Friday, November 08, 2013

Silver and Gold Prices Closed Down this Week with the Gold Price Closing at $1,284.50

Gold Price Close Today : 1,284.50
Gold Price Close 1-Nov-13 : 1,313.10
Change : -28.60 or -2.2%

Silver Price Close Today : 21.307
Silver Price Close 1-Nov-13 : 21.804
Change : -0.497 or -2.3%

Gold Silver Ratio Today : 60.285
Gold Silver Ratio 1-Nov-13 : 60.223
Change : 0.06 or 0.1%

Silver Gold Ratio : 0.01659
Silver Gold Ratio 1-Nov-13 : 0.01660
Change : -0.00002 or -0.1%

Dow in Gold Dollars : $ 253.66
Dow in Gold Dollars 1-Nov-13 : $ 245.83
Change : $7.83 or 3.2%

Dow in Gold Ounces : 12.271
Dow in Gold Ounces 1-Nov-13 : 11.892
Change : 0.38 or 3.2%

Dow in Silver Ounces : 739.75
Dow in Silver Ounces 1-Nov-13 : 716.18
Change : 23.57 or 3.3%

Dow Industrial : 15,761.78
Dow Industrial 1-Nov-13 : 15,615.55
Change : 146.23 or 0.9%

S&P 500 : 1,770.61
S&P 500 1-Nov-13 : 1,761.64
Change : 8.97 or 0.5%

US Dollar Index : 81.243
US Dollar Index 1-Nov-13 : 80.723
Change : 0.520 or 0.6%

Platinum Price Close Today : 1,441.10
Platinum Price Close 1-Nov-13 : 1,449.40
Change : -8.30 or -0.6%

Palladium Price Close Today : 757.35
Palladium Price Close 1-Nov-13 : 737.70
Change : 19.65 or 2.7%

It was an aching week for silver and GOLD PRICES, while the US dollar and stocks rather enjoyed it. No market seems to have changed its mind this past week, except maybe bonds, but looks can deceive.

The GOLD PRICE lost 1.8% today ($23.90), falling to $1,284.50. Silver lost "only" 1.5% or 33.2 cents, ending at 2130.7c.

The rising trend line from the gold price $1,179.40 June low through the October $1,251 low now becomes the next target. Today that line hits about $1,265. If that doesn't hold, look at $1,180 again.

The SILVER PRICE rising trend line from the same bottoms lies today a little above 2100c. Below that, 2000c might catch, or 1900c.

To gainsay this gloomy outlook the gold price needs to close suddenly above $1,330 and the silver price above 2300c.

Both silver and gold prices have a seasonal tendency to post lows in September. Two years out of the last 14, gold has made its yearly low in November. But not once in all that time is there a December low. Lots in January.

The long bull market for the silver and gold prices has NOT ended. All the ingredients are in place to send them into their next rally. Y'all will swallow hard and swear I'm a lunatic, but you'd better use these declines as opportunities to buy more. Watch close. Stay calm. The federal government and the Federal Reserve are both on gold and silver's side.

US dollar index gained 38.7 basis points today (0.5%), climbing at last over the fence at 81. Next test for the dollar is, "Can you climb through the 200 DMA (81.78)?" It appears so. Dollar will reach for 83.00 if it bursts through the 200 DMA.

Euro lost another 0.43% today and ended at $1.3360. Bottom is dropping out. Once it crosses the 200 DMA at $1.3230 its fall will accelerate.

Yen yesterday made a strange, huge move from down to up, then reversed most of that today. Lost 1.05% to end at 100.87. NGM must be nervous, and getting sloppy, letting the yen trade like that.

US 10 year treasury note yield rose sharply today (=bond prices fell) and closed at 2.746, up 5.09% and above its 50 DMA (2.689%). Dollar rose, bonds fell? The kept and clueless media laid the blame on a better than forecast unemployment report today. They "reason" that the good unemployment report fueled speculation that the fed might taper sooner than expected. Beneath all this lies a deep anxiety that the bond bubble Ben Bernanke blew up with his Zero Interest Rate Policy might be bursting. The 10 year note broke (as did the 30 year) in June of this year. Although they have recovered some across the fall, the end and further fall shows in the chart. When this bubble bursts in earnest, they'll be playing "Hell Broke Loose in Georgia" in the bond market.

Despite strength today, I reckon stocks next week will drop after their long rise. This will be sharp and raise blisters on your eye-balls, but shouldn't carry too far. One more rise left in stocks yet. These big moves that slam and lurch from side to side show confusion, not strength. Dow today ended up 167.80 (down 152.90 yesterday) at 15,761.78. S&P500 gained 23.46 or 1.34% today after losing 23.34 yesterday. Ended at 1,770.61.

Last few days have sent the Dow in Gold and Dow in Silver much higher. I have to infer (absent a big drop contradicting) they are headed for those June highs at 12.514 oz and 816.77 oz. Ended today at 739.40 oz and 12.27 oz. Catches my eye that the Dow in Silver has not regained nearly as much territory as the Dow in Gold, showing silver is stronger against stocks than gold. Another inference from this chart guesses that silver and gold may drop toward their June lows, but silver will stop higher than June.

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.