|Gold Price, $/oz||1,233.60||4.30||0.35%|
|Silver Price, $/oz||17.35||0.06||0.34%|
|Dow in GOLD $s||273.40||-1.06||-0.38%|
|Dow in GOLD oz||13.23||-0.05||-0.38%|
|Dow in SILVER oz||940.19||-3.55||-0.38%|
|US Dollar Index||85.92||0.39||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|
The GOLD PRICE is knocking at the ceiling of $1,237, knocking, knocking, but hasn't yet broken through. The SILVER PRICE is knocking at the $17.60 ceiling, but so far has only bloodied its knuckles.
Slowing down here is poor form. Silver has yet to climb above its 20 DMA (17.51). Action of the last four weeks still looks like a bottom, but silver needs to prove itself soon. Advance is getting bogged down. Silver is liable to break through $18.00 suddenly and not look back.
Stocks climbed on a ledge and stopped plunging over that waterfall today, but the damage has already been done. Yesterday both the Dow and the S&P500 broke their August lows, further confirming a down trend. S&P500 also broke its uptrend line from March 2009 when the bull phase began. Both also crashed through their bottom channel lines, which might signal a pause or an acceleration of the fall.
Dow lost 5.88 (0.04%) to 16,315.19. S&P added 2.96 (0.16% to 1,877.70. Break yesterday below 1,900 is liable to demoralize stock investors pretty badly.
Dow in silver bounced up at day's end, up 0.6% to $1,213.71 silver dollars (938.73 oz). It spent 16 months forming a big wedge, broke above the top limit in September, and today plunked down against it. Dow in Silver ought to fly like a man jumping off the Yazoo River bridge with an anvil tied to each ankle.
Dow in gold hooked up today, 0.33% to G$273.69 gold dollars (13.24 oz). Still in freefall below the 20 and 50 DMA with all indicators pointing down.
US dollar index rose 0.45% (39 basis points) to 85.92. Question is not whether it is correcting, but how far it will fall. Investors must be POURING out of stocks into bonds. Ten year bond yield today gapped down mightily to 2.206%. Clearly the flight into treasury bonds is on.
Yet it didn't depress the yen too much. It lost 0.17% to close at 93.42 cents/Y100, but is steady rallying. Euro fell back 0.75% to $1.2660. Having a hard time getting off the ground.
I believe, by the way, that my wife has prepared a pullet pot pie for supper tonight.
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.