Friday, February 21, 2014

This Silver and Gold Price Rally Will Far Surpass Gains Seen from 2001 - 2011

Gold Price Close Today : 1,323.90
Gold Price Close 14-Feb-14 : 1,319.00
Change : 4.90 or 0.4%

Silver Price Close Today : 21.782
Silver Price Close 14-Feb-14 : 21.411
Change : 0.371 or 1.7%

Gold Silver Ratio Today : 60.780
Gold Silver Ratio 14-Feb-14 : 61.604
Change : -0.824 or -1.3%

Silver Gold Ratio : 0.01645
Silver Gold Ratio 14-Feb-14 : 0.01623
Change : 0.00022 or 1.4%

Dow in Gold Dollars : $ 251.44
Dow in Gold Dollars 14-Feb-14 : $ 253.18
Change : -1.73 or -0.7%

Dow in Gold Ounces : 12.164
Dow in Gold Ounces 14-Feb-14 : 12.247
Change : -0.08 or -0.7%

Dow in Silver Ounces : 739.29
Dow in Silver Ounces 14-Feb-14 : 754.49
Change : -15.20 or -2.0%

Dow Industrial : 16,103.30
Dow Industrial 14-Feb-14 : 16,154.39
Change : -51.09 or -0.3%

S&P 500 : 1,836.25
S&P 500 14-Feb-14 : 1,838.63
Change : -2.38 or -0.1%

US Dollar Index : 80.300
US Dollar Index 14-Feb-14 : 80.180
Change : 0.12 or 0.1%

Platinum Price Close Today : 1,426.30
Platinum Price Close 14-Feb-14 : 1,428.50
Change : -2.20 or -0.2%

Palladium Price Close Today : 740.00
Palladium Price Close 14-Feb-14 : 737.40
Change : 2.60 or 0.4%

Silver and GOLD PRICES scored another successful week, suffering a small correction bravely met. Gold rose 0.4% for the week, silver 1.7%. Today gold won another $6.80 (0.5%) to $1,323.90. Silver inched up 9.8 cents (0.5%) to 2178.2c.

After Tuesday's 2198c intraday high silver went into resting mode, but still never dropped lower than 2138c this week. This formation looks like a "pennant". Rule of thumb says, "Flags (and pennants) always fly at half staff," which gives this move a first target of about 2350c. Next week should witness silver jump up again.

Y'all shouldn't underestimate the worth of silver and gold prices at last climbing above their 200 day moving averages. That points momentum upward after we have struggled more than two years in a correction, with silver beneath that 200 DMA most of the time.

Last week the GOLD PRICE broke through $1,300 and $1,320 resistance. It's breathing and puffing here, but should reach $1,360 before it takes a real rest. Gold might drop as low as $1,280 without breaking this uptrend.

On the weekly chart the gold price has risen plumb to the evil downtrend line from the August 2011 high, stands above the 20 week moving average and is kissing its 50 WMA. Confirmation comes when it passes the August high ($1,434), getting ready to challenge $1,550 where the April Agony occurred.

The SILVER PRICE weekly chart shineth even more brightly. Silver has risen above its since-April 2011 downtrend line and is also kissing its 50 WMA.

Silver and gold ought to have at least a week left to rally. But never mind anticipations, both have definitively turned up out of the 2011-2013 correction. And this rally will far surpass any gains silver or gold saw from 2001 - 2011. Read that again, because I mean it. The best and biggest gains are yet to come.

If y'all miss that train, don't send me any post cards complaining I didn't warn y'all.

One last time I'll remind y'all, if you ever want to swap gold for silver at spot ratios above 60:1, you'd better jump. We are swapping gold for silver now, targeting a swap back at 31;1 or better.

Solid week for metals, making good last week's gains. Stocks struggled and still closed barely lower. US dollar index feebly rose. Dow measured in Silver and gold fell further.

US DOLLAR INDEX did no more this week than validate the bottom boundary (79.95) of the range in force since September, 79.75 - 81.50. Today peeled off two basis points to fall to 80.30. Momentum is earthward.

The euro, "The Manic Depressive Fiat Currency," rose again today. It's tightening up in a triangle that might shoot high but might also step through a rotten well cover. Today gained 0.14% to $1.3738. Japanese yen, lower by 0.22% today to 97.25, now hath fallen below its 20 day moving average. Should move lower, but barely.

STOCKS closed lower this week. Out of six weeks this year, stocks have closed lower three. Today most indices fell, not much, just enough to break morale. Dow mislaid 29.93 (0.2%) to 16,103.30. S&P500 lost 3.53 (0.2%) to end at 1,836.25

Stocks are painfully fulfilling a broadening top formation. From here we may yet see slightly higher highs, or we may have seen them already. Either way, by end-May we ought to know. Future course is down. Investors ought to be selling stocks and rolling proceeds into silver and gold.

Dow in gold lost another 0.43% to 12.14 oz. (G$250.96 gold dollars). Blamed thing has been falling so long I'm wondering if it's not time for a little rally. Dow in Silver is worse. It stands below the 200 DMA (741.24 oz) at 737.50 oz today, lower by 0.28%.

What I want to see here is more downside, confirming that metals have reversed their downtrend against stocks. Long term downtrend line for Dow in Silver today hits about 580 oz, for gold about 10 oz, so we have a ways to fall for final confirmation. Be patient.

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.