Monday, February 23, 2015

The Gold Price Declined $4.10 on the Comex to $1,200.30

23-Feb-15PriceChange% Change
Gold Price, $/oz1,200.30-4.10-0.34%
Silver Price, $/oz16.25-0.02-0.10%
Gold/Silver Ratio73.878-0.179-0.24%
Silver/Gold Ratio0.01350.00000.24%
Platinum Price1,166.30-6.60-0.56%
Palladium Price785.956.750.87%
S&P 5002,109.66-0.64-0.03%
Dow in GOLD $s312.010.660.21%
Dow in GOLD oz15.090.030.21%
Dow in SILVER oz1,115.09-0.35-0.03%
US Dollar Index94.680.250.26%

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
Silver & GOLD PRICES behaved opposite to the dollar index today, reaching their lows about 5:00 a.m. NY time, then peaking about noon. I reckon speculators thought a Greek deal would send silver & gold prices down, but when no deal showed up they backed out of their positions.

On Comex the GOLD PRICE declined $4.10 to $1,200.30. Silver dipped 1.6 cents to $16.247.

The SILVER PRICE ranged from $16.07 to $16.29, but closed only a couple of cents higher than its open. Once again in the nose cone of that falling wedge and below its moving averages. Hard to believe silver does not plan to show lower prices. A closed below $16.00 sends it tumbling but a close above $17.00 sends it for a balloon ride.

The gold price peaked through the uptrend line from the November bottom, not an encouraging harbinger. It tested the floor today at $1,190.60. If it finds itself much lower than that, it may mean a trap door has opened beneath it. Only a close above $1,210 would turn gold around short term.

2 Year Gold/Silver Ratio
Only witness testifying in favour of silver & gold is the GOLD/SILVER RATIO, which appears to have completed a diamond reversal.

Y'all hear that giant vacuum cleaner? That's stock markets sucking up all the investment money & interest in the world.

A couple of days iced in is a treat. A week iced in threatens to deplete my firewood stores & my patience. It started sleeting and freezing again last night, but melted off early today. Shucks, I might as well live in Michigan. I am so thankful for global warming: without it, we'd be froze clean solid.

The bogus tug of war between Greece and the EU continues, but everybody assumes that after talking things to death, some deal will be struck that takes the euro out of harm's way. Jes' seems like nothin' atall goes bad in this perfect world no more, not since our wonderful rulers seized control of the world economy. All they have to do is crank up the computers & issue another trillion euros or dollars or zlotys & smiles break out all 'round.

Hey, wait a minute --- what's that I just tripped over? Barbed wire? What's that for?

It's been since late 2007 that the Dow Jones STOXX European 600 index has closed at 385.08, today's close. I swan, it don't get no better than this. But look a little closer and suspicions begin to sprout like toadstools. STOXX has traded up into a scary rising wedge. It's jes' astounding what QE can do. Chart's on the right:

On the New York side of the Atlantic where the destinies of nations Our Rulers don't like very much are decided, stocks closed the day with mixed results. After Friday's new high, the Dow slipped 23.6 (0.13%) to 18,116.84. S&P500 scraped off 0.64 (0.03%) to 2,109.66. Other indices rose slightly.

With all the free money the carry trade can carry, stocks are bound to move higher. Dow would have to close below 17,850, then 17,750 to gainsay that expectation.

It appears the Dow in Gold and Dow in Silver will travel all the way to the top Gator Jaw before they turn around. Dow in Gold edged up(15.09 troy ounces) 0.08% to G$311.94 (15.09 oz). Dow in silver looks the same as gold. It did drop 0.25% today to S$1,441.11 silver dollars (1,114.61 troy oz).

US dollar index was blowing and going out of the weekend, & hit a 95.48 high at 6:00 a.m. New York time. Caught a stomach virus about that time and commenced regurgitating all those gains, plumb down to nearly where it started, 94.45. Just tucked tail and slunk off the rest of the day, ending up 25 basis points (0.26%) at 94.68.

Since January's high US dollar index has built a long, narrow even-sided triangle. It should be ready for a correction, but won't break. Any close below 93.40 (last low) would send it much lower. Any close above 95.23 would send it skittering higher.

Bruited settlement of the Greek crisis brought the euro no joy today. Quite the contrary: it closed down 0.39% at $1.1335, below its 20 DMA at $1.1357. Nobody wants euros?

Yen is trading like an EKG on a corpse -- straight line. Waxed 0.14% greater today with a close at 84.16 and a tiny range. No interest.

No commentary tomorrow because I will be finishing my monthly paid subscription Moneychanger. Wednesday I have to travel with my son to Kentucky to pick up two sows, yes, sows, Hereford sows. I hope I'll get back in time to send y'all a commentary, but may not.

Aurum et argentum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 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.