0.243 or 0.40%

Silver Gold Ratio Today : 0.01660
Change : -0.000067 or -0.40%

Platinum Price Close Today : 1421.80
Change : -18.80 or -1.31%

Palladium Price Close Today : 705.25
Change : 0.95 or 0.13%

S&P 500 : 1,704.76
Change : 7.16 or 0.42%

Dow In GOLD$ : $245.15
Change : $ 2.11 or 0.87%

Dow in GOLD oz : 11.859
Change : 0.102 or 0.87%

Dow in SILVER oz : 714.50
Change : 9.01 or 1.28%

Dow Industrial : 15,529.73
Change : 34.95 or 0.23%

US Dollar Index : 81.260
Change : 0.187 or 0.23%

The GOLD PRICE misplaced $8.40 and closed at $1,309.50 while the SILVER PRICE lost 22.8 cents to end at 2173.5 cents. Problem is not so much they're breaking down as they give no evidence of turning up.

We're just stuck here, waiting to see whether they will catch and hold at the necklines (about $1,300 for gold and about 2165c). If they break those levels, the GOLD PRICE will drop to $1,280 or lower, silver to 2000c or lower. "Or lower" means back to or past the June lows at 1817c and $1,180.

Y'all raise your eyes back up to the horizon: this decline will end before October ends. If it makes a lower low than 27 June, that will mark the end of the 2011-2013 correction. If it makes a higher low, that will confirm the 27 June posting as the low. Either way, silver and gold prices will begin moving up, and -- y'all listen now -- will gain more from here than they have gained through the whole life of this bull market.

Long as an alcoholic can still manage to buy more booze, everything's rosy. Doesn't matter that his marriage is tanking, his job's shaky, his friends have dropped him, as long as the booze flows, he's okay.

And while the worlds greatest alcoholic, the US government, careens lurches toward the gutter, there's still good news: Price-cutter Janet Yellen is about to open another liquor store, so the supply of new booze/new money will keep on streaming.

Reality lies nowhere on the horizon of these people. It's like people who live next door to a paper mill. The smell would kill any stranger, but they've lived with it so long they can't even smell anything bad.

Interesting -- the Dow and the S&P500 are right close to their all time highs, but the Dow in Gold and Dow in Silver stand significantly below their highs. Dow in gold today closed 11.859 oz (G$245.14 gold dollars, up 0.87%) against a 27 June 2013 high of 12.51 oz. Dow in silver ended at 714.50 oz (up 9.01 oz or 1.28%) against an end-June high of 816.77 oz. That's right, silver has been much stronger than gold.

Dow closed today at 15,529.73, up 34.95 or 0.23%. S&P500 gained 7.16 (0.42%) to 1,704.76. Got the bit between their teeth and running away!

I missed noting yesterday that the US dollar index gapped down, below that uptrend line from a May 2011 low. If I were a Roman haruspex, I would say this sheep had a very ugly liver. That trend line forms the bottom of a long rising wedge, which points ultimately to a downward outcome for the dollar. Has the time come?

This tumble has delighted the euro, which closed today at $1.3359, up 0.15%. Barrier stands at top of the range about $1.3450.

Yen fell 0.07% today to close 100.88 cents/Y100. Beneath its 20 and 50 day moving averages, and the 20 just crossed beneath the 50. As those bearers used to say in the old Tarzan movies when they heard the war drums throbbing through the jungle, "Bad juju, bwana."

On 17 September 2008 fell the house of Lehman Brothers, precipitating the Great Financial Panic of 2008. 'Tain't over yet.

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.