|Gold Price, $/oz||1,149.00||2.20||0.19%|
|Silver Price, $/oz||16.09||0.11||0.68%|
|Dow in GOLD $s||304.27||1.62||0.53%|
|Dow in GOLD oz||14.72||0.08||0.53%|
|Dow in SILVER oz||1,051.24||0.47||0.04%|
|US Dollar Index||95.58||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|
Clearly silver and GOLD PRICES are slowing here, and the price of gold is laboring to burst through $1,150. Remember yesterday the price of gold closed above its downtrend line from January? It did today, too, although 'twas lower at day's end. Either the gold price must pierce $1,150 or fall back for rest and another try.
SILVER closed today above its 200 day moving average for the first time since May. Last high occurred back then at $17.78. Silver's slowing leaves the thought that it is about to pause, but the strength of this rally whispers it won't pause for long.
Let me describe for you the painful descent of an old bull after a market has topped, and y'all will have a peek into why it's so hard separate your judgment from your position.
The market suffers a top, then a big crash (stocks in May and August). Although the top screams TOP! off the page, you find eight or ten reasons to cast doubt on the fact that that really is a rounding top, and that plunging collapse really was a breakdown.
The market recovers a little, bounces back as it always does. Your heart leaps. You use that little pitty-pat dead cat bounce to wave in the face of that rounding top and plunge like a magic charm to scare them away. Market rises one more day -- your hopes are steadied, re-assured. You knew it would come back, you only had to wait.
Then you turn on the monitor the next day and it's down 4% on the open. You grab your wastebasket and puke, but still your hope prevents your selling out the position. You puke again, and wonder what you'll tell your wife.
Now this same grim, ulcerating torture follows the market all the way down, eats through all your profits, past where you bought in, now racks up real losses, but now your whole being is identified with the certainty that one day it will come back. You keep riding all the way down until the day that it bottoms, and that's the day you sell out and throw in the towel.
Don't ask me how I learned this, but it's what lies in the future for stock investors today.
Stocks rose again today, fighting with the 50 day moving averages, trying to escape that tanglefoot. Dow added 122.10 (0.73%), S&P500 gained 15.91 (0.8%) to 1,995.83. Don't bother me with counter arguments unless both of them pass by the May highs headed higher, because stocks have topped.
US dollar index barely followed stocks higher today, up 7 basis points from this time yesterday to 95.58. Nothing solid or impressive in today's chart. Remains below the 200 day moving average. Momentum is down, gravity is operational, gravity will do its work.
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.