Tuesday, February 18, 2014

Silver and Gold Prices Have Been Rising for Twelve Days Straight

Gold Price Close Today : 1324.70
Change : 5.70 or 0.43%

Silver Price Close Today : 21.888
Change : 0.477 or 2.23%

Gold Silver Ratio Today : 60.522
Change : -1.082 or -1.76%

Silver Gold Ratio Today : 0.01652
Change : 0.000290 or 1.79%

Platinum Price Close Today : 1422.90
Change : -5.60 or -0.39%

Palladium Price Close Today : 736.95
Change : -0.45 or -0.06%

S&P 500 : 1,840.76
Change : 2.13 or 0.12%

Dow In GOLD$ : $251.71
Change : $ (1.46) or -0.58%

Dow in GOLD oz : 12.177
Change : -0.071 or -0.58%

Dow in SILVER oz : 736.95
Change : -17.54 or -2.32%

Dow Industrial : 16,130.40
Change : -23.99 or -0.15%

US Dollar Index : 80.060
Change : -0.120 or -0.15%

Whooo! I hope y'all had a good time yesterday on Generic Presidents Day. Markets were closed so the prices you see below are compared to Friday's closes.

Both silver and GOLD PRICES have reversed against stocks, and should continue to outperform them

Gold Price Monthly - stockcharts.com
The GOLD PRICE was actually $5 higher yesterday, but today still closed Comex $5.70 (0.43%) higher than Friday at $1,324.70. This also is a two-day close over the 200 DMA ($1,309). Here's gold's monthly:

Silver Monthly - stockcharts.com
The SILVER PRICE confirmed Friday's breakout and close above the 200 DMA (2112c)today by closing 47.7 cents (2.23%) higher at 2188.8c. If 2100c and 2200c are passed, can 2300c be far behind? Here's silver's monthly chart:

Both the silver and gold price have been rising twelve days running leaving both overbought and begging for a correction. However, "overbought" can get a LOT MORE overbought before the rally's over.

I fall back on rational rules. We buy breakouts, and both the silver and gold price have proven breakouts above their since-April downtrends. Gold has completed and pulled away from an upside down head and shoulders.

Buy any correction. And if you were waiting to buy a breakout, buy now.

Today I spent a long time gazing on charts of what the Federal Reserve hath done to the money supply since 2008, and I interviewed a friend who worked 20 years for several Federal Reserve banks as a lawyer and economist. "Renewed optimism" was not the outcome of my meditation. With its unlimited money creation the Fed has climbed up for a ride on a tiger. They have no safe way to dismount, and like an alcoholic, no more imagination than to keep drinking the same rotgut whiskey every day while expecting a different result. 'Twill end in unspeakable pain.

Meanwhile the yankee government continues seizing control of the rest of the economy, what ears and tail the Fed doesn't already control. O'Bama's generous philanthropy raising the federal minimum wage (CBO says) will raise 900,000 people out of poverty but -- whoops-- put 500,000 people out of work. What's a communist to do? You have to hurt the poor to help the poor, I reckon. They're all the same, communists and socialists: they love all mankind but no man. That's why they can kill 60 million people to save mankind.

But look on the bright side: once their stupidity, regulations, and greed (don't forget Wall Street, feeding off the corpse of the nation) has brought the economy to collapse, we'll get a chance to rebuild a just, stable, and prosperous one -- without them in charge!

On to markets!

Ya'll remember how the Dow in January signaled the big drop coming by falling when the other indices were rising? Well, it's repeating that act. Dow today lost 23.99 (0.15%) to 16,130.40 while other indices rose slightly. S&P500 added 2.13 (0.12%) to 1,840.76.

Since 1997 stocks have been building a deadly Megaphone or broadening top pattern. The last highs took the Dow to the very top boundary. 'Tis possible it could make a marginally higher high, but look at the previous two touches (2000 and 2007) and see what you think. Looks about to reverse toward the earth's core.

Meanwhile the Dow in Gold and Dow in Silver continue to roll downhill. Dow in gold today lost 0.56% to close at 12.18 oz. It has now traversed about half the distance between its 20 DMA above and 200 DMA below.

But the excitement today comes from the Dow in Silver. Whoa! Sank 15.28 oz (2.03%) to end at 736.62 oz, BELOW the 200 DMA (739.51).

Those Nice Government Men better get busy earning those fat paychecks and manipulate the US Dollar Index back up into the sky. It fell again today 12 basis points (0.16%) to 80.06. One more day lower puts it in danger of crashing through 79.50 for a freefall. Ultimately, the dollar index will lose another 50% of its value.

It makes no sense at all -- but in the age of government run markets, nothing makes sense anyway -- to see the euro rise today 0.49% to $1.3759. Yet who am I to argue? Who am I to protest that their sovereign debt is bigger than the US's, their banks sicker, their social cohesion weaker? It's nuts.

Yen lost 0.48% to 97.70 cents/Y100. May be the Nipponese NGM are trying to send it lower.

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.