Thursday, March 26, 2015

The Gold Price Touched it's 50 Day Moving Average Closing Up $7.80 at $1,204.80

26-Mar-15PriceChange% Change
Gold Price, $/oz1,204.807.800.65%
Silver Price, $/oz17.120.140.84%
Gold/Silver Ratio70.366-0.129-0.18%
Silver/Gold Ratio0.01420.00000.18%
Platinum Price1,152.207.500.66%
Palladium Price770.407.951.04%
S&P 5002,056.15-4.90-0.24%
Dow in GOLD $s303.32-2.67-0.87%
Dow in GOLD oz14.67-0.13-0.87%
Dow in SILVER oz1,032.49-11.01-1.05%
US Dollar Index97.580.380.39%

3 Day Gold Price Chart
3 Day Silver Price Chart
Y'all are gonna love this!

The GOLD PRICE finally crossed the magic $1,200 line today. Rose $7.80 (0.65%) to close Comex at $1,204.80. It rose as high as $1,219.50 & touched its 50 DMA, but fell back in the end. Today was a long stretch on the chart. At some point here we'll see a little breather, since the GOLD PRICE has moved up 7 days running. This was the first hurdle I wanted to see conquered. And volume is rising.

The SILVER PRICE rose 14.2 cents (0.84%) to $17.122, above the magic $17 mark. High today hit $17.41. Silver has solidly built on its breakout & how has climbed above its 20 & 50 DMA's and is reaching for that 200 at $17.86. Maybe tomorrow.

You've had a breakout buying signal, now confirmed. Buy.

According to a Washington Post report on 17 March, the Pentagon can't account for more than $500 million in US military aid given to Yemen, now overrun by Iranian backed rebels. Missing are 1.25 million rounds of ammo, 200 Glock 9mm pistols, 200 M4 rifles, 300 sets of night goggles, 250 suits of body armor, 160 Humvees (that's not a mistake), 4 Huey II Helicopters, 4 hand launched Raven drones, and a couple of transport and surveillance aircraft. Most hilarious of all was this straight-faced comment from some official: "Even in the best-case scenario in an unstable country, we never have 100% accountability."

Somebody ought to tell the yankee government, $500 million here, $500 million there, pretty soon you're talking about REAL money.

Euro, ever ready for an excuse to drop, fell 0.81% today to $1.0883. Still broken out above the 20 DMA and downtrend line, but hugging it scared goat stranded on a high cliff. Yen jumped up 0.25% to 83.90 & almost above its 50 DMA.

West Texas Intermediate Crude leapt 5.02% to $51.43/barrel today & draweth nigh the point of decision. Just above it faces both the downtrend line of its ghastly fall since June plus the upper boundary of the range it has occupied since 2015 began, 54.24 - 42.50. If oil breaks out upside along with copper all those Deflation Doomsayers will begin openly looking like the suckers they have been secretly all along. Simply not possible to have deflation when all money is borrowed into existence. Money supply MUST grow, or die. Money supply cannot deflate under those circumstances, although bubbles the bloating money supply blows up in industries & commodities may "deflate," but that is not monetary "deflation." These folks can't think any straighter than a central banker.

Complicating matters further, the yield on the US Treasury 10 year note is rising, above its 50 DMA today, up 4.53% to 2.007%. Last thing the Fed wants is the bond market challenging their hold on interest rates.

Stocks dropped the fourth day running, drawing closer to their 200 day moving average. After a ragged start that took the Dow to 17,579, it rallied later in the day to end down only -- only -- 40.31 or 0.26% at 17,678.23. S&P lost 4.9 or 0.15% to 2,056.15. Y'all tell me now again, cause I forget. What do you call a series of lower highs and lower lows? That's right, that's right, a DOWNtrend!

Lo & behold, the downtrend continued in the Dow in Silver today. It fell another 1.3% to S$1,333.53 silver dollars (1,031.40 troy ounces). Watching that 200 DMA at S$1,268.61 (981.19 oz).

Dow in Gold has fallen near enough its 50 DMA to smell it strongly. Lost 1.07% to close at G$303.26 gold dollars (14.67 oz) & the 50 DMA awaiteth at G$302.64 (14.64 oz). 200 DMA stands at G$289.61 (14.01 oz).

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.