|Gold Price, $/oz.||1,084.50||1,076.90||-7.60||-0.7|
|Silver Price, $/oz.||14.505||13.859||0.646||-4.5|
|Dow in Gold $ (DIG$)||340.20||331.42||-8.78||-2.6|
|Dow in gold ounces||16.46||16.03||-0.42||-2.6|
|Dow in Silver ounces||1,230.45||1,245.78||15.33||1.2|
|US dollar index||98.35||97.55||-0.80||-0.8|
|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|
I don't like silver's chart, mostly today. It posted a new low for the move at 1375c, and a new low close at 1385.9c. Can't build upward steam.
|Dow in Gold|
|US Dollar Index|
Not much joy in Wall Street this week. They's chickens flying all up and down the street, messin' up the sidewalks and sidewalkers and looking for a place to roost. Stocks are walking toward August's open manhole and junk bonds are flying apart. What happened to Santa Claus and where is his rally? Gold and silver have been listless, and silver is turning puny. Scurvy US dollar index resumed it skid, and the white metals are diving.
Just remember, a nation without a central bank is like a howler monkey without a cell phone. Or a hog without a waistcoat.
Junk bonds are tanking. When investors are scared, they flee high risk investments like that, looking for safety. HYG junk bond index has avalanched to a new two year low. Yes, that is serious. Pretty fair article on Marketwatch here, http://on.mktw.net/1HZjlef "Why the junk bond selloff is getting very scary." Note the chart comparing junk bond performance with S&P500 performance last 17 years. View the HYG chart on the right but grab your wastebasket first. Might make you puke. (Thanks, R, for forwarding me that article!)
|Ten Year Treasury Yield|
Sellers bashed stocks this week. Dow lost 3.3%, S&P500 3.8%. