Wednesday, September 24, 2014

Silver and Gold Prices Lower with the Gold Price Closing at $1,218.60

24-Sep-14PriceChange% Change
Gold Price, $/oz1,218.60-2.40-0.20%
Silver Price, $/oz17.64-0.07-0.40%
Gold/Silver Ratio69.070.1380.20%
Silver/Gold Ratio0.0144-0.0000-0.20%

3 Day Gold Price Chart
30 Day Gold Price Chart
5 Year Gold Price Chart
3 Day Silver Price Chart
30 Day Silver Price Chart
5 Year Silver Price Chart
The GOLD PRICE stumbled and fell $2.40 (0.4%) to $1,218.60 on Comex. Silver lost 7 cents to $17.64.3.

Gold put in a high about $1,227 today about 4:30 a.m. Eastern time, then spent the rest of the day giving it back. Despite that reach upward yesterday to $1,237, gold's five day chart shows no excitement. Today was basically a flat day between $1,227 and $1,216. It closed barely below its ruling downtrend line (from 1 September). Holding its breath.

The SILVER PRICE remains overboughter than woolen drawers at an old ladies' convention. Today did little for silver except close it above the $17.50 line. There was a bit of movement in silver, with a 3:30 a.m. high at $17.87 and a low at $17.51 about 11:15. In the aftermarket silver has returned to $17.71, about seven cents above its Comex close.

Despite the excitement silver and GOLD PRICES generated yesterday, they fell back into the glumps today. No sign yet they are turning up.

Sometimes I was sort of downcast, thinking about all the world's central banks crowding into markets and manipulating them, or, if not manipulating, overwhelming them with money. As Chris Powell of GATA says, there aren't any markets any more.

Then I get a good view of the sky, or remember how huge the earth is looking down from an airplane, and I am reminded how small men are, how arrogant their plans, and how quickly overthrown. Patience doesn't panic.

That doesn't change the closes, but it does brighten my mood some.

I keep wondering what tyrannical government action will finally make y'all stiffen up your backs and say, "NO!" Better think about it, cause here's what you have to face next: the Garbage Police.

Mercy, I wish I had an imagination so overamped I could invent stuff like this, but only the Left Coast could spawn this idea. In Washington State (where all the drivers drive in the left lane) the City of Seattle will soon begin to fine you if you throw banana peels or old tomatoes in your garbage. No, no, no, you troglodytic environmental spoiler! You must sort your compostable garbage so Seattle can meet its self-imposed goal of recycling 60% of all waste. This passed the city council by a 9-0 vote, which makes one (like me) wonder why they haven't yet recycled the city council.

There are so many things wrong about this, I don't know where to begin unraveling it. I could begin by denouncing the socialism of city government owning the garbage collection service, but then I'd have to get into the rest of the evils municipal socialism, and that could take hours.

God deliver us from do-gooders! They will conform you to their own righteous image even if they have to cut off your hands and feet and kill you to do it.

By the way, don't y'all write me any self-righteous emails about recycling, either. I don't need to compost, I have a PIG. He eats it all, and eventually I recycle him into lard, ham, bacon, and pork chops. Not one shred of edible compost escapes my pig bucket, after every meal. But then, nobody MAKES me do it.

Now today's markets:

US dollar index advanced 36 basis points (0.42%) through the 2013 high at 80.96 to perch at 85.15. This makes a further dollar rally look inevitable, but the present overboughtness begs for a correction soon.

Head Criminal at the ECB, Mario Draghi ("Mr. Eye-bags") promised again to keep monetary policy loose for as long as it takes. To do what, I don't know. Euro obediently sagged to a new low at $1.2781, down 52%.

Yen can't muster enough strength to get up off the floor. Lost 0.16% and ended at 91.71 cents/Y100

After 3 days falling away from the 200 day moving average, the 10 year Treasury note yield gained 1.34% today to 2.569%. Acts as if it wants to climb.

Stocks meanwhile, buoyed (I reckon) by the myth that a strong currency goes with a strong stock market, rose sharply. Dow added 154.19 (0.9%) to 17,210.06. S&P500 rose 15.53 (0.8%) to 1,998.30. This fierce volatility, way up one day and way down the next, characterizes topping markets. S&P500 closed right at its 20 DMA (1,997.95).

Dow in gold zagged back up after zigging down several days. DiG rose 1.42% to 14.14 oz (G$292.30 gold dollars), lower than Friday's high. Dow in silver (Mercy!) made another new high today at 974.25 oz (S$1,259.64 silver dollars). Gravity ought to be pulling down hard on the DiS, as it is monstrously overbought plus has thrown over the upper resistance line.

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.