|Gold Price, $/oz||1,187.90||7.80||0.66%|
|Silver Price, $/oz||16.15||0.05||0.31%|
|Dow in GOLD $s||298.30||1.83||0.62%|
|Dow in GOLD oz||14.43||0.09||0.62%|
|Dow in SILVER oz||1,061.28||10.18||0.97%|
|US Dollar Index||94.43||0.47||0.50%|
|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|
For the second day the GOLD PRICE closed above its 200 day moving average ($1,176.21) and above the downtrend from the October 2012 high. This steady push from $1,165 through resistance looks strong. If they can't beat the gold price back here, it will jump through $1,205 and take off running.
The SILVER PRICE, too, has reached new highs, pierced the 200 DMA ($15.97), and keeps holding on to its gains and slugging higher. Aiming at $17.86.
What keeps on vexing me is the enormous disparity between the paper silver and gold prices and the physical. Probably 50 times as much paper silver is traded as actual. What happens when the price jumps and somebody can't deliver? Price soars, and a lot of people who thought they were safe find out they aren't. Watch out, watch out.
Right on cue today the stock market "miraculously" jumped. Dow added 217 (1.28%) and almost re-couped what it had spent the last two days losing. S&P500 recaptured 29.26, a 1.49% gain. Dow ended at 17,141.75 while the S&P500 closed at 2023.86.
Low was made yesterday and buying came in early in the day, but accomplished nothing until about noon, when stocks began to advance strongly and kept it up the rest of the day.
Today's rise doesn't shake my conclusions. Stocks have rallied back up to their breakdown point, a technical move that happens not frequently but nearly all the time. Stocks should resume their fall from the tenth story, soon.
Today had more Fed presidents out swabbing, loading, and firing the blarney cannon. New York Fedprez Dudley was castigated on a panel for FedHeads making conflicting remarks about raising rates. He had the almighty gall to say "We are all pretty much on the same page." Folks, I'm telling y'all, they are laboring mightily to sell this idea they are still going to raise rates, and in December. When pigs fly. When central bankers grow hearts. When government officials lips move and truth comes out.
Following stocks still, the US dollar index rose, too, 47 basis points or 0.5% to 94.43. That might be the first half of a key reversal, but it didn't break into new low territory by much, so maybe not. To prove that reversal dollar must close higher tomorrow.
In the face of the dollar rattling its empty saber the cowardly euro retreated 0.83% to $1.1380. Not deadly -- it's still rallying but needs to climb over $1.1500.
Yen was tougher, gave up on 0.06% and closed at 84.10.
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.