|Gold Price, $/oz||1,159.00||-4.30||-0.37%|
|Silver Price, $/oz||15.35||0.20||1.31%|
|Dow in GOLD $s||313.00||1.75||0.56%|
|Dow in GOLD oz||15.14||0.08||0.56%|
|Dow in SILVER oz||1,143.61||-12.76||-1.10%|
|US Dollar Index||96.79||0.32||0.33%|
|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|
Last three days silver has left a pretty tracery of spike down and two strong up days, but it still needs to CLOSE for two days above $15.50. Shortening physical supply (rising silver prices) whispers that buying pressure keeps pushing up the price.
Like silver, the GOLD PRICE shows a plunge down followed by two up days. However, credibility does not return until it crosses $1,170 and stays there two days.
One last spike down would be a great place to buy.
In the end, price answers every question in markets. Regardless how supply moves or who is buying or how much, if it doesn't show in the price, it means nothing. Well I remember 2008, when silver dropped to $8.80 and gold to $705, but you couldn't get ANY physical without an eight week delay. The physical silver market went to a 50% premium over the paper price. In other words, the paper price on Comex might have been $8.80, but if you wanted physical in your hand, you paid $13.20 and waited.
Precisely the same situation is creeping into silver now. On 30 June US 90% silver coin cost 220c/ounce over spot silver, and silver American Eagles 230c over. Today US 90% costs 285c over and silver Eagles 270c and the Mint has suspended deliveries. Once again as in 2008, physical silver is tugging against the paper price.
One thing scarier than a market cascading is a market that rallies and then lets go the gains. Dow today rallied nearly 250 points, but lost it all but 33.2 points to end up on 0.19% at 17,548.62. S&P500 played out the same role, holding on to only 4.63 points (0.23%) at 2,051.31. BOTH remain below their 200 DMA. Rollover downward is confirmed.
US dollar index rose 32 basis points (0.33%) to 96.79. Dollar index's reluctance to take off after a technical breakdown could be explained many ways, but Occam's Razor, which shaves mighty close, says the most obvious cause is the most likely, so point to the Nice Government Men. None of the central banks want a panic into the dollar.
I missed the yen yesterday, which hit 83.05, but it fell back 0.55% today to 82.39. It has now broken back up into the trading range it fell out of and is above its 20 and 50 DMAs. That's progress, I reckon.
Inflation markets, which had taken a beating earlier this week, appear perkier. Oil made the first half of a key reversal on Tuesday but failed to turn the key on Wednesday. Today it rose. It's a market to stay away from, likely to tumble more. Copper tumbled horribly on Monday and Tuesday, clean town to $2.38, then yesterday posted the first half of a key reversal and the second half today with a much higher (2.33%) close at $2.55. Mixed signals. Markets don't know whether the world's about to end or business will get better.
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.