| 23-Jan-15 | 30-Jan-15 | Change | % Change | |
| Gold Price, $/oz. | 1,292.60 | 1,278.50 | -14.10 | -1.1 |
| Silver Price, $/oz. | 18.284 | 17.192 | 1.092 | -6.0 |
| Gold/Silver Ratio | 70.696 | 74.366 | 3.670 | 5.2 |
| Silver/gold ratio | 0.0141 | 0.0134 | -0.0007 | -4.9 |
| Dow in Gold $ (DIG$) | 282.63 | 277.54 | -5.09 | -1.8 |
| Dow in gold ounces | 13.67 | 13.43 | -0.25 | -1.8 |
| Dow in Silver ounces | 966.56 | 998.43 | 31.87 | 3.3 |
| Dow Industrials | 17,672.60 | 17,164.95 | -507.65 | -2.9 |
| S&P500 | 2,051.82 | 1,994.99 | -56.83 | -2.8 |
| US dollar index | 95.24 | 94.96 | -0.28 | -0.3 |
| Platinum Price | 1,268.00 | 1,239.20 | -28.80 | -2.3 |
| Palladium Price | 775.40 | 772.70 | -2.70 | -0.3 |
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| 3 Day Gold Price Chart |
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| 30 Day Gold Price Chart |
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| 5 Year Gold Price Chart |
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| 3 Day Silver Price Chart |
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| 30 Day Silver Price Chart |
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| 5 Year Silver Price Chart |
On the weekly chart the SILVER PRICE has risen through its 20 Week moving average & is on the verge of piercing the downtrend line from the October 2012 high. Gold's weekly shows it ABOVE the downtrend from the October 2012 high & above its 20 week MA. Pile up the good news.
Monthly chart shows at that last low cut into the uptrend line from 2001, but now rests comfortably above it. Silver seconds that.
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| Gold Price |
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| Silver Price |
I would be buying silver & gold.
I reckon the bottom rail's up on the top now, or moving close to it. Bears hit silver & gold with everything they had plus halitosis & couldn't break 'em. Stocks had one up day of 225 points up and you'da thought the Last Trump had blown the way the media played it up. Good thing Dow did rise that one day, or it would have lost not the 507.65 points it did lose this week, but 706.73. US dollar index is wavering & juberous (Southern for "dubious.") I bet y'all didn't believe me when I opined yesterday that we were seeing the gold correction low. Way-ull, I don't blame y'all. I ain't nothing more'n a nat'ral born durned fool from Tennessee. No way I could be right and all them newspapers & websites & sintrul bank peacocks wrong.
US dollar index, seems to me, is ailing -- not lying down sick yet, but just got a runny nose. Now y'all listen to what I'm saying. What has been driving the US dollar? Gazillions of hot money following a trend. Y'all know trend followers have all the loyalty of a brindle cat, right? Soon as they smell blood, they'll belong gone. Other than the little interest rate differential on the dollar's side, that hot money's been all it had going for it. Now it built a little tower top beginning last Friday, and has traced out a little even-sided triangle -- blowing hot & cold out of both sides of its mouth, cause those triangles can break either way. Suppose it cracks, & all them hot money jockeys start remembering 15 January and the Swiss Franc? Might set 'em to running like a scalded dog out of that dollar. That Humpty Dumpty won't be nothing like the scrambled mess a falling dollar'd leave behind.
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| USD |
Euro fell 0.32% to $1.1285. Mercy, if this is making a bottom crows could learn to knit with their beaks. Yen has backed itself clean into the nose cone of an even-sided triangle & is above its 50 & 20 DMAs. Could surprise everybody & rally. Gained 0.61 to 85.07c/Y100.
West Texas Intermediate Crude rose 8.19% today & closed above its 20 DMA. Looks like that was a little double bottom after all. My, wouldn't a sudden rise in oil catch them trend followers looking t'other way?
Stocks -- well, it just don't seem gentlemanly to pick on 'em after such a sorry week, like kicking a man when he's down, but if you want to win now, hardly anything'll take the fight out of a man like a hard kick to the short ribs when he's down. Cleaner than gouging eyes.
Dow today lost 251.9 (1.45%) to 17,164.95, breathing hard down the neck of that December low again (17,067). S&P500 lost only 1.3% (26.26), but looky there! It closed below 2,000 at 1,994.99. That's got to be plumb demoralizing to them fine & shiny Wall Street folks.
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| Dow |
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| S&P500 |
S&P500 didn't quite make the same triangle formation, more like a falling triangle, but it could also be a falling wedge. 200 DMA is at 1974.61, December low at 1972.56. Any break of those milestones would break the S&P500.
Dow made an even sided triangle & fell out of it this week, traded back into it yesterday, but closed broke down again today. It's just above the 200 day moving average (17,062) & the December low. That heavy red line is the uptrend line from the March 2009 low, & yes, the Dow is and has been for a long time below that line. Next move should be earthward.
Now y'all know that a FAILED turnaround is the worst sort of news, because it confirms the trend. Thus the Dow in metals yesterday rose smartly while somebody whacked metals & somebody else bought S&P500 futures to run up stocks. The Point: Dow in metals lost everything or more today that they had gained yesterday.
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| Dow in Gold |
On silver's sudden weakness yesterday the Dow in silver jumped all the way up to its 20 DMA & back inside the Gator Jaws. Wiped about half of that out today & closed at S$1,286.18 silver dollars (994.78 oz), down 3.22%. Near to falling through the 200 DMA.
Confirmations keep piling up that the trend of stocks versus silver & gold has turned DOWN & the price trend for silver & gold has turned UP. Pile up the good news.
I am stuffing rags in my mouth trying to keep from crowing. It's hard to write, though, over a mouthful of rags, so I'm going to take the rags out & I promise I won't say anything about calling that gold bottom yesterday. I hate it when people say I told you so.
Y'all enjoy your weekend.
Aurum et argentum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
The-MoneyChanger.com
© 2015, 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.
