Friday, December 12, 2014

The Gold Price Rose $31.90 or 2.7 Percent this Week Closing at $1,222.00

5-Dec-1412-Dec-14Change% Change
Gold Price, $/oz.1,190.101,222.0031.902.7
Silver Price, $/oz.16.19617.0190.8235.1
Gold/Silver Ratio73.48171.802-1.679-2.3
Silver/gold ratio0.01360.01390.00032.3
Dow in Gold $ (DIG$)311.94292.33-19.61-6.3
Dow in gold ounces15.0914.14-0.95-6.3
Dow in Silver ounces1,108.841,015.38-93.46-8.4
Dow Industrials17,958.7917,280.83-677.96-3.8
US dollar index89.3688.33-1.03-1.2
Platinum Price1,219.001,231.0012.001.0
Palladium Price803.20816.5513.351.7

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 lost $3.10 on Comex to close at $1,222. Silver shaved off 4 cents to $17.019.

To last week's higher weekly close, the silver and GOLD PRICE added another this week. Both need a little higher prices to close above their 20 week moving averages.

Both gold and SILVER PRICES flatlined today as most of the last three days. Short term traders closing out positions before the weekend suffice to explain today's losses. Next week both ought to rise -- "ought" means they must do that or evidence that they have lost steam. I expect to see higher prices next week and for the gold price to challenge $1,255. I also expect this stock plunge to snowball.

Last week I made that horrifying simile comparing the stock market to a meth addict. I said then the collapse was not far off. Well, the cops showed up this week. Dow lost 3.8%, S&P500 skidded 3.5%. Lo, the dollar index weakened as well, off 1.2% weakened as well, off 1.2% for the week.

West Texas Intermediate Crude Oil fell another 2.81% today to $57.49/barrel. Ouch. Bad news for the shale oil industry. Bad news for stocks.

Stocks fell from the open and never recovered. S&P500 lost 315.51 (1.79%) to 17,280.83. S&P500 lost 33 (1.62%) to 2,002.33. Mercy. These are not happy charts. Both skidded to a stop just above their 50 DMA and closed on the low. That tells you it is bad and getting worse. Dow remains below the uptrend line from the 2009 lows. When it reaches 1,975, the S&P500 will be below the same line. All indicators negative and getting negativer.

Jaws of Death or megaphone pattern in the Dow in Gold and Dow in Silver has snapped shut like a gator.

Dow in gold chart is on the right:

The broadening top (Jaws of Death) has been confirmed by a sharp breakdown that today took the Dow in Gold way below its 50 DMA (G$296.85 or 14.36 troy oz.). It fell 1.34% to close at G$292.30 gold dollars (14.14 oz). No support stands ready to catch it between here and the 200 DMA (G$274.93 or 13.3 oz). Will keep falling.

Dow in silver kept plunging. Lost 1.57% to S$1,309.89 silver dollars (1,013.12 oz) and stopped at the uptrend line from July of this year. Some support may occur around the last low at S$1,196.81 (925.56 oz). 200 DMA stands at S$1,158.26 (895.84).

Dow in silver chart is on the left:

As long as these indicators continue plunging, they are witnessing that (1) the lows on 1 December were THE lows for the 3-1/2 year correction, and (2) stocks have peaked and turned down.

US dollar index dropped today (down 29 basis points to 88.33) but has not yet broken down although it has walked through the bottom boundary of the rising wedge. Close below 87.50 will break it.

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.