Tuesday, April 15, 2014

The Gold Price Dropped $27.20 Closing at $1,300

15-Apr-14PriceChange% Change
Gold Price, $/oz1,300.00-27.20-2.05%
Silver Price, $/oz19.48-0.52-2.61%
Gold/Silver Ratio66.7420.3790.57%
Silver/Gold Ratio0.0150-0.0001-0.57%
Platinum Price1,444.10-22.70-1.55%
Palladium Price796.15-15.60-1.92%
S&P 5001,842.9812.570.69%
Dow in GOLD $s258.606.692.66%
Dow in GOLD oz12.510.322.66%
Dow in SILVER oz834.9226.223.24%
US Dollar Index79.890.060.08%

The GOLD PRICE dropped $27.20 (2.1%) to $1,300 while the SILVER PRICE erased 52.1 cents to close Comex at 1947.8c.

For the gold price, two outcomes are possible. First is a return to or near the April low ($1,277.40). Second is a drop to a lower low, $1,240 - $1,260. Yet a third possible outcome is that the June and December lows were not a double bottom and one further drop may come. I account that the least likely, and look for a low here by the end of the week, but I'm no more'n a nacheral born durnd fool from Tennessee, so what do I know?

Silver and GOLD PRICES have come unsynchronized. Silver's drop today wrecked the 1960c support, and sets the stage for a spike to next support about 1897c. This should come fast, next three or so days.

You'd think that an institution charged with promoting the gold industry would produce reports that at least cast the best light on gold's prospects. You'd think wrong, if you're thinking about the World Gold Council. They've been negative on gold for, oh, the last 14 years or so. Today they issued a report that contained a nugget about Chinese business using physical gold as collateral for bank credit ($40 bn worth) but they managed to tease a gloomy forecast even out of this inventive monetary use. That and bad economic news out of China appeared to be the catalyst for gold's drop today.

But when the drop is ready, the cause appears. That fall was likely already in the market, and the report, plus jitters over the first anniversary of the April Massacre in gold and silver last year, furnished an excuse. I had been thinking that the gold price had possibly completed a three leg (A-B-C) correction, but clearly another leg remains. That began today.

Stocks recovered a bit today. Dow Closed at 16,262.56, up 89.2 (0.6%) and even jumped over its 50 DMA. S&P500 lifted 12.37 (0.7%) to 1,842.98, but not above its 50 DMA. Nasdaq Comp nearly touched its 200 DMA at 3,942.51 when it hit a low of 3,946.03, then turned up. Did that surprise anybody, that buyers were lurking at the 200 DMA?

Stocks have suffered brutal technical damage. I suspect we will look back and see the early -2014 new all time highs as the peaks in stocks, although I still expect one last peak, maybe lower, maybe higher, in May.

Although the US Dollar index rose only 6 basis points (0.7%) to 79.89, clearly money has flown into US treasuries because they are higher and the yield on the 10 year treasury is trying to break down, indeed, has broken down. Copper fell off the cliff with the bad news out of China, and closed at $2.99. Nasty break. The other scabrous, disgusting fiat currencies did nothing today, and the Central banking criminals were quiet.

Y'all keep your heads. Lift your eyes to the horizon. In the next few days the market will hand you a superb buying opportunity in silver and gold. Get locked and loaded.

Please remember I will be away the rest of the week attending a grazing seminar. I won't be sending commentaries, but will return on Easter Tuesday.

Y'all have a blessed Easter celebration!

Aurum et argentum 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.