Thursday, November 07, 2013

Silver and Gold Prices Held Support with the Gold Price Closing at $1,308.40

Gold Price Close Today : 1308.40
Change : -9.30 or -0.71%

Silver Price Close Today : 21.639
Change : -0.107 or -0.49%

Gold Silver Ratio Today : 60.465
Change : -0.130 or -0.21%

Silver Gold Ratio Today : 0.01654
Change : 0.000036 or 0.22%

Platinum Price Close Today : 1455.00
Change : -10.60 or -0.72%

Palladium Price Close Today : 758.60
Change : -5.70 or -0.75%

S&P 500 : 1,747.15
Change : -23.34 or -1.32%

Dow In GOLD$ : $246.37
Change : $ (0.66) or -0.27%

Dow in GOLD oz : 11.918
Change : -0.032 or -0.27%

Dow in SILVER oz : 720.64
Change : -3.49 or -0.48%

Dow Industrial : 15,593.98
Change : -152.90 or -0.97%

US Dollar Index : 80.850
Change : 0.360 or 0.45%

What did the silver and GOLD PRICES do today? Well, for all the bubbling and bloviating about the higher dollar, they did no more than fall back to the bottom of the same range they've been trading in for more than a week.

Think about those stock index losses today when you consider that silver fell only 0.5% or 10.7 cents to 2163.9 while the GOLD PRICE fell 0.7% or $9.30 to $1,308.40.

Do those numbers sound familiar? Well, I'll be durned. The gold price gained $9.70 yesterday, and lost $9,30 today, and closed near $1,308 again. The SILVER PRICE lost 10.7c today and gained 13.2c yesterday, and is right hear around 2160c again.

But take this home: they did not break that support today. They held. Both did sort of puncture my uptrend line, but closed right at it. Pretty good, all things considered.

All this monetary folly, this criminal lunacy, will not end well. It's liable to break out in a hyperinflation, and whatever happens the US government will default and after the dust settles, the dollar won't be the reserve of anything anymore.

Only protection I know is to convert US dollars to silver and gold. But what do I know? I'm only a natural born durn'd fool from Tennessee. What am I compared to all them Harvard and New York smarties that have never turned a peg or earned a paycheck a day in their lives? Why, I'm so durned ignerunt I can't even understand how they make anvils fly.

Every time I look at the stock market, I feel like a tee-totaling celibate at a Roman orgy: I just don't see nothing that interests me.

Yesterday I mentioned that the stock index choir was singing out of tune, Dow making new highs and other indices down. Well, today they puked all over their choir robes, to wit:

Dow lost 152.90 or 0.97% to 15,593.98

S&P500 lost 23.34 or 1.32% to 1,747.15

Nasdaq lost 74.62 or 1,90% to 3,857.33

Nasdaq 100 lost 63.97 or 1.89% to 3,321.41

Russell 2000 lost 19.54 or 1.78% to 1,079.09.

Wilshire 5000 lost 276.11 or 1.47% to 18,548.79.

You all can brag about your outsized stock gains and all the pointy-shoe types on Wall Street can puff out their chests, but this market is floating on hot money, not economic outlook, and is as nervous as a lame mouse at a cat convention. And it will probably get worse tomorrow.

Andith the twisted logic of a basement full of mouth-foaming, hair-tearing lunatics, reported US GDP rose today and sent the dollar shooting up. Now think about that: back in July the yankee government announced it was "revising" the way it figures GDP, which being translated is, "we're jimmying the numbers so you oafs won't realize how badly we are shafting you." There's only one way you can tell a government spokesman is lying: are his lips moving? GDP numbers have now become as deceptive and meaningless as unemployment numbers or government deficit projections or Viet Nam war casualty reports.

Anyway, the press spun it this way: if GDP improves, the Fed can "taper" sooner and stop injecting so much hot new money. Tennessee hogwash. They've got the stock market and economy so addicted to Quantitative Easing right now there's no way they can stop. No way. Remember, I said it, and you can quote me. Write it on the wall, hoping you can get to rub my nose in it later. You won't.

The very thought of Fed tapering today gave the entire stock market world the wastebasket heaves.

Add to this panic the ECB which lowered its interest rate today to a number nearer zero than it already was: 0.25%. Dollar index jumped to 80.85, up 36 basis points or 0.45%, and it pushed the euro off a cliff. Literally. Euro dropped 0.73% to $1.3416, headed for its 200 Dma ($1.3231) and further infamy and humiliation. After all, the Europeans have the world's second most over-indebted and putrescent economy and most rotten banks (after Japan), and their currency now pays no more interest than the US dollar. What I can't parse because there's something I'm not seeing is that the yen reversed mightily upward, gaining 0.61% to 101.96 cents/Y100, with a high not far from the 102.60 200 DMA. I don't know what drove the yen higher and I don't care, since I wouldn't buy yen with YOUR money.

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.