|Gold Price, $/oz||1,228.90||-2.60||-0.21%|
|Silver Price, $/oz||17.13||0.05||0.30%|
|Dow in GOLD $s||294.93||-3.88||-1.30%|
|Dow in GOLD oz||14.27||-0.19||-1.30%|
|Dow in SILVER oz||1,023.36||-18.81||-1.80%|
|US Dollar Index||88.22||-0.50||-0.56%|
|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 SILVER PRICE has left its 20 DMA and downtrend line from the July high way behind, and has set its eyes on the downtrend form the August 2013 high ($17.64). But all is Chin-boogey until it climbs above the $18.60 line that for so long served as support and now offers resistance coming from the underside.
Potentially pivotal is the GOLD PRICE bursting through the downtrend line from the October 2012 high. Yes, gold closed above that yesterday and closed on that line today. Given the stage of this advance, the gold price ought to shock its nay-sayers in the next two weeks.
Silver and gold prices will likely rise tomorrow while stocks and the dollar fall. Time to start buying silver and gold.
Yesterday I failed to mention that one cause of the turmoil and slide in stocks worldwide was the Greek prime minister announced snap presidential elections, and the socialist party most likely to win might wreak havoc with the status quo, even withdraw from the Euro. As throughout the global financial system, no problems have been corrected in Greece, they've just papered over debt with more debt. If Greece comes unglued, the whole EU might split at the seams. Greek stock market lost 13 percent in one day. Chinese and other stock markets also fell.
WHAT IN THE WORLD DOES THIS MEAN Department:
The US Treasury is quietly ordering "survival Kits" for employees of the Office of the Comptroller of the Currency that examines banks all over the country. Dept. of Treasury sent out a solicitation for bids for the survival kits. Wow. What are they expecting?
Same day THIS comes in. A friend informs me that at least one commodity brokerage in Chicago is having mandatory "Security awareness training." Reckon they're afraid the mob will drag the brokers out into the streets and hang them from the same lamp posts as the bankers?
Is this mere coincidence, or is fear bubbling up out of the Establishment like hot gas out of the LaBrea tar pits?
Nat'ral born durn fool from Tennessee that I am, I warned y'all yesterday to watch out for them stocks. I ain't gonna remind y'all no more, 'cause they's nothing I hate like people who say, "I told ya so."
Dow shed 268.05 points (1.51% -- whew!) to 17,533.15, below the 20 DMA (17,767.68) and acting just as it did in early October on the way to fainting. S&P500 scraped off 33.68 (1.64%) to 2,026.14. Broken. Investors are looking at AVERAGES that say December is always a great month. Yeah, but remember that the AVERAGE height of a seven foot girl and a 4'6" foot girl is 5'9", but when you take 'em to supper, one is still going to be awful tall and the other awful short. Average don't promise nothing about "next".
Dow in Gold fell 0.98% to G$295.81 gold dollars (14.31 troy oz), and landed below its 50 DMA (G$296.64). Hath already fallen through the bottom boundary of the Broadening Top (Megaphone) formation. The Jaws of Death have snapped shut.
Dow in silver likewise sliced through its 50 DMA (S$1,344.04 or 1,039.53 oz) and fell 1.33% to close at S$1,327.62 (1,026.83). Hath also fallen thru the bottom limit of the megaphone.
Both the DiG and DiS will fall lower, UNLESS the DiS cannot fall through the larger trading channel bottom boundary (tomorrow about S$1,309.74 or 1,013 oz). Both will give final confirmation ONLY when they dive beneath their 200 DMAs, now G$274.73 or 13.29 oz and S$1,154.95 (893.28 oz).
US dollar index today lost another 50 basis points (0.56%) and closed near the bottom of the day's range AND beneath its 20 DMA (88.24). It has now fallen out of the rising wedge formation we've been watching but I will not stop worrying until it closes below 87.60.
Euro is trying to break out upside through the top of its falling wedge, but has run into knee-deep molasses. Rose 0.55% today to $1.2442, barely above its 20 DMA. Higher price tomorrow would prove a breakout.
Yen is on a rip-roarin' tear, up 1.4% today to 84.73 cents/Y100. Above the 20 DMA. Above its short term downtrend line. Looking buffed.
Oil's fall has not stopped yet. West Texas Intermediate Crude dropped another 3.24% today to end at $61.22/barrel. RSI says "Way oversold" but no sign of a turnaround yet.
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.