|Gold Price, $/oz||1,088.40||-4.30||-0.38%|
|Silver Price, $/oz||14.69||-0.04||-0.29%|
|Dow in GOLD $s||337.05||1.19||0.36%|
|Dow in GOLD oz||16.30||0.06||0.36%|
|Dow in SILVER oz||1,207.95||3.16||0.26%|
|US Dollar Index||97.69||0.62||0.64%|
|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|
But still, the best possible headline for the gold price appeared today: "Prepare for gold prices to plunge as low as $350." Exactly THAT sort of headline is what you want to see for an upward reversal, because it indicates that optimism for gold is historically low, pessimism historically high. You see headlines like that when all the sellers have sold. And how hard did this prediction hit the price of gold? It dropped $4.30 (0.4%), but not even all that drop could be credited to the headline. Got to learn to think contrary to the mob.
In today's trading the gold price was driven below $1,092 with a huge fall about 3:00 a.m. Eastern time -- right, while most of the world was closed and the market very thin. It tumbled to $1,082.75, climbed back above $1,086, went sideways until 10:00 a.m., then began to rise, steadily, to $1,095 at 1:00 p.m. Rest of the day it settled back beneath $1,090.
Does that wreck my outlook? Partly, and partly not. Gold price left behind a very plain double bottom at $1,082.75. Mayhap I set my boundary a little too high. We'll see tomorrow. Time is working against silver and gold prices. The longer they stay down here, the greater the chance they will fall off again.
Silver, I hasten to point out, did not break. It held on just fine above a $14.62 low.
US dollar index is back on the radar with a breakout today from its downtrend. Gained 62 basis points to 97.69. Unless it can fly above its last high at 98.31, it is only faking a rally.
Euro fell 0.47% to $1.0933, back below its 20 day moving average. That thing couldn't pour a rally out of a boot with directions on the heel.
Yen broke down again today, losing 0.17% to 80.54. This pierces the little uptrend line it was working off the early June low. More downside coming.
Stocks ran slap out of gas today. Dow lost 5.41 (0.03%) to 17,745.98. S&P500 rose 0.06 to 2,108.63. Dow remains below its 200 DMA. S&P500 has climbed back above its 20 and 50 DMAs. Big obstacle comes about 2,120, the downtrend line from the May high. Even moving higher tomorrow won't change my outlook on stocks. A big plunge is coming. Cataract. Waterfall. Put on your rainsuit.
Since I got calls from five (5) people today who misunderstood what I wrote yesterday about swapping US 90% silver coin for bars, I clearly did not write clearly. Please forgive me. Only the US 90% silver coin has a high premium, and therefore can be swapped for 100 ounce bars or one ounce silver rounds for a gain in ounces. Here's what I SHOULD have written:
AN UNUSUAL OPPORTUNITY. The wholesale buy side premium on US 90% silver coin has risen so high that you can swap US 90% silver coin for 100 ounce silver bars (or one ounce silver rounds) and realize an 11% to 12.2% gain in silver ounces. Far as I know this is a "like-kind" exchange so not taxable, but ask your own tax daddy because I don't know sic-'em from come-here about no taxes. Be careful about doing this swap with any other dealer but us. I believe we are the only dealer in the country that charges commission on one side of the swap only, to increase your realized gain. You can also swap 90% silver coin for one ounce silver rounds, for a slightly smaller gain.
Warning: do not swap ALL of your 90% coin. Keep at least some of it because the higher premium may be a permanent structural change and not a transitory one. In other words, US90% may never get cheaper again. Call to inquire, (888) 218-9226.
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.