Gold Price Close Today : 1,314.40
Gold Price Close 11-Oct-13 : 1,268.00
Change : 46.40 or 3.7%
Silver Price Close Today : 21.869
Silver Price Close 11-Oct-13 : 21.215
Change : 0.654 or 3.1%
Gold Silver Ratio Today : 60.103
Gold Silver Ratio 11-Oct-13 : 59.769
Change : 0.33 or 0.6%
Silver Gold Ratio : 0.01664
Silver Gold Ratio 11-Oct-13 : 0.01673
Change : -0.00009 or -0.6%
Dow in Gold Dollars : $ 242.19
Dow in Gold Dollars 11-Oct-13 : $ 248.41
Change : -$6.21 or -2.5%
Dow in Gold Ounces : 11.716
Dow in Gold Ounces 11-Oct-13 : 12.017
Change : -0.30 or -2.5%
Dow in Silver Ounces : 704.18
Dow in Silver Ounces 11-Oct-13 : 718.22
Change : -14.05 or -2.0%
Dow Industrial : 15,399.65
Dow Industrial 11-Oct-13 : 15,237.11
Change : 162.54 or 1.1%
S&P 500 : 1,744.50
S&P 500 11-Oct-13 : 1,703.20
Change : 41.30 or 2.4%
US Dollar Index : 79.634
US Dollar Index 11-Oct-13 : 80.426
Change : -0.792 or -1.0%
Platinum Price Close Today : 1,434.80
Platinum Price Close 11-Oct-13 : 1,372.90
Change : 61.90 or 4.5%
Palladium Price Close Today : 739.65
Palladium Price Close 11-Oct-13 : 713.05
Change : 26.60 or 3.7%
The GOLD PRICE gave back $8.30 of yesterday's dramatic $40.70 gain and closed Comex at $1,314.40. Silver coughed up 3.4 cents of yesterday's 58.3 cent gain for a 2186.9c close. Still, yesterday's gains powerfully confirmed the Key Reversal on Tuesday and left both silver and GOLD PRICES above their 20 day moving averages, first tripwire of upward momentum.
Behold, both silver and gold prices have also formed bullish falling wedge patterns, and yesterday's surge released them on their own recognizance ("broke them out") of that pattern. Unless contradicted by closes below 2090 and 1872, we have to assume that silver and gold prices are rallying.
If they close below those points, both will revisit the June lows.
Up above, for all its pep the SILVER PRICE has not been able to close above 2200c and stay there. Now silver must show its cards or fold, rising above 2200c and 2250c (50 DMA is at 2245c) in short order. Gold must confirm a rally by closing above $1,332 as the first step of an advance. 50 DMA awaits then at $1,343.
Gold price rose 3.7% for the week, silver 3.1%. Respectable, but the weekly charts still show both below their 20 week moving averages. GOLD/SILVER RATIO is behaving by not rising, but I would like to see silver outpacing gold.
Sure enough, when the cloud of the debt-ceiling kerfuffle passed over the market, stocks rose and the dollar fell. Surprising the Great and Mighty, silver and GOLD PRICES took that news quite well, thank you very much. By the way, the debt-ceiling deal changed nothing, reformed nothing, cured nothing. Federal government spending remains out of control, and federal debt has grown so large it will never be paid. Default is certain, only the date is uncertain. The yankee government will either repudiate the debt outright or inflate it away. Right now, they're inflating it away, and that will continue. If you think "This will never happen -- the dollar is the world's reserve currency!" or "America has the world's strongest economy," well, you just keep thinking that, and wait for reality to catch up with your error.
Stocks indices argued yesterday but got in line today. Dow gained 28 (0.18%) for a 15,399.65 close. S&P500 rose 11.35 (0.65%) to 1,744.50. S&P500 gapped up and made another all -time high, punching barely through the overhead trend line. Dow remains 300 points below its overhead trendline.
S&P500 could spurt further still, but odds are against much more rise here. It has formed a rising wedge from which it will most likely fall down. Right now it's going higher because -- its price is rising. In other words, it's a mania. I looked at Google today, which just rose above $1,000/share. It's price/earnings ratio is 29.15, another way of saying it would pay back your principle in 29.15 years. Or it pays a 0.25% return roughly. Whoa! That's not "dividend yield," because Google pays NO dividend.
This is a greater fool market — "Buy because prices are rising."
By the way, some folks believe that inflation will also help stocks. Constantino Bresciani-Turroni wrote The Economics of Inflation examining the German hyperinflation. He found that stocks did not keep pace with inflation.
Dow in gold and Dow in silver both fell for the week, but rose a tiny bit today. Dow in silver ended the week at 704.18 oz, down 2% for the week. Dow in gold closed 11.716, down 2.5% this week. Both indicators are still locked in a downtrend, good news for silver and gold investors. Need to see them close below their 20 DMAs,
now at 699.74 oz and 11.60.
US dollar index is flirting with the 79.60-ish area that forms the lip of a cliff. Should it fall over that, it won't land before 73. Lost 0.7% today, 5.1 basis points, to 79.634.
Euro rose slightly, 0.85 to $1.3687. Put yourself in the place of the European Nice Government Men, manipulating the euro. Would you really want your currency to rise against the dollar, pricing your goods out of markets around the world and opening the door to cheaper US goods? Maybe the deal's been struck with the US NGM to let the euro rise and dollar fall, but why? Sooner or later that tight shoe will begin to pinch.
Yen rose 0.16 today to 102.32. Nipponese NGM doing their best to keep it steady, regardless what the dollar does.
All this explains why I wouldn't buy any scrofulous fiat currencies even with y'all's money. Game is wholly rigged, and they're playing "competitive devaluation."
I saw an internet dust-up today about JP Morgan Chase Bank informing its customers it would limit cash withdrawals to $50,000/month and limit overseas wires. Various voices found in this harbingers of exchange controls and other tyrannies. Might be, but I have to ask, Why would you leave your money in JPM anyway? Do you simply enjoy feeding your enemy? Why not put your money in a small bank you might be able to trust at least a little? And besides, why don't you have at least three months' cash needs in a safe place OUTside the banking system anyway? As Catherine Fitts says, "Come clean!" Stop leaving your money in the banks that are destroying you and your country.
Y'all enjoy your weekend!
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.