Monday, November 03, 2014

The Gold Price Fell $1.80 to $1,169.30, Silver Rose to $16.18

3-Nov-14PriceChange% Change
Gold Price, $/oz1,169.30-1.80-0.15%
Silver Price, $/oz16.180.100.59%
Gold/Silver Ratio72.291-0.539-0.74%
Silver/Gold Ratio0.01380.00010.75%
Platinum Price1,243.707.500.61%
Palladium Price804.0512.601.59%
S&P 5002,017.81-0.24-0.01%
Dow in GOLD $s307.010.040.01%
Dow in GOLD oz14.850.000.01%
Dow in SILVER oz1,073.65-7.85-0.73%
US Dollar Index87.410.440.51%

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 fell $1.80 (0.15%) to $1,169.30 on Comex. Silver "rose" 9.5 cents to $16.175.

Looking at the silver and GOLD PRICE charts, the only thought that occurs is, "Bottoms aren't formed this way." Silver and gold are both oversold, but some other progress is needed to point to a bottom. The only SOLID bit of evidence that points to a bottom is the premium on US 90% coin which during this October has risen from 75 cents an ounce over spot at wholesale to 160 cents. That's a very strong move and signals that 90% supply has dried up.

Now the silver and gold markets are comatose. The SILVER PRICE today ranged from $1574 to $1622. Gold from 1161 to 1173.40. Nothing happening.

For now I can only watch and wait.

Friends, I am trying very hard today to be nice, but, y'all, it just ain't workin'. So I'm gonna bite my lip and now say anything disrespectful to our Masters in Washington and Wall Street. I promise.

US Dollar Index today rose to territory not seen since June 2010. It rose 0.51% (44 basis points) to 87.41. Technical presumption must be that it will rise much further, having broken out of an area where it has been trapped for three years. Fed must be crazy, as a higher dollar will create all sorts of problems, but there it is. And remember: currency exchange rates are ALL manipulated by central banks. This has not happened because the Fed was caught napping.

Rather than make a secret agreement to depreciate its exchange rate, the Japanese just publicly announced they were going to dilute the yen the way a cheap saloon keeper dilutes his whiskey: to the max. Yen today gapped down again and closed at 87.74 cents to 100 yen, a 1.46% drop from Friday.

Euro has all but broken down. Dropped 0.27% today to $1.2486, a new low close for the past 6 months, but not a dramatic waterfall like the yen. Doomed to fall more.

Stocks caught their breath today after last week. Dow inched off 0.14% (24.28) to 17,366.24. S&P500 backed off a tiny 0.24 to 2,017.81.

Now ask yourself how stocks will yet go vastly higher after a five year run? Technically they appear to be topping and this appears a double top, but the central banks are in a tag team match, passing quantitative easing around the globe. Now it's Japan's turn. Figure it out, they're subsidizing a carry trade. Bank of Japan announces it will mightily depreciate the yen, speculators borrow yen at zero percent, sell the yen for dollars and invest in stocks that the inflation is driving up, and cannot lose. The money they borrowed is depreciating, and the depreciation is driving world stock markets higher.

Dad durn! I wish I could get that job.

Dow in gold rose 0.18% to 14.85 oz (G$306.98 gold dollars). Stalled at a resistance line. Dow in silver dropped 0.33% to 1,071.92 oz (S$1,385.92 silver dollars). Is another leg up in its future?

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.