Tuesday, September 30, 2014

The Gold Price Dropped $7.00 to Close $1,210.50

30-Sep-14PriceChange% Change
Gold Price, $/oz1,210.50-7.00-0.57%
Silver Price, $/oz17.01-0.51-2.91%
Gold/Silver Ratio71.1811.6732.41%
Silver/Gold Ratio0.0140-0.0003-2.35%
Platinum Price1,298.505.800.45%
Palladium Price774.955.700.74%
S&P 5001,972.29-5.51-0.28%
Dow in GOLD $s291.041.190.41%
Dow in GOLD oz14.080.060.41%
Dow in SILVER oz1,002.1727.562.83%
US Dollar Index86.040.300.35%

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 slid $7.00 (0.6%) $1,210.50 today while silver dove 2.9% (51 cents) to 1700.6c.

The SILVER PRICE made a new low for the move at $16.85, but climbed back to $17.00. Gold, too, touched a new low at $1,204.30, but gold's indicators (I'm telling y'all) are turning up. Nothing changed today, except that silver became even more oversold than it was yesterday.

The Dow measured in the Silver and Gold Price, the struggling stock market, the acutely overbought dollar and acutely oversold silver and gold prices all keep screaming at me that somewhere here there is a 180 degree reversal. But when? WOULD YOU BUY GOLD AT $1,180.28?

Markets teach humility: never say never. US dollar index rose again today, up 0.35% (thirty basis points) to 86.04, a four year high.

Now what in the world could push a no-good, low white-trash, absolutely unbacked, scrofulous, scabby fiat currency like the US dollar to new highs? As Yogurt said in the movie Spaceballs, "Moichendizing!" Y'all live in a world of marketing, spin, appearance, and illusion, along with a public that beats world history for gullibility and docility. Today all the gullible are running after the airy US dollar, tomorrow the euro, next day the yen, whatever the fashion is, because underneath the reality never changes.

But what do I know? I'm only a nat'ral born durn'd fool from Tennessee, not one of them P.T. Barnum central bankers.

The dollar's rise caused its comrades in leprosy, the euro and yen, to stumble and tumble. Euro gapped down and ended at $1.2631, down 0.45%. Yen lost 0.15% to 91.22 cents/Y100.

I can only look at those three charts and stare like a fool at a tennis match. Euro and Yen are oversold above all measure, US dollar is overbought by same measure. One has to suspect the dollar's rise is one of those fads hedge funds fall prey to, which will end as suddenly and sharply as it began. But one has been fooled before.

Stocks tried to rally, but ran out of steam before noon and slid down the mountain. Dow lost 28.32 (0.17%) to 17,042.90 (sliding toward 17,000) while the S&P500 lost 5.51 (0.28%) to 1,972.29. Neither index could close above its 20 day moving average, and the DandP500 couldn't even close above its 50 DMA.

Dow in Gold rose 0.17% today to 14.07 oz (G$290.85 gold dollars), still sawing back and forth as it tops. That may sound like a presumptuous pronouncement, but everything about the Dow in Gold is headed down, all indicators.

Dow in silver, on the other hand, won't stay put. Added 2.19% today (thanks to silver's big fall) and ended at 999.17 oz (S$1,291.86 silver dollars). Ain't long for this world up there.

I waxed curious about this here big rally of the Dow in Gold and Dow in Silver since August 2011. See, they both fell about 90% from their 1999 and 2001 peaks, so I was curious to see how much of that fall they have corrected in this mighty rally. Of that 2,261 oz DiS fall, today brings it to a 33% correction. Of the Dow in gold's 38.66 oz fall from its roughly 45 oz high in 1999, today's close has corrected about 22%.

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.