Wednesday, November 05, 2014

Silver and Gold Prices Free Fell Today with the Gold Price Losing $22.00 Closing at $1,145.40

5-Nov-14PriceChange% Change
Gold Price, $/oz1,145.40-22.00-1.88%
Silver Price, $/oz15.42-0.51-3.20%
Gold/Silver Ratio74.2900.9931.35%
Silver/Gold Ratio0.0135-0.0002-1.34%
Platinum Price1,207.80-14.10-1.15%
Palladium Price758.65-32.80-4.14%
S&P 5002,023.5711.470.57%
Dow in GOLD $s315.567.732.51%
Dow in GOLD oz15.260.372.51%
Dow in SILVER oz1,134.0342.563.90%
US Dollar Index87.540.430.49%

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
Republicans whacked silver and GOLD PRICES over the head. On Comex silver plunged 50.9 cents (3.2%) to close at $15.418. Gold dove $22 or 1.9% to $1,145.40.

Merciful heavens! I'm reading people crowing about gold going to $700 and I guess if it does they'll be charging you to haul away silver by the truckload. I just can't get it into my head that the Fed is that good, but maybe they're not. Maybe the whole world is just that unhinged and fluid. Anyway silver and GOLD PRICES just free-fell today, and nothing is turning up. When gigantic amounts of paper silver can be sold versus the available physical supply, and when leveraged players all hop on a market, y'all can throw statistics out the window. It's gonna fall till it stops.

The gold price needs to close above $1,170 even to hint of a reversal. The SILVER PRICE needs $16.25. They were simply slammed with selling that began about midnight Eastern time. Too much weight on the selling side.

I reckon y'all who believe the Republicans are going to save the country are preening your feathers today. Personally I couldn't slip a cigarette paper into a slot the size of the difference between Democrats and Republicans, but I wish y'all well.

The US Mint is temporarily sold out of silver American Eagles following "tremendous" demand in the past several weeks. The mint will continue striking 2014 dated coins. This announcement indicates strong physical demand.

However, silver American Eagles are the WORST buy in silver with the highest cost per ounce of all bullion products. Worse yet, premium always disappears over time, so you won't recapture that premium when you sell.

Speaking of silver, today I did one of the best gold to silver swaps I've every done. Person had bought gold one day off the silver top in April 2011 when the ratio was 31.082. He swapped it today for silver at 71.51:1 and took out 130% more silver than if he had bought silver in the first place. More than that, when silver and gold eventually begin rising again, he will have 2.3 times the silver ounces to enjoy that ride.

Apparently stock buyers and dollar investors are Republicans, or just any news will stimulate their buying gland. Either way, both the dollar and stocks rose.

Dow rose 100.69 (0.58% to a new all time high at 17,484.53. And the S&P500 was running right along its side, up 11.47 (0.57%) to 2,023.57, also a new high. And if you live in Oregon, Alaska, or DC voters approved a new high for you last night, legalizing small amounts of dope.

I hate to bust up the party, but it's a plain fact that both major stock indices are nearing the upper boundary of trading the last year. Now maybe they can punch through that and run higher, but it ain't likely. That line stands about 17,500 for the Dow and 2040 for the S&P500.

Listen, durn it! I ain't nothin' but a nat'ral born durned fool from Tennessee, but if I know anything, I know can't nobody PRINT their way into prosperity. Dumb as I look, I have read the history of every inflation on the face of the globe, and hadn't a one of 'em succeeded. Oh, yeah, for a while everybody was wearing silver slippers and clicking their heels, until the balloon burst.

Now on every side the poor public-miseducated folk think the Wise Central Bankers can print up some prosperity for us. I jes' have a single question: If printing money makes everybody rich, why don't we jes' print up a bunch of it and see? Fact is, that's what they're doing now, and the end will be weeping and wailing and gnashing of teeth, and maybe even decorating lampposts with central bankers.

Hack, hack, that bone's out of my throat, so on to the US dollar Index. It rose 38 basis points today (0.43%) to 87.54 and a new high for the move. Lo, it's true I am sour, but there's an old technical rule called the 3% rule, namely, that a market has to rise at least 3% to PROVE a breakout. Breakout for the Dollar index was about 85.5, so it really needs to reach 88.07 to achieve escape velocity. Maybe it can, I don't know. Don't nothin' make sense to me no more.

Yen is seeking the bottom of the scabrous, scurvy fiat currency heap. Fell another 0.97% 5today to 87.23 cents/Y100. No hope of a turnaround when the Bank of Japan has already poisoned the well. Euro doesn't look much better. It dropped 0.48% today to $1.2486, bumping along where the previous bottom was $1.2501. Nothing hopeful appears in the chart.

Remember, Remember, the fifth of November/Gunpowder, treason and plot! On 5 November 1605 the Gunpowder Plot was discovered. Guy Fawkes and other conspirators tried to blow up King James I while he opened Parliament, but the large stash of gunpowder was discovered. Fawkes was caught and tortured in Guantanamo, and he and seven others were later executed. Since then the English have celebrated Guy Fawkes Day by bonfires onto which they throw stuffed manikins called "guys." Oh, yes, some of them drink beer, too, and some drink whiskey.

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.