Monday, July 21, 2014

The Gold Price Rose $4.50 to Close at $1,313.70

21-Jul-14PriceChange% Change
Gold Price, $/oz1,313.704.500.34%
Silver Price, $/oz20.970.130.62%
Gold/Silver Ratio62.659-0.172-0.27%
Silver/Gold Ratio0.01600.00000.27%
Platinum Price1,492.703.500.24%
Palladium Price876.15-4.35-0.49%
S&P 5001,973.63-4.59-0.23%
Dow in GOLD $s268.32-1.69-0.62%
Dow in GOLD oz12.98-0.08-0.62%
Dow in SILVER oz813.30-7.36-0.90%
US Dollar Index80.610.000.00%

3 Day Gold Price Chart
30 Day Gold Price Chart
3 Day Silver Price Chart
30 Day Silver Price Chart
Today the GOLD PRICE rose $4.50 (0.34%) on Comex, ending at $1,313.70 Silver bumped up 12.8 cents (0.62%) to 2096.6c.

I know y'all probably don't pay no mind to the 300 day moving average, but starved for excitement as my life is, I watch it. I have been watching it for a coon's age, because closing above the 300 DMA and staying above the 300 DMA witnesses that the correction is over. So I want y'all to understand that when I say, "Silver remained above its 300 DMA today," that is a statement pregnant with meaning.

But the object is to close above the 300, then pull away above it. Hasn't done that yet.

Today the SILVER PRICE couldn't close above its 20 DMA (2108c), but also did not close below the rising trend line from the June bottom, today about 2080c. I expect silver will manage one more scary spike through that line, maybe as far as the 200 DMA at 2036c. There I would back up the truck and load 'er up.

GOLD PRICE is trapped in an even-sided triangle, nor could it climb over its 20 DMA. Uptrend line here comes in about $1,300. Spike to $1,380 is still possible.

Once again I caution that safe haven gains such as those occasioned by events in the Ukraine don't usually stick. But clearly for the present it is preventing further falls.

Patience should pay off here.

There's a proverb that nothing stinks worse than perfume gone bad, and there's nothing more shameful, ridiculous, or illogical than science gone political. You simply can't serve truth if you're aiming for a political result.

And of all the politically-driven scientific hogwash, "climate change" or "global warming" stands at the list's head. Not even as believable as the Tooth Fairy -- less evidence for its existence.

But one particular burr under the saddle of these political scientists has been cows. Because they are ruminants -- basically a grass fermentation barrel on legs -- cows produce gas out of both ends. Not as much as termites, I am told, which leaves you wondering who would devote a lifetime to studying termites' gas-passing customs.

But let all that go, and don't miss this: the premise of man-created global warming and the evils of carbon dioxide is simply hogwash. All the same, that doesn't slow down the Cow Persecutors.

Latest attack comes from an article in the Proceedings of the National Academy of Sciences (government science at its best) in a study that says beef causes 10 times the environmental impact of pork, poultry, dairy, and eggs. I will pass over in science the erring premise that compares raising beef the American industrial way (in feedlots) on grain rather than grass feeding on pasture. More, the study ignores that much land devoted to raising cattle is so marginal that it cannot be used for anything else. Finally, these "scientists," who may never have actually seen or touched a cow, do not notice that grazing grass actually IMPROVES the soil and, if properly managed, can restore as much as an inch of topsoil every ten years.

So for a truly healthy environment, go eat a steak tonight. Naww, make it TWO steaks, and grass-fed at that.

That Malaysian airliner shoot-down came back to haunt stocks today. Dow fell back 48.45 (0.28%) to 17,051.73. S&P500 lost 4.59 (0.23%) to 1,973.63. Inability to hold on to gains looks weak to me, but I am notoriously NOT stocks' best friend. Still expecting a large fall soon.

Dow in metals jiggled today, but remain tight-lipped. Both the Dow in Gold and Dow in Silver remain about their 20 day moving averages, i.e., their momentum is upward. Dow in silver lost 0.67% to 811.52 oz (S$1,049.24 silver dollars), hovering above the 20 DMA. Dow in gold fell 0.47% to 12.98 oz (G$268.32 gold dollars). Most indicators appear to point higher, not the way I prefer it to go.

Air traffic over the Ukraine must be running investors into US bonds for safety (just think about that a minute, to get a flavor of what a lunatic world we live in). Of course, that drives the yield down. 10 year treasury note yield ended today a little lower at 2.474%. It is walking a line along a cliff where there's not enough room to swing a cat. Once misstep and it falls much further.

In trading this morning before New York opened the dollar index stumbled and fell to 80.42, but quickly rose back above 80.50 and flattened out the rest of the day around 80.60. Ended unchanged at 80.61. All that is right low volatility, but trend is up. Euro went nowhere, up 0.01% to $1.3524. Hanging over an abyss by a cotton thread. Yen barely jiggled today -- Hey, shake that thing by the shoulder and see if it's still alive! Down 0.03% to 98.64.

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.