Thursday, January 09, 2014

The Gold Price Remains Above it's 20 Day Moving Average Moving Up to $1,229.30

Gold Price Close Today : 1229.30
Change : 4.00 or 0.33%

Silver Price Close Today : 19.663
Change : 0.145 or 0.74%

Gold Silver Ratio Today : 62.518
Change : -0.260 or -0.41%

Silver Gold Ratio Today : 0.01600
Change : 0.000066 or 0.42%

Platinum Price Close Today : 1417.70
Change : 5.50 or 0.39%

Palladium Price Close Today : 735.60
Change : -1.80 or -0.24%

S&P 500 : 1,838.13
Change : 0.64 or 0.03%

Dow In GOLD$ : $276.53
Change : $ -2.05 or -0.74%

Dow in GOLD oz : 13.377
Change : -0.099 or -0.74%

Dow in SILVER oz : 836.33
Change : -9.71 or -1.15%

Dow Industrial : 16,444.76
Change : -68.20 or -0.41%

US Dollar Index : 81.070
Change : -0.110 or -0.14%

The GOLD PRICE augmented $4.00 to $1,229.30 and Silver gained 14.5 cents to 1966.3, but this provides no life altering information.

Both silver and GOLD PRICES have measly uptrends working, bottom line of which the SILVER PRICE bounced off today, but without reaching above its 20 DMA. Gold remains above its 20 DMA, but stuck between $1,222 and $1,232. So in the end we have two little uptrends working against a major downtrend, and gold and silver ain't talking.

When they don't talk, there's nothing I can say. But of course, being a natural born fool from Tennessee, I just have to open my mouth and prove it. Been thinking today about the Fed's "good luck" with its massive money creation. On a smaller scale US Fed governor Benjamin Strong did the same in the 1920s, fighting the post World War I repression. Oh, it worked for a while, and GM added steam by creating widespread consumer credit with GMAC. Although the agricultural depression continued through the 1920s, industry kept bubbling on more and more new money. Then one day in October 1929, it stopped working. Report card? Pushing off the recession with inflation managed to push off the recession a little BUT also turn it into the bloodiest depression in US history that only ended thanks to the artificial demand of World War II.

Yeah, buddy! That inflation works like a cham-peen! But what do I know? I ain't even no ekernomicks perfesser.

All the markets I watch are lethargic and as indecisive as a pretty girl at a ball being asked to dance by two ugly boys. Better to dance than not to dance, but with which ugly boy?

Some stock indices rose, some fell, all arguing about which way they would go. Dow fell 17.98 (0.11%) while the S&P500 rose 0.64 or 0.3% (I reckon you can call that "rising") to 1,838.13. The chart, as I said yesterday, isn't hard to parse: it's a downtrend. But is it the beginning of a big move, or merely a small breath-catcher? Maybe a bigger move, since the MACD for both indices flashed a sell signal today. Closes below the 20 DMA at 16,257 and 1,819 are needed to confirm that downtrend.

It catches my eye that the Dow in Silver and Dow in Gold dipped down slightly today. Dig dropped 0.25% to 13.40 oz (G$277.00 gold dollars) while the DiS ended at 841.81 oz, down 0.24%. Not much meaning there, but right direction.

The US dollar Index, the female black widow spider of currencies, disappointed its lovers today by dropping 11 basis points (0.14%). It remains in an uptrend, but seems in no hurry, rising one day then giving most of it back the next. Euro rose 0.21% back to the support line it fell through yesterday, but still beneath its moving averages. Amazing it could do that with that anchor tied to its feet and hanging over that cliff. Yen rose 0.1% to 95.44 cents/Y100. It's playing with the downtrend line, trying to make a decisive break when its guards aren't watching.

On 9 January 1990 my wife and I were arrested by the yankee government in a SWAT team raid. What was our alleged crime? Not filing income tax returns and conspiring to delay and defeat the IRS. According to most folks I was just a monetary nut and crank who believed gold and silver are money and paper is not, but according to one US attorneyess, I was the Most Dangerous Man in the Mid-South. And maybe she was right, given that telling the truth is always dangerous, both to those in and out of power. But those out of power have no SWAT teams with which to arrest their gainsayers.

Exactly one and one half years later, on 9 July 1991 of the 18 defendants who refused to plead guilty, all 18 of us were declared Not Guilty by a jury. To God alone be the glory!

You can read about this adventure at

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.