Wednesday, December 31, 2014

The Gold Price Ended the Year at $1,183.90 Down 1.5 Percent for the Year

31-Dec-14PriceChange% Change
Gold Price, $/oz1,183.90-16.30-1.36%
Silver Price, $/oz15.56-0.67-4.16%
Gold/Silver Ratio76.0622.1582.92%
Silver/Gold Ratio0.0131-0.0004-2.84%
Platinum Price1,208.90-9.20-0.76%
Palladium Price798.40-5.80-0.72%
S&P 5002,058.90-21.45-1.03%
Dow in GOLD $s311.201.470.47%
Dow in GOLD oz15.050.070.47%
Dow in SILVER oz1,145.0737.743.41%
US Dollar Index90.620.330.37%

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
Please keep this last commentary for the year, since it has yearly closing prices if you want to update your own portfolio.

The GOLD PRICE lost 1.4% or $16.30 to close at $1,183.90 on Comex. Silver lost all yesterday's gains and then some, 67.5 cents or 4.2% to $15.565.

Lo, I will not speak of the Invisible Hand belonging to the NGM, no, not but this once, for it lieth crossways in my craw. In 1997, The gold price closed the year at $292.50; in 1998, $289.20; in 1999, $291.50. What do y'all think the chances are in nature, that any market would close three years running within $3.30 of itself? Sure, sure. And how neat, to whack gold right at year end to close it below last year? Clever as a junk yard rat.

The GOLD/SILVER RATIO probably wrecked my hypothetical diamond from yesterday, but that's not sure yet. It did bounce to a new high close at 76.062.

Why concern myself with that? Because if that ratio gets away skyward, it'll run like a helium balloon toward 84, the high we saw in the 2008 panic. That implies an unhappy world on all sides.

The gold and SILVER PRICE are churning back and forth over the same range, from $15.50 to $16.50 and $1,180 to $1,205. This doesn't say anything, but it also doesn't say anything strong. It's talking out of both sides of its mouth, like the man who killed his parents then threw himself on the mercy of the court because he was an orphan.

All we can do is set boundaries. If silver closes below $15.53, it will drop much further. If gold drops below $1,170, there will be more downside.

But let's wait and see what happens when the New Year opens. To you all I wish a blessed 2015, and, as the Germans say, a "good slide" into the New Year.

Here's performance for the year. First number is close on 31 December 2013, second number is close on 31 December 2014, and the third number is percentage change.

Dow, 16,539.58 vs. 17,823.07, up 7.8%

S&P500, 1,844.72 vs. 2,058.9, up 11.6%

US$ index, 80.084 vs. 90.620, up 13.2%

Gold, $1,201.90 vs. $1.183.90, down 1.5%

Silver, $19.339 vs. $15.565 , down 19.5%

Platinum, $1,371.10 vs. $1,208.90, down 11.8%

Palladium, $717.15 vs. $798.40, up 11.3%

West Texas Intermediate Crude, $98.70 vs. $53.71, down 45.6%

Res ipsa loquitur. The thing speaks for itself.

For the third day (for the Dow) and second day (S&P500) stocks slid, right heavily today. Dow lost 160 (0.89%) to 17,823.07; S&P500 dropped 21.45 (1.03%) to 2,058.90. Year end selling might underlay those drops, so maybe they don't mean too much -- but they are, after all, drops.

Dow in metals clawed back yesterday's losses. Dow in Gold added 0.54% to G$311.32 gold dollars (15.06 troy ounces). Dow in Silver jumped 3.37% to S$1,477.28 silver dollars (1,142.58 troy ounces). Both remain in Gator Jaws tops, which are making good their reputation for wearing out watchers with frustration and gnashing of teeth.

US Dollar index keeps on edging up, no doubt now receiving some boost from folks fleeing euros and the looming euro crisis in Greece. After everybody sobers up next year, that will be the crisis demanding their attention.

US dollar index gained 33 basis points (0.37%) to 90.62. Euro is at two year lows and new lows for the move. Lost another 0.5% today to end at $1.2097. No turnaround in sight. Yen lost 0.19% to 83.55 cents/Y100. Has a tiny uptrend going, but 'tain't much.

Well, Duke the 114 year old Chocolate Labrador Susan and I have been babysitting for my daughter-in-law like to killed both of us. Day before yesterday Susan let him out to, well, to do his business. Fifteen minutes or so later she went outside: NO DUKE. She called. She searched. She went from one fence to the other and to the road: NO DUKE. I came out. I called, I searched, I came up Duke-less. Susan had an appointment and had to leave. I searched and called more, but no Duke.

We were both sick. We've been praying he wouldn't kick the bucket on our watch, while we are babysitting him, and here he goes and vanishes altogether! How are we going to break this to Victoria? We can't even show her the grave.

Susan drove home, dreading what she might find. Was Duke somewhere along the road, smashed beyond recognition? Had he wandered off into the woods? Been eaten by coyotes?

Nope, he was lying in front of the door, waiting to go in where it was warm. He may be old, but he has worn my nerves plumb out!

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.