|Gold Price, $/oz||1,185.30||6.50||0.55%|
|Silver Price, $/oz||16.08||0.26||1.63%|
|Dow in GOLD $s||310.28||-3.60||-1.15%|
|Dow in GOLD oz||15.01||-0.17||-1.15%|
|Dow in SILVER oz||1,106.69||-24.86||-2.20%|
|US Dollar Index||95.06||0.07||0.07%|
|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 50 and 20 DMAs are skating together at $1,194.75 and $1,190.28. The gold price rose up and touched the 50 today, but couldn't close that high. A close above that 50 DMA would be your first sign a rally is building.
The SILVER PRICE did not show off like the price of gold today, but it closed above $16.00 and added 25.8 cents. The 50 DMA waits above at $16.46, the 200 (not 20 but 200) at $16.79. If silver could jump over that 200 DMA, it would attract more attention -- and buyers. Momentum indicators are rolling up or have turned up already.
I reckon that when folks start thinking about Greece and how rickety their savings and capital are in banks and retirement funds and pension funds, all liable to be raided when banks and governments get into trouble, that silver and gold start looking a lot shinier and more attractive. What's the only asset without counterparty risk? Precious metals. What's the only asset whose value doesn't depend on some central bank's say-so? Precious metals. What's the only financial asset that isn't locked up in a bank or computer somewhere? Silver and gold in your own hot little hands.
Now, today's market:
Premium on US 90% silver coin jumped 20 cents an ounce today, a nickel an ounce on Friday. Now stands at $1.75 an ounce over melt -- at wholesale. That premium is often quite sensitive to coming moves in silver, and begins to erode before a drop or build before a rally. Can't take that to the bank, but it's a signal on the wind.
Greece, Greece, Greece! Poor Greece is getting blamed for everything, but y'all know that Greece is only a symptom of the hideous, vile marriage of central banking and state deficit spending that IS the modern financial system. Negotiations over Greece making its next payment have broken down. 16 June Greece has a $660 million payment due, and on 19 June another $330 million. In July and August it must redeem almost $7.4 billion in bonds held by the European Central Bank.
But if Greece defaults, the banks who own its bonds will lose, and that is the sole unforgivable sin in the Realm Of Central Banking. Besides, it might give Ireland, Spain, and Italy ideas.
Poor old Greece got blamed for stock weakness today, too, which might lead to questions about the ability of financial journalists to connect effect back to cause. Stock markets are in plenty of trouble on their own without Greece, thanks to 7 years of central bank money creation which has blown up a stock bubble. But Greece gets the blame, mushrooms!
Dow lost 107.67 (0.6%) to close at 17,791.17. That is a new low for the move (17,698 intraday) and below the 50 and 20 DMAs, and only about 160 points above the 200 day moving average.
What difference does that make? I remind y'all that in a rising market, mathematically that market will stay above its 200 DMA most of the time. A close below it signals extreme weakness.
S&P500 lost 9.68 (0.46%) to end the day at 2,084.43. 200 DMA stands beneath at 2,048.24.
Dow in Gold and Dow in Silver turned sharply down. Dow in Silver lost 1.58% to close at S$1,430.25 silver dollars (1,106.21 troy ounces). Dow in Gold dropped 1.04% and ended at G$310.08 gold dollars (15.00 troy ounce).
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.