Thursday, February 27, 2014

The Gold Price Closed $3.80 Higher at $1,331.80

Gold Price Close Today : 1,331.60
Gold Price Close 21-Feb-14 : 1,323.90
Change : 7.70 or 0.6%

Silver Price Close Today : 21.314
Silver Price Close 21-Feb-14 : 21.782
Change : -46.80 or -2.1%

Gold Silver Ratio Today : 62.475
Gold Silver Ratio 21-Feb-14 : 60.780
Change : 1.696 or 2.8%

Silver Gold Ratio : 0.01601
Silver Gold Ratio 21-Feb-14 : 0.01645
Change : -0.00045 or -2.7%

Dow in Gold Dollars : $ 252.62
Dow in Gold Dollars 21-Feb-14 : $ 251.44
Change : 1.18 or 0.5%

Dow in Gold Ounces : 12.220
Dow in Gold Ounces 21-Feb-14 : 12.164
Change : 0.06 or 0.5%

Dow in Silver Ounces : 763.47
Dow in Silver Ounces 21-Feb-14 : 739.29
Change : 24.18 or 3.3%

Dow Industrial : 16,272.65
Dow Industrial 21-Feb-14 : 16,103.30
Change : 169.35 or 1.1%

S&P 500 : 1,854.29
S&P 500 21-Feb-14 : 1,836.25
Change : 18.04 or 1.0%

US Dollar Index : 80.320
US Dollar Index 21-Feb-14 : 80.300
Change : 0.02 or 0.0%

Platinum Price Close Today : 1,452.15
Platinum Price Close 21-Feb-14 : 1,426.30
Change : 25.85 or 1.8%

Palladium Price Close Today : 742.25
Palladium Price Close 21-Feb-14 : 740.00
Change : 2.25 or 0.3%

Silver and GOLD PRICES both rose today, silver by 6 cents (0.28%) to 2131.4c and gold by $3.60 (0.27%) to $1,331.60.

All the same, other indicators still imply SILVER and GOLD PRICES must correct a while before rising further. A 50% correction of the long upmove from the December low would take silver back to 2050c, where silver broke out on 14 February. A kiss back to the breakaway point is fairly common. For the gold price the breakout was about $1,280, the break out from an upside down head and shoulders formation. But $1,300 was important resistance, so it might stop there.

Of course, I might have it all wrong and this might prove no more than a short breath-catcher before the gold price tries again to break through $1,360 resistance. When I'm confused, I just sit still till it passes. Gold closing above $1,350 and silver above 2220c would contradict my correction expectation.

Any correction gives us one last splendid opportunity to swap gold for silver above 60:1, holding the silver to swap back below 32:1. Act now.

I'm going to the Space Center in Huntsville with some of my grandchildren tomorrow, so I'm sending you the Friday report on Thursday.

This week probably put the cap on silver and gold prices for a little while. Stocks are laboring to rise, but not convincingly. US dollar index is stuck, spinning wheels.

Mama Yellen spake to the Senate Banking Committee, and her remarks are the reason cited by the media for stocks rise today. As usual, I couldn't tease anything so optimistic out of her remarks, but observed she has adopted the Greenspan Technique of saying nothing in a lot of words. But if stocks were willing to rise on a speech like that, they were rising anyway.

S&P500 made a new high close at 1,854.29, up 9.13 (0.49%) today and 5.99 higher than its last all-time high in January (1,848.30). There's an old rule that says that breakouts don't count until they exceed by 2% (some say 3%). So the S&P500 really needs a new high at (1,848.30 x 1.02%) 1,885.27 to create real excitement.

Meanwhile, back on the chart, the S&P500 has merely sketched out a megaphone or broadening top. This can be a very long, frustrating formation, making higher highs and lower lows, reversing again and again until finally it breaks down. And the S&P500 might move higher still.

But other markets ought to make stock buyers uneasy. Why is the Dow Industrials lagging so badly? Why is the Dow Transportation average lagging, too? Dow Industrial Average today rose 0.46% or 74.24 to 16,272.65. That remains a right smart below the 31 December 2013 16,588.25 intraday high.

Think of silver and gold. They might play leapfrog from time to time, but they can't continually contradict each other. That signals a reversal ahead. So it is with the various stock indices, they ought to confirm each other, and when they don't, they're whispering a warning.

US dollar index today closed at 80.32, losing 12 basis points (0.15%) or half of what it gained yesterday. The Dollar index stands in a position at its trading range's bottom where it might turn and climb, but so far it can't even pierce its 20 DMA (80.63). Maybe Mama Janet can talk it up.

Euro retraced today what it lost yesterday, up 0.17% to $1.3710. It has rolled over and acts as if it is breaking down. Yen gained 0.24% to 97.93, popping above its 20 DMA as if it had a mind to rise.

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.