Gold Price Close Today : 1320.60
Change : 34.60 or 2.69%
Silver Price Close Today : 21.846
Change : 0.722 or 3.42%
Gold Silver Ratio Today : 60.450
Change : -0.428 or -0.70%
Silver Gold Ratio Today : 0.01654
Change : 0.000116 or 0.71%
Platinum Price Close Today : 1389.80
Change : 8.10 or 0.59%
Palladium Price Close Today : 720.20
Change : 2.30 or 0.32%
S&P 500 : 1,693.87
Change : -1.13 or -0.07%
Dow In GOLD$ : $236.88
Change : $ (7.31) or -3.00%
Dow in GOLD oz : 11.459
Change : -0.354 or -3.00%
Dow in SILVER oz : 692.72
Change : -26.45 or -3.68%
Dow Industrial : 15,133.14
Change : -58.56 or -0.39%
US Dollar Index : 79.903
Change : -0.277 or -0.35%
Today silver and GOLD PRICES reversed yesterday's downward reversal. I would chortle and gloat and grin, but y'all would see the crow feathers between my teeth left there from having to eat so much crow so often before. Just leave it as "my suspicions of strength in silver and gold yesterday were confirmed today."
HOWEVER, both metals need to improve today's gains immediately. No jacking around, coughing and dilly-dallying, get moving.
The GOLD PRICE re-took $34.60 and jumped through 2 resistance levels to close at $1,320.60. Silver bounced 72.2 cents and closed at 2184.6c.
These closes take both silver and gold prices barely back above their short term uptrend lines. The SILVER PRICE touched its 50 DMA but closed below it, gold is still reaching for its 20 DMA ($1,338.63), which flashed the bad juju of crossing below the 50 DMA two days ago. A lot of weight is pushing against silver and gold, but there are whispers of better things to come soon, not the least of those today's strong reversals. Y'all recall that you saw similar action (sharp reversal) at the June lows. Also, gold posted the first half of a key reversal today -- break into new low territory for the move with a higher close on the day -- but must confirm that tomorrow with a higher close. Now THAT would be a strong sign.
Y'all be patient. Two of the world's most powerful forces, the Federal Reserve and the yankee government, are on gold and silver's side, and are bound to keep on driving 'em higher.
Beware numismatic coin dealers. There are indeed honest numismatic coin dealers (I know some) and collecting coins is a wonderful pastime. However, numismatic coins are generally very poor investments as gold and silver, because they UNDERperform simple bullion items. Beware especially large firms, firms that advertise heavily, firms that use boiler room salesmen, firms that advertise their religion, and salesmen who push numismatics as protection against gold confiscation (will never happen, this is not 1934) or tell you numismatics are "not reportable." These people mark up coins 45% or more over wholesale so they can pay the salesman a 25% commission. When you buy, you are behind the eight ball because gold has to rise at least 35% for you to break even. With bullion items you pay a 3-1/2% to 1.5% commission, and your entire transaction cost is covered when silver or gold rise only 10%. I have seen too many innocent people robbed by these numismatic firms, so you'd better watch out for yourselves.
Now to today's markets.
US dollar index finally broke 80 today, and ended down 27.7 basis points (0.36%) at 79.903, near the day's low. News reports had a picture of ECB head criminal Mario Draghi smirking like a jailhouse rat with numbers under his chin. ECB equivalent of the FOMC voted to keep the refinancing rate unchanged, and Draghi commented that he would use all sorts of measure to "battle weak growth and high unemployment." This boils down virtually to guaranteeing that the ECB will inflate more and further depreciate the euro, but illogical as it is, the euro rose 0.43% to $1.3585. It gets worse: deeper you dig, the more corpses you find buried in Euroland. Hard as it is to fathom, their banks are even rottener than US banks. Yen rose 0.72% to 102.74 cents/Y100.
Y'all remember this about markets: sudden reversals, especially sudden reversals back to back, mean something. Your job is to figure out what.
Dow in Gold and Dow in Silver reversed sharply upward yesterday, then today reversed just as sharply down. Message? 'Tain't strong enough to make good on the threat.
Stocks weren't as dramatic in nominal terms as they were in metal terms, but they couldn't make good on yesterday's rise, either. Dow gave back 58.56 (0.39%) to 15,133.14, while the S&P500 scraped off 1.13 (0.7%) to 1693.87. They aim to drop further.
On 2 October 1980 my third son (of 5) and fourth child (of 7) was born, Wright -- all thanks and praise to God.
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.