Friday, March 27, 2015

The Gold Price Gained $15.00 this Week Closing at $1,199.80

20-Mar-1527-Mar-15Change% Change
Gold Price, $/oz.1,184.801,199.8015.001.3
Silver Price, $/oz.16.86717.0520.1851.1
Gold/Silver Ratio70.24470.3610.1180.2
Silver/gold ratio0.01420.0142-0.0000-0.2
Dow in Gold $ (DIG$)316.28305.17-11.11-3.5
Dow in gold ounces15.3014.76-0.54-3.5
Dow in Silver ounces1,074.741,038.71-36.03-3.4
Dow Industrials18,127.6517,712.06-415.59-2.3
US dollar index98.1497.54-0.60-0.6
Platinum Price1,142.201,143.601.400.1
Palladium Price778.76740.65-38.11-4.9

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
As I suspected, after 7 days' rising silver & GOLD PRICES needed a rest, especially at $17.00 & $1,200 resistance. Today silver gave back 7 cents (0.41%) to close Comex at $17.052. The GOLD PRICE lost $5.00 (0.48%) at $1,199.80.

Obviously yesterday, with its thrusts to $17.41 & $1,219.50 was the top of the first leg up. Next comes a little -- not big -- correction, maybe back to $16.50 & $1,190 before metals launch their next leg. Pause shouldn't last many days.

On a weekly chart the gold price has painted a falling wedge. This week it closed plumb on top of that upper boundary. The SILVER PRICE hit but did not close over the analogous upper boundary on its weekly chart. Both need weekly chart breakouts to confirm daily action.

GOLD/SILVER RATIO today closed little charged at 70.361 ounces of silver to one ounce of gold. The ratio hit the too DMA (now 69.84) and bounced up, and is dancing along the uptrend line from the April 2011 low, the Big One.

Take advantage of the little correction next week - if it gives us a chance -- to buy more silver & gold.

Dow lost a hefty 415.59 or 2.3% this week, S&P500 lost 2.2%. Unless stocks can scrabble back above the March high, the plunge has begun, the end of the long Fed-sponsored stock bull market. Silver & gold advanced steadily, soldiering through heavy resistance -- good progress. US dollar continues to fall, while inflation markets copper & oil strengthen. Platinum ended the weak flat but palladium took a $32.35 fall today.

Glyphosate is the generic name of Round Up, and come spring they spray it all over fields to kill everything living, then come back & plant Roundup resistant GMO corn & soybeans. Monsanto the maker claims it has a short half life, but I don't believe them. More than that, glyphosate washes off that field and into branches, creeks, and streams, so there's a strong likelihood it ends up in your drinking water.

Y'all will get a laugh out of this: a "scientific" lobbyist-apologist for glyphosate in an interview offers to drink a glass of glyphosate. The interview says, we've got some here, I'll pour you a glass. Watch him go backward faster than a jet propelled crawfish:

Stocks took a beating all week, and were taking another one today until about 10:30 when the god-out-of-a-machine (Nice Government Me) or somebody) commenced a-buying and drove 'em up 82 points for a close at 17,712.06, up 33.83 or 0.19%. S&P500 end 4.82 or 0.23% higher at 2,060.97. Both are on the downside of the uptrend line from March 2009.

Once again, as long as stocks do not exceed the March highs, 18,288.63 & 2,117.35, they have topped, as in, "ended the upmove that began in March 2009." Time to start thinking about swapping stocks for gold and silver. Look at what the Dow in Gold & Dow in Silver are saying.

Dow in Gold
Dow in gold fishhooked up today after plunging since 19 March without a single up day. It has sunk from G$322.07 gold dollars (15.58 troy ounces) to G$305.53 (14.78 oz), far below its top gator jaw and 20 DMA (G$314.83 or 15.23 oz) and closing in on the 50 DMA (G$300.77 or 14.65 oz). Take a look for yourself on the right.

Dow in Silver
Dow in silver has fallen harder and faster than the Dow in silver, from S$1,487.45 silver dollars (1150.45 oz) to S$1,349.51 (1043.76 oz) today, right nearly 10%. Unarguable confirmation comes when it drops through the trap door at the 200 DMA, now $1,269.70 (982.03 oz.), 'bout the same spot it will hit the uptrend line from August 2013. Chart on the left.

Waiting for more confirmation, but now it appears stocks have topped against silver & gold. That's why I say it's time to start thinking about swapping stocks for silver & gold, 'specially in those IRAs.

US Dollar index has fallen below its half channel line & can't get up. Needs Life Alert. Fell another 15 basis points (0.15%) to 97.54, below the 20 DMA (97.96). Appears minded to move to the bottom channel line, toward 94. According to a Commerce Department report (as much as you can trust any lying yankee government report) corporate profits dropped in the last quarter for the biggest fall since Q1-2011. Maybe the high dollar is hurting exports after all, which explains why the FOMC had to talk the dollar down.

The euro, which has no more ambition than a hillbilly living on free moonshine, rose 0.11% to $1.0888. Just can't get a rally tuned up and running, although it's on the upside of the downtrend line. Market just doesn't trust it. Yen is clinging to its 50 DMA -- closed up 0.01% at 83.91, which I call motionless.

WTIC backed down 4.18% to $48.87/barrel, but that's all right. It's about to break out to the upside, just needs to beat $54. Copper backed down, too, but remains broken out above the top of a rising triangle.

Y'all enjoy your weekend.

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.