Tuesday, June 03, 2014

Silver and Gold Prices Rose with the Gold Price Closing at $1,244.30

3-Jun-14PriceChange% Change
Gold Price, $/oz1,244.300.600.05%
Silver Price, $/oz18.730.020.12%
Gold/Silver Ratio66.426-0.050-0.07%
Silver/Gold Ratio0.01510.00000.07%
Platinum Price1,435.50-3.20-0.22%
Palladium Price83.624.155.22%
S&P 5001,924.24-0.73-0.04%
Dow in GOLD $s277.81-0.49-0.18%
Dow in GOLD oz13.44-0.02-0.18%
Dow in SILVER oz892.72-2.24-0.25%
US Dollar Index80.60-0.08-0.10%

Be still, my beating heart! The GOLD PRICE rose sixty cents today (not fifty-nine, but sixty) while silver rose 2.3 cents, an amount no self-respecting person would bend over to pick up off the sidewalk if he saw it lying there. Gold ended at $1,244.30 and silver at 1873.2 cents.

By the way, Commitment of Traders reports show that gold dropped last week not due to longs selling, but huge new short positions. Nothing new there.

I expect that the GOLD PRICE will turn around either from here or between here and $1,230. The SILVER PRICE could re-visit its June 2013 lows. The last week has done a lot of damage to silver and gold prices, and delayed a rally further.

Makes no difference how long this drags out, it won't be much longer now. Sometimes, it seems, things take longer than they do.

Whenever things seem to work out illogically, I go back and check my premise, which is, INFLATION DRIVES GOLD and SILVER BULL MARKETS. Fed creates inflation for government spending and to keep the borrow-money-into- existence money system going. So if y'all are worried about silver and gold prices, get on the internet and look up the answers to these questions:

1. Has the US Federal Reserve been abolished? Are there any plans to abolish it?

2. Has the US government balanced its budget? Is there any plan to balance it?

3. Where does one-half of US GDP arise? Hint: Government spending.

4. Does any statesman appear anywhere with plan and resolve to abolish the Fed or curtail government spending, let alone restore sound money?

5. Can pigs fly?

Once you've completed that research, you'll understand why I remain so bullish on silver and gold prices.

Stock rally gets thinner and thinner, and so does the precious metals' plunge. But I reckon they can get thinner still.

While I'm thinking about it, the euro, scrofulous spawn of centralizing central banks and bureaucrats, has been dropping since 8 May, nearly a month with ne'er a rally. More, everybody in the world expects the ECB criminals to announce more inflation one way or another. In other words, once the ECB news hits Thursday, the euro might undergo a "sell the rumor/buy the news" rally. The euro's trend against the dollar has turned down, but a rally would burn the shorts and send them running, which would boost the euro. It closed today up 0.21% to $1.3627, but that's still below its 200 day moving average.

Can y'all even IMAGINE how much money, mind power, and productive capacity is wasted merely on currency exchange rates? If the world had only two monies, gold and silver, as it did for 6,000 years until 125 years ago, all of that ink, thought, and talk could be applied to some useful purpose, like indicting and trying central bankers.

US Dollar index backed up 8 big basis points (0.1%) to 80.60 after yesterday's 80.73 high. Trading up one day and down two. It remains, however, above its moving averages (200 is at 80.47) and above the downtrend line, so lazy as it is, remains in an uptrend and should rise further. Japanese yen dropped 0.16% to 97.54. Broke down yesterday below its uptrend line, but remains in the same range that has imprisoned it since February.

All stock indices fell today, but not decisively. Dow lost 21.29 or 0.13%, S&P500 eased off 0.73 to 1,924.24. Miss not that the bluer chip indices are rising faster than the others as risk appetite decreases and investors roll over to what they consider "safer" stocks. That does not foretell sharply higher prices.

Dow measured in metals backed off today but 'tis all sound and fury, signifying nothing -- yet. Just be patient.

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.