|Gold Price, $/oz||1,183.70||-17.80||-1.48%|
|Silver Price, $/oz||16.14||0.03||0.20%|
|Dow in GOLD $s||316.44||6.47||2.09%|
|Dow in GOLD oz||15.31||0.31||2.09%|
|Dow in SILVER oz||1,122.87||4.15||0.37%|
|US Dollar Index||94.56||0.29||0.31%|
|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|
The GOLD PRICE last Thursday hit its 2-standard deviation Bollinger Band, shouting a loud signal it was turning around. Today it plunged beneath its 20 and 50 DMAs plumb back to its little June uptrend line. Okay, so it went up and nearly touched its 200 DMA, then reeled back at the thought of that impudence. Standard for any market, but it's not broken. A close tomorrow below $1,180 would put it in danger of falling, but a close below $1,174 would ensure it.
Since this June rise began -- I can't call it a rally, silver and gold prices have persistently trended up -- silver has lagged the gold price. Thursday it hit its 50 DMA and fainted. Why today would silver best gold? I haven't a clue. Might be a one day fluke, might be the Nice Government Men concentrating on the price of gold and overlooking silver. Regardless, silver's MACD is within a gnat's eyebrow of turning up, the ROC and Full Stochastic and RSI already have turned up -- nothing nuclear, but up. Then in the late aftermarket silver is trading up at $16.22.
I could scratch my head till I was bald and couldn't tell y'all why this happened. I will, however, offer the opinion that it speaks good things to come for silver and gold prices.
Yes, I am a pre-electronic relic, and I still cling to the belief that wisdom lives in simple proverbs, such as "Watch what they do, not what they say." Cutting through all the persiflage, camouflage, and hogwash, people will ACT on what they TRULY believe, never mind what they say. They talk to confuse and distract you from what they are doing. In the case of the Fed, most people miss their shell game because most people speak to convey information. The Fed speaks only to convey DISinformation.
But watch what they do, not what they say. Mama Janet SEZ the economy is improving and things are getting better, but just like the Wizard of Oz -- which itself was an allegory about the gold standard controversy -- "Pay no attention to the man behind the curtain!" They don't want you to see that the great wizardess and wizards are in fact wizened, feckless academic charlatans pushing smoke bellows, pulling thunder-ropes, and throwing lightning switches, all to convince you that nothing truly is something. If the economy were as strong as they claim, why wouldn't they turn interest rates loose? The question answers itself. Watch what they do.
Could a commonwealth could sink lower than to be ruled by such ridiculous, despicable people and institutions?
Meanwhile, back on the Euro-stage all the actors played out their parts: Greece the recalcitrant but sincere debtor, Germany the dour, righteous, and solvent householder, the IMF clueless bureaucrats, the ECB clueless central banking bureaucrats, and the rest of the players simply clueless. Not even folks whose taste riseth no higher than soap operas could buy this stuff.
As the excuse for the gold price fall and silver's rise, the tame financial media adjusted its pretty dog-collar and opined the cause was a brightening outlook for a Greek solution. Let me say with the least scatological vulgarity possible, Hogwash! I don't believe it. How will a solution in Greece help American stocks? Most American investors couldn't find Greece on a map if it were the only colored country, and a greater proportion care not a dried Kalamata olive for its financial outlook. Tell that one to any hicks who might believe it.
The chronically suspicious, like me, long taught to be suspicious, might look for the Invisible Hand of Government behind this price action, Nice Government Men from the European and US central banks whacking the gold price's head lest it runaway and spook a financial panic. Let us pretend, citizens, that all's well in the world.
On the other hand, a radio story about Greeks withdrawing all the cash out of their accounts on Fridays and re-depositing it on Mondays shows the Greeks' real genius at identifying Hogwash. They know governments always throw surprise parties, like grabbing your bank deposits, over the weekend, so the Greeks choose not to play.
Maybe some of y'all 'Murricuns ought to follow suit, get two or three months' green paper money cash needs in a safe in your house, take delivery of all your gold and silver, and generally take yourselves OUT of the grip of the financial system. Most 'Murricuns, unhappily, believe whatever lie their gummint is peddling today.
But what do I know? I'm jes' a nat'ral born durned fool from Tennessee, too blamed stupid to distinguishate betwixt a lie and Adam's off ox. I ain't near as clever as them gummint men.
STOCKS today rose, making back about what they lost on Friday, much like your mudbound car spinning its wheels and throwing mud up on your suit and shiny shoes.
Dow rose 103.83 (0.58%) to 18,119.78 after falling 99.89 on Friday. S&P500 added 12.8 (0.61%) to 2,122.85. Even my jaundiced eye can see that both stand above their 20 and 50 day moving averages, staging a little rally that may even post new all-time high which will be a meaningless as fins on a 1957 Dodge (can't swim and don't float). Still, they are rising, and the myth goeth forth.
To set that against the proper backdrop, the Dow in gold rose again today to touch its upper gator jaw at G$316.28 (15.3 oz), the last in a series of impotent jigs and jags that stretch back to March, illustrating only stocks powerlessness to make value headway against metals.
Dow in Silver flatlined today, closing S$1,451.34 silver dollars (1,122.52 oz). Like the Dow in gold, the DiS is rolling over slowly.
US dollar index added 29 basis points (0.31%) and closed 94.56. Lo, life is replete with ambiguities! You ask your wife how she likes your haircut and she says, "Fine," but you don't know whether that means "fine" or "Why have you been hanging out with the Sioux, haven't you heard of Custer?" So 'tis with the US dollar index. Last week it plunged to a new intraday low for the move at 93.30, but now is trying to crack the essential support line above about 94.50. Presently the trend is down, but a close above 95.10 would change that.
But wait? Why would the US dollar draw a safe-haven bid (from the Greek debacle) when gold, the ultimate hedge, supposedly lost its safe-haven bid? Investors also dumped US treasuries, as yields rose. It's enough confusion for a corkball game for 4 year olds.
Euro lost 0.25% to $1.1336 and yen lost 0,55% to 81.06. Below 82.30 the yen has no future, and below $1.1500 the euro convinces no one.
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.