|Gold Price, $/oz||1,211.70||5.00||0.41%|
|Silver Price, $/oz||17.19||0.01||0.06%|
|Dow in GOLD $s||285.24||3.49||1.24%|
|Dow in GOLD oz||13.80||0.17||1.24%|
|Dow in SILVER oz||972.57||9.69||1.01%|
|US Dollar Index||85.76||-0.12||-0.14%|
|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|
Both silver and gold prices gave us a key reversal's second half, a higher close today. The GOLD PRICE now must climb through that 20 DMA above at $1,220.89, but in fact needs to close above $1,224, the last high, and $1,237, the high before that. The great barrier in front of gold is $1,300.
The SILVER PRICE today traded up to the downtrend line (from the end-August high) but stopped there. MACD indicator is about to turn up. Silver must keep on progressing, moving through $17.75 then $18.00.
The white metals are also rallying with us. Platinum made a key reversal yesterday and today, and added 1.12% today for a $1,260.70 close. Palladium made a key reversal and rose 2.51% today to $787.30. Both platinum and palladium had collapsed after September 1, and both fell through their 200 DMAs. It strengthens the case for silver and gold to have the white metals rallying, too.
So far, so good, but a mere common correction might do all this, especially after as long as metals have been oversold. They need to keep making steady progress.
'Twould be a good idea to buy some here. ALSO, if you are ever going to swap gold for silver, now is the time.
Okay, we got the signals we needed. We're on the road, pot-holed though it be.
US dollar index, scrofulous parasite on world prosperity, dropped 12 basis points (0.14%) to 85.76. This ain't as much as I'd like, but it is a lower close, and that's all that's needed. The lethargic euro rose 0.13% to $1.2670, and looks none too pert still. 20 DMA floats above at $1.2783. Yen, on the other hand, burst through its 20 DMA (92.20) and added 0.57% for a close at 92.47 cents/Y100. Yen appears to be rallying seriously. Euro appears to be cataleptic or deeply depressed.
Fear sent investors racing out of stocks and into US bonds, driving the price up and the yield down. 10 year treasury note yield fell 3.09% to 2.350%.
Put on black and weep and mourn, stocks! Another triple digit down day for the Dow, its fifth out of eight triple digit days since the 19 September high. Dow dove 272.52 (1.6%) to 16,719.39. S&P500 plunged 29.62 (1.51%) and perched on the low at 1,935.10. For both indices, this is the lowest close, but not the lowest price, for this move. They left their 20 and 50 day moving averages behind so long ago there's no point in mentioning them. All indicators are working for Sir Isaac Newton -- gravity-ward.
Dow in Gold and Dow in Silver are feeding my fire. Dow in gold ended the day at G$285.89 gold dollars (13.83 oz.), below the 20 DMA at 13.96 and down a choking 1.72%! All indicators down, all systems go for "a stock top and gold and silver bottom behind us." Yet humility and the still-remembered bruises of earlier episodes constrain me to await more confirmation.
Dow in silver fell 0.69% to S$1,258.63 silver dollars (973.47 oz), lower than the last low. Also, the MACD turned down today. Rate of change has crashed.
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.