Gold Price Close Today : 1335.90
Change : 19.90 or 1.51%
Silver Price Close Today : 21.838
Change : 0.299 or 1.39%
Gold Silver Ratio Today : 61.173
Change : 0.075 or 0.12%
Silver Gold Ratio Today : 0.01635
Change : -0.000020 or -0.12%
Platinum Price Close Today : 1428.80
Change : 10.00 or 0.70%
Palladium Price Close Today : 724.20
Change : 5.85 or 0.81%
S&P 500 : 1,692.77
Change : -4.65 or -0.27%
Dow In GOLD$ : $236.34
Change : $ (4.54) or -1.88%
Dow in GOLD oz : 11.433
Change : -0.219 or -1.88%
Dow in SILVER oz : 699.39
Change : -12.56 or -1.76%
Dow Industrial : 15,273.26
Change : -61.33 or -0.40%
US Dollar Index : 80.342
Change : -0.251 or -0.31%
The GOLD PRICE rose sharply today and felt like it was dragging silver with it. I say that because the GOLD/SILVER RATIO actually rose from 61.098 to 61.173 today.
The GOLD PRICE popped up $19.09 (1.5%) to $1,335.90, taking it through a band of resistance that stretches from $1,325 to $1,332. Today also positions the gold price to cross above its 50 DMA (now 1,344.90) tomorrow, or, better yet, $1,350 resistance.
None of this availeth much, however, unless gold jumps through the last high at $1,375.40, then follows through by conquering the August high at $1,434.00.
So far, gold is confirming my suspicions that it has a secret intention not to drop further. That would change if gold traded below $1,305.
The SILVER PRICE jumped 29.9 cents (1.4%) to close at 2183.8 cents on Comex. This is encouraging, this is snappy, this takes silver above its 50 DMA (2181c), but this was not a close above 2200c, or the last high at 2344c. Silver must show us more power.
On the other hand, though, it held nicely above 2130c, and has formed an embryonic uptrend. One strong day would attract buyers like free beer attracts moochers.
Y'all aren't flattering and deluding yourselves that somehow the system will muddle through this chronic financial and economic crisis, are y'all? It won't. The unthinkable WILL happen. Only two outcomes are possible, (1) default or (2) hyperinflation. In no other way can the colossal government debt (and all the rest of the debt) be dealt with. The longer you ponder it, the stronger and more ineluctable becomes this conclusion.
If you are deluding yourself that somehow or other the government-banking cartel can make good on its promises to you -- healthcare, social security, cheap loans, unending prosperity, the good life and the American dream -- you are fooling only yourself, and you will bear the eventual consequences.
Y'all ought to start IMMEDIATELY reducing toward zero your dependence on government and the financial system. If you have debt, give your eyes no rest until it is paid off. Cut up and throw away your credit cards. Learn to admire people who wisely drive used cars instead of accepting debt slavery to buy a new car to look good. Kick in your TV set, get to know your own family and neighbors. Spend time with them and ditch you addiction to digital devices and virtual socializing. Plant a garden. Use cash instead of leaving your money with the banks to use as they will to feed off you and destroy society. Most importantly, start building a future that secures your source of revenue and frees it from the banking system. Oh, buy or develop productive assets, and silver and gold, whose value doesn’t depend on government or banking.
One way or the other, sooner or later, the system will hit the wall in default or hyperinflation. No other exit. Start building the new economy now.
Meanwhile, the farce continues in Washington, propaganda to keep the public hovering always between hope and despair, off-balanced and confused, while the end is plain from the beginning. Congress will vote to raise the debt ceiling, because congress can do nothing else. Survival of the system -- and their jobs -- depends on more borrowing and spending, so they will. The system must borrow or die and inflate or die, and as Joseph Stalin said, "Ruling classes never leave the stage of history voluntarily."
The drama, however, is unsettling stock and currency markets. US dollar index lost 25.1 basis points (0.32%), a sizeable but not extraordinary move. Dollar index now has a floor of support about 80.30. Puncturing that would flatten the dollars tires and send it lower. Critical is the 79.50 level, beneath which lieth only air.
Euro bounced back today on the dollar's woes. Rose 0.41% to $1.3527, but still looks none too ready to climb.
Yen closed 101.57 cents/Y100, up 0.29%. Yen managed to close above its 50 DMA (101.41) today, and the short term downtrend line, but who can picture that the Japanese Nice Government Men who have so diligently wrecked the yen these long months would now let it climb? Unlikely.
The congressional fiasco continues to sap stock market morale. S&P500 and Dow fell for the fifth straight day. Dow closed below its 50 DMA. No change peeking out here.
Dow in gold dropped 1.88% today to 11.433 oz (G$236.34 gold dollars). Dow in silver fell below 700 oz, down 12.56 oz (1.76%0 to 699.39 oz.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
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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.
