Wednesday, October 01, 2014

Silver and Gold Prices Rose with the Gold Price Up 0.34 Percent at $1,214.60

1-Oct-14PriceChange% Change
Gold Price, $/oz1,210.504.100.34%
Silver Price, $/oz17.210.201.20%
Gold/Silver Ratio70.337-0.603-0.85%
Silver/Gold Ratio0.01420.00010.86%
Platinum Price1,287.70-10.80-0.83%
Palladium Price787.708.751.12%
S&P 5001,946.16-26.13-1.32%
Dow in GOLD $s286.98-5.06-1.73%
Dow in GOLD oz13.88-0.24-1.73%
Dow in SILVER oz976.45-25.72-2.57%
US Dollar Index86.00-0.40-0.46%

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
Finally, finally the GOLD PRICE rose! And silver! Gold climbed 0.34% or $4.10 to $1,214.60 while silver skyrocketed 20.4 cents (1.2%) to $17.21. Never thought I'd be thankful to see silver at $17.21, but I am.

Yesterday SILVER PRICE low came at $16.85, today at $16.86, so there's a little double bottom there. On a daily chart the moves looks impulsive, that is, it appears that markets direction is UP.

My gut tells me that today was the turn for metals, but then, my gut also tells me sometimes to eat Thai food, so my gut's not too reliable. Before I will trust my gut or my instinct, I want that silver to PROVE itself by smashing through $17.50, and then through the downtrend line at $17.75, and pushing on toward the 20 DMA at $18.24. Y'all watch it now! When that silver makes its mind up to rise, it'll blind you.

The GOLD PRICE has made a two day bottom about $1,205, but was stopped today by $1,220. That won't do. I want to see gold beat $1,232 (20 DMA). I remind y'all that gold has walked through its downtrend line, so it stands outside the downtrend but has not yet begun to rally seriously.

Yea! MACD turned up for gold today, and it is climbing up out of oversold (RSA at 33.57).

'Tis nothing yet more than a feeling, but with stocks plummeting and the dollar hesitating, things look better for silver and gold prices.

Whooo-eee! Them stocks took a bad beating with an uglystick today!

Dow dove 238.19 (-1.4%) to land at 16,804.71. S&P500 plunged 26.13 (-1.32%) to 1,946.16.

It's always helpful to take stock (owch!) of these falls. Here's how far indices have fallen since their last highs:

Dow Jones Industrial Average, -3.2%

S&P500 -3.6%

Nasdaq Comp., -4.1%

Nasdaq 100, -3.3%

Wilshire 5000, -4.0%

Russell 2000 small cap, -10.55%.

Now look inside the Dow and S&P500. Both have fallen below their last lows (16,937 and 1,978). Both are below their 20 and now their 50 day moving averages (16,932 and 1,976). Relative strength indicators stand below 50 mark (40.33 and 36.81). MACD and full stochastics point down. Finally, volume is rising as price falls, reinforcing the move and building steam. The more it falls, the more people sell.

Whether we saw the ultimate top in September or that comes later in the year, stocks are now in full-gear correction mode. Durn! I forgot to mention that the Dow has fallen through its uptrend line from March 2009.

Dow in gold flashed its first confirmation of a trend reversal downwards today by closing below the 20 DMA (13.87 oz or G$286.72 gold dollars) at 13.83 oz (G$285.89), down 1.92%. All indicators point down, another reason I believe that the Dow in Gold has pinpointed the top in stocks.

Numbers for the Dow in Silver showing up on Stockcharts today differ from what I saw and reported yesterday, but because it was likely the high, I report it to you at 1,004.59 oz (S$1,298.86 silver dollars).

Today the Dow in Silver fell 2.55% to 979.01 oz (S$1,265.79). DiS still needs to close below its 20 dma (938 oz now or S$1,212.77 to confirm reversal, but that's not in doubt. Oversoldness is rapidly falling (RSI now 68.29), other indicators rolling over earthward.

By the way, a "dollar" of silver is defined by law as 371.25 grains or 0.7734375 troy ounce. That means that S$1,000 contains 773.4375 ounce of silver newly minted, and that $1.2929 = one troy ounce.

US dollar index backed down four basis points to 86, so has not yet evidenced a reversal. Remains historically overbought.

Euro lost 0.1% to end at $1.2640. It giveth no sign of turning up, but has left behind two gaps, which looks like a completed move.

Yen got tired of people calling it "Skinny" and kicking sand in its face and today rared up 0.585 to 91.74. That appears to be a reversal. MACD has turned up, but still needs to rise more to confirm.

Mercy, me, look at that 10 year treasury note yield! That thang pulled the plug today, falling 4.19% to 2.403%. Remember that bond yields move opposite to bond prices. People fleeing stocks are pressing into bonds for "safety." Ain't that a joke, now, anybody fleeing to the sorry debt of the US Government priced in scrofulous sinking dollars! I will admit the US government hasn't defaulted on its debt as often as Argentina, but I count at least three times, not counting the daily default by chronic, intentional inflation. Dollars tomorrow will always be worth less than dollars today.

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.