Tuesday, August 26, 2014

The Gold Price Reached $1,291.90 Today, Falling Back to Close Comex at $1,283.80

26-Aug-14PriceChange% Change
Gold Price, $/oz1,283.806.500.51%
Silver Price, $/oz19.390.030.14%
Gold/Silver Ratio66.2230.2400.36%
Silver/Gold Ratio0.0151-0.0001-0.36%
Platinum Price1,421.601.200.08%
Palladium Price888.70-1.05-0.12%
S&P 5002,
Dow in GOLD $s275.45-0.92-0.33%
Dow in GOLD oz13.33-0.04-0.33%
Dow in SILVER oz882.430.260.03%
US Dollar Index82.690.110.13%

3 Day Gold Price Chart
30 Day Gold Price Chart
3 Day Silver Price Chart
30 Day Silver Price Chart
I seldom use a cell phone, but I am prone to peak at the gold price early in the morning. I was pleased today, as it was already higher. The GOLD PRICE reached $1,291.90 today, but fell back during the day to close Comex at $1,283.80, up $6.50. In fact gold tried twice to break through $1,290, once about 3:00 a.m. Eastern time, and again about 9:30.

This reminds me of George Washington. He was a terrible tactician and general, but he had one quality that made him victorious: he wouldn't quit. No matter how many times he was beaten, no matter how much congress quarreled and quibbled and backbit, no matter how hopeless the Americans' outlook appeared, he never quit.

In a significantly lesser matter, gold reminds me today of Washington. It's coming back. It's hammering at the ceiling, then hammering again. It's climbed back above its 200 day moving average after bouncing off that uptrend line from the December low.

Tomorrow above the GOLD PRICE lurks the downtrend line form the October 2012 high about $1,297.50. That is gold's first step to breaking free.

The SILVER PRICE performance today was unlike gold's. It climbed to a high about 9:30 a.m. Eastern time, then broke and slid back to 1940c. It closed Comex up 2.8 cents (0.14%) at 1938.6. Yesterday it fell 2.8 cents. What is this, a game?

Just above silver is its 20 DMA at 1982c. It needs to cross that first, but the first formidable hurdle is 2000c, and the 200 DMA now about the same spot, namely, 2010c. This is better than silver has looked for more than a month.

The headlines screamed that the S&P500 closed above 2000, and that's true -- by 0.02, because it rose 0.11% or 2.10 to close at 2,000.2, a new high close and a new intraday high, also (2005.04).

Dow (barely) made a new intraday high at 17,153.80 over 17 July's 17,151.56. Dow rose 29.83 (0.17%) to close at 17,106.70 , not a new high close.

That brings the S&P500 close to the 2,020 top of its upper range line. Both indices have posted double tops, but that says nothing unless followed by a significant decline. Indicators are stretched out to the upside. It's a mania, so nearly impossible to predict.

Dow in gold dropped today, 0.46% to 13.31 oz (G$275.14 gold dollar). Dow in silver rose 0.89% to 884.12 oz (S$1,143.10 silver dollars). Somewhere soon we should see double tops and turns in both these indicators. What's the answer for anxiousness? Simply to watch patiently.

US Dollar Index, sucking tick on the world's economic jugular vein, rose another 11 basis points (0.13%) today to 82.69, only six basis points off my 82.75 target. Can it rise higher? Certainly, but it is now in the fifth leg up of this advance, which argues for a soon end to upwardness. RSI is more overbought than Facebook. 'Twill break soon, or my name isn't Barack Obama.

Euro continues to fall, another 0.16% today to $1.3171. It has left two gaps behind and reached the target implied by the little narrow triangle it broke down from, and it is more oversold than government promises to care for you in old age. Ought to turn up soon, unless of course the Europeans do something else stupid like sanctions on Russia or their own brand of Quantitative Easing -- which is an ever present possibility.

Yen closed flat today at 96.12 but traded higher during the day. In other words, it bounced off the bottom boundary of its 9 month trading range. Tells us nothing yet, since it would pause here anyway even if it planed to punch through and drop to the bottom of the Pacific.

I don't talk about it much but I watch the 10 year Treasury note yield every day. It plunged through important support line early in August, but has since made a double bottom -- on spikes, no less -- and may turn around if it can close through its 20 DMA, now 2.436%. Closed today at 2.391%.


