Thursday, November 20, 2014

The Gold Price Closed at $1,190.70

14-Nov-1420-Nov-14Change% Change
Gold Price, $/oz.1,185.001,190.705.700.5
Silver Price, $/oz.16.3116.1330.177-1.1
Gold/Silver Ratio72.65573.8051.1501.6
Silver/gold ratio0.01380.0135-0.0002-1.6
Dow in Gold $ (DIG$)307.63307.60-0.03-0.0
Dow in gold ounces14.8814.880.00-0.0
Dow in Silver ounces1,081.221,098.2417.021.6
Dow Industrials17,634.7417,717.8883.140.5
US dollar index87.5887.630.050.1
Platinum Price1,213.601,206.10-7.50-0.6
Palladium Price771.00766.80-4.20-0.5

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
I'm sending y'all the weekly report on Thursday because I will be travelling tomorrow. Where to? Where does somebody from middle Tennessee go for a rest? Why, East Tennessee, of course.

The GOLD PRICE closed the day yesterday below its 20 day moving average, but recovered today above that mark. Silver didn't quite close over its 20 DMA today, $16.133 vs $16.18. Next move will be up, and strongly up. A possible bottom confirmation is forming.

The SILVER PRICE must stop playing around and move through $16.50. The gold price has been pushed back at $1,200 like Superman before Kryptonite. If the next strong move is not up, they're in trouble.

How confident am I? I am way long silver and gold.

Yesterday was a tussle for silver and gold after the close. The Swiss have a referendum before them to force their central bank to restore their gold reserves to 20%. If the referendum passes, it means the Swiss National Bank will have to buy (as I remember) 300 tonnes (9.6 million oz) a year for five years to bring gold reserves up to that level. A poll yesterday said the referendum likely won't pass, so gold dropped nearly $20. Whoops, then the FOMC minutes came out, and didn't look nearly as hawkish/dovish as expected (I think it was they intimated even long to higher interest rates) and gold jumped back up. After all the jostling, gold today closed $1,190.70, down $2.90, silver down 15.7cents at 1613.3c.

Don't take you eye off the ball! Point is that they were both driven back to and below support (1600 and $1,175) and they bounced back above support. Strong performance, although silver laggeth still. To be knocked down is human; to recover, sublime.

And in the end the GOLD PRICE closed higher for the week, and most likely both metals will end the week tomorrow higher.

S&P500 eked out a new high today by about one point. Rose 4 (0.2%) to 2,052.76 while the Dow rose only 32.15 (0.18%) to 17,717.88. This will end badly, and soon.

Dow in silver ended at 1,098.24 oz (S$1,419.94), closing in on its 20 Dma (1,079.75 oz). Uptrend has broken. Dow in gold closed 14.88 oz or G$307.60, down 0.52%. Uptrend also broken.

US dollar index lost 4 basis points today, not a killer but another in a long string of up-down-go-nowhere days. Next big move is down.

Y'all enjoy your weekend!

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.