Gold Price Close Today : 1,264.50
Gold Price Close 17-Jan-14 : 1,251.70
Change : 12.80 or 1.0%
Silver Price Close Today : 19,473
Silver Price Close 17-Jan-14 : 20,267
Change : -79.40 or -3.9%
Gold Silver Ratio Today : 64.936
Gold Silver Ratio 17-Jan-14 : 61.760
Change : 3.176 or 5.1%
Silver Gold Ratio : 0.01540
Silver Gold Ratio 17-Jan-14 : 0.01619
Change : -0.00079 or -4.9%
Dow in Gold Dollars : $ 260.29
Dow in Gold Dollars 17-Jan-14 : $ 271.81
Change : -11.52 or -4.2%
Dow in Gold Ounces : 12.592
Dow in Gold Ounces 17-Jan-14 : 13.149
Change : -0.56 or -4.2%
Dow in Silver Ounces : 817.66
Dow in Silver Ounces 17-Jan-14 : 812.09
Change : 5.57 or 0.7%
Dow Industrial : 15,922.27
Dow Industrial 17-Jan-14 : 16,458.56
Change : -536.29 or -3.3%
S&P 500 : 1,794.23
S&P 500 17-Jan-14 : 1,838.69
Change : -44.46 or -2.4%
US Dollar Index : 80.455
US Dollar Index 17-Jan-14 : 81.370
Change : -0.92 or -1.1%
Platinum Price Close Today : 1,427.10
Platinum Price Close 17-Jan-14 : 1,452.60
Change : -25.50 or -1.8%
Palladium Price Close Today : 733.90
Palladium Price Close 17-Jan-14 : 747.65
Change : -13.75 or -1.8%
What confusion in silver and GOLD PRICES! Gold rose $1.90 to $1,264.50, pennies away from a breakout above the December high at $1,267.70. This makes the fifth week gold has closed higher, longest winning streak in a long time. Great, great, but what about silver, platinum, and palladium? The SILVER PRICE dropped 24.3 cents today to close Comex at 1947.3c. GOLD/SILVER RATIO rose to 64.048. Platinum dropped $34.6 and palladium $11.10. Why are they gainsaying gold?
All this leaves the market unsettled. Gold is leading a charge, and it's all alone. Not impossible, but unusual. Picture will clear next week. I know that's unsatisfactory, but can I say more than the charts say? My instinct says that silver and GOLD PRICES will keep rising, and that silver, platinum, and palladium were pulled down by stocks today (historically silver's performance against gold is correlated closely to stocks).
What is clear? Gold is tugging at the leash to run upward, stocks have found the trapdoor in the market and fallen through. It is possible that we have seen the ultimate high for stocks, but more likely is an extended correction then one more wild rise to the ultimate high that marks the top of a 300 year cycle.
More the Moneychanger sayeth not.
I must leave early today, so bear in mind these are 3:30 Eastern time prices, not closes for stocks or the dollar index, but final settlement prices for metals.
Today was tossed by bewildering cross currents. Stocks suffered a bloody defeat, the dollar at least didn't fall onto its face, gold stands right at the line of confirming a breakout, but silver, platinum, and palladium all refused to confirm that strength. What gives?
'Twould be tough to overstate today's disaster in stocks. S&P and Dow both sliced clean through their 50 DMA (1,813 and 16,156) like a sharp knife through cold lard, and the Dow ended (as of 3:30 eastern) right at the channel line it broke above in November. Both indices show a two day waterfall, clearly panic selling. This will drop further and last longer.
US Dollar index went flat, losing only 5.5 basis points after yesterday's plunge. Being a fiat currency and having no value in itself but the Hot Potato value of passing it along to another victim, it could just as well break down thoroughly here as rally. It's already below its 50 DMA. Needs to stay above 79.50 to survive.
Y'all enjoy your weekend!
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
© 2014, 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.