Did y'all ever wish you could travel back in time? Here's your ticket: US $20 Double Eagles, the great gold coin of the classical U.S. gold standard.

These big golden cartwheels contain nearly a full ounce of gold (0.9675 troy ounce). The obverse shows a head of Liberty, the reverse the heraldic American Eagle. These coins were minted in the same weight and fineness (21.5 karat or 90% pure) from 1850 through 1907.

The long sleepy doldrums in the gold market have eroded the premium on all grades of US $20 gold pieces, and that's just what attracted my attention. You can buy these Very Fine (VF) grade $20 Liberty Double Eagles for $1,335.25, only 7.5% over their gold value. That's only about $10 an ounce more than you would pay for currently minted US American Eagles.

Which would I rather have, an American Eagle minted last year or these $20 Double Eagles minted more than 100 years ago? Which would be easier to sell? The question answers itself. Normally I wouldn't recommend any numismatic coins because they carry too high a premium, but at these low premiums they're a reasonable buy either as an investment in gold bullion or a survival coin.

Note that "Very Fine" grade is a circulated, not a Mint State grade, so these coins will show some wear. I guarantee however that they have full gold content. Spot price basis is $1,284.00. Dates are our choice. OFFER NO. 1

Two (2) each VERY FINE $20 Liberty-type gold Double Eagles at $1,335.25 each for a total of $2,670.50 plus $35 shipping for a grand total of $2,705.50. That's a premium of 7.5% over melt value. One lot totals 1.9350 troy oz. fine gold

NOTE: I will charge shipping only once per order no matter how many lots you buy. OFFER NO. 2

Four (4) each VERY FINE $20 Liberty-type gold Double Eagles at $1,335.25 each for a total of $5,341.00 plus $35 shipping for a grand total of $5,376.00. That's a premium of 7.5% over melt value. One lot totals 3.8700 troy oz. fine gold OFFER NO. 3

Ten (10) each VERY FINE $20 Liberty-type gold Double Eagles at $1335.250 each for a total of $13,352.50 plus $35 shipping for a grand total of $13,387.50. That's a premium of 7.5% over melt value. One lot totals 9.6750 troy oz. fine gold

NOTE: I will charge shipping only once per order no matter how many lots you buy.

Special Conditions:

First come, first served, and no re-orders at these prices. I will write orders based on the time I receive your email Send email to [email protected]

Sorry, we will not take orders for less than the minimum shown above.

All sales on a strict "no-nag" basis. We will ship as soon as your check clears, but we allow Two weeks (14 days) for your check to clear. Calls looking for your order two days after we receive your check will be politely and patiently rebuffed.

It increases your chances of getting your order filled if you offer me a second choice, e.g., "I want to order Three lots of Offer #3 but if not available will take One lot of Offer #2." ORDERING INSTRUCTIONS:

1. You may order by e-mail only to [email protected] No phone orders, please. Please do NOT order by replying to THIS email, because it will not reach me timely.

Please include your name, shipping address, and phone number in your email. Surprising as it is, we cannot ship to you without your address. Sorry, we cannot ship outside the United States or to Tennessee.

Repeat, you must include your complete name, address, and phone number. We will read your mind, but will have to charge you three times the price. Cheaper if you just supply your information so I don't have to read your mind.

2. When you buy from us, we cannot later change or cancel the trade. We are giving you our word that we will sell at that price, and you are giving us your word that you will buy at that price, regardless what later happens in the market, up or down.

If you break your word to us, we will never again do business with you.

3. Orders are on a first-come, first-served basis until supply is exhausted.

4. "First come, first-served" means that we will enter the orders in the order that we receive them by e-mail.

5. If your order is filled, we will e-mail you a confirmation. If you do not receive a confirmation, your order was not filled.

6. You will need to send payment by personal check or bank wire (either one is fine) within 48 hours. It just needs to be in the mail, not in our hands, in 48 hours.

7. "No Nag Basis" means that we allow fourteen (14) days for personal checks to clear before we ship.

8. Mention goldprice.org in the email.

Want your order faster? Send a bank wire, but that's not required. Once we ship, the post office takes four to fourteen days to get the registered mail package to you. All in all, you'll see your order in about one month if you send a check.

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.