|Gold Price, $/oz||1,195.50||-2.00||-0.24%|
|Silver Price, $/oz||16.13||-0.16||-0.96%|
|Dow in GOLD $s||309.34||0.89||0.29%|
|Dow in GOLD oz||14.96||0.04||0.29%|
|Dow in SILVER oz||1,104.44||11.13||1.02%|
|US Dollar Index||88.17||-0.19||-0.22%|
|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 empyrean ringeth not with paeans of praise for the metals. The GOLD PRICE has reached its 50 day moving average and stalled, about what you'd expect for no more than a correction from the waterfalls of October. Throwing the steely eyeball on it, gold needs to punch through $1,206.74 (the 50 DMA) and march right on towards $1,255.60. Otherwise more downside loometh.
The SILVER PRICE has lacked even more luster. It hasn't even reached its 50 DMA. Weakness and sloth here does not point to good times ahead. Silver needs to rise through $17.00, and soon.
Yes, there are good signs on both charts, hopeful signs, signs that suggest both ought to float higher, but spinning wheels just burns up gas. They both have to move ahead, and this week -- O Mercy -- threatens to be a dead one.
In plain English, silver and gold prices must rise smartly, or fall smartingly.
For the third day running the Dow and S&P500 have made new highs by small numbers. Dow today added 0.4% or 7.84 to 17,817.90. SP500 rose 5.91 (0.29%) to 2,069.41. You tourists, hear me say this: this ain't normal. This persisteth not.
Dow in gold closed at 14.904 near its 20 DMA (14.86 oz) where it closed Friday.. Dow in silver punched through its 20 DMA on Friday, but closed a little higher today at 10,8798. Still below the 20 DMA at 1,089.79. All indicators point down.
US dollar index lost 19 basis points (0.22%) and ended at 88.17. Right now the dollar is key to silver and gold. If it moves higher, as it bids now to do immediately, It will weigh heavily on metals. More important, in my little mind, is that stocks turn down against silver and gold, but a rapidly rising dollar will surely hurt metals.
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.