Tuesday, March 31, 2015

Silver and Gold Prices Lost Momentum With the Gold Price Closing Losing $1.70 at $1,183.10

31-Mar-15PriceChange% Change
Gold Price, $/oz1,183.10-1.70-0.14%
Silver Price, $/oz16.58-0.08-0.46%
Gold/Silver Ratio71.3530.2230.31%
Silver/Gold Ratio0.0140-0.0000-0.31%
Platinum Price1,142.6025.702.30%
Palladium Price735.006.300.86%
S&P 5002,067.89-18.35-0.88%
Dow in GOLD $s310.59-3.05-0.97%
Dow in GOLD oz15.03-0.15-0.97%
Dow in SILVER oz1,072.08-7.13-0.66%
US Dollar Index98.640.360.37%

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
Silver & GOLD PRICES both ran out of downside momentum today. The gold price inched back $1.70 to 1,183.10 while silver scraped off 7.6 cents to $16.581.

The GOLD PRICE 50 dma ($1,216) is stacked above its 20 DMA ($1,176.23). Today at its $1.178.20 low gold nearly bumped into it. That would be a fine place to turn around, but it might take $1,168 to do the trick.

Looking at the SILVER PRICE through the same lens, its 20 DMA stands at $16.23. Coincidentally, that's where support from the shoulder line comes in.

Y'all know that technical analysis assumes that a "trend in force remains in force until invalidated." However, invalidating positively entails waiting (in the case of a downtrend) for a huge rise.

Still and all, give the proverb its proper honor. Silver & gold prices have been downtrending since 2011. They have to prove an upward reversal one step at a time. A good step here would be holding on above $16.20 & $1,160.

If those are violated, we just go back to watching and waiting, but here you see markets' trickiness. If you pass on buying by listening to the proverb, and they turn up here, you missed a bottom. However, buying here entails also the risk that it won't stop at those points.

It's enough to make a man take up the dog-grooming business, something with a solid future.

Somebody left the champagne out all night and all the bubble went away today. As I observed yesterday, it was all hogbreath, & hogbreath just blows away.

Dow lost 200.19 of those 263.65 points it gained yesterday, falling 1.11% to 17,776.12. Volatility eats up buying power like spinning wheels in mud burns gas & eats up tires. S&P500 tumbled 18.35 (0.88%) to 2,067.89

'Cause I'm a durned ol' nat'ral born fool from Tennessee won't nobody listen to me when I point out stocks are showing all the signs of topping, may have already made their final high on 2 March, & are now in an established downtrend. These are facts, but I'd have to be selling stocks on Wall Street and wearing sharkskin suits and pointy toed patent leather shoes to get anybody to believe me. Wearing overalls & herding cows just don't earn no respect, but it does add a whole new dy-menshun to "stock broker."

The corks are a-poppin' in the US dollar index, which has traded above its 20 day moving average. Looks like the dollar gamblers are bidding it up again, in a self-reinforcing cycle of buying and greed. Dollar index gained 36 basis points (0.37%) to 98.64. I reckon this will play out soon, but it might 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.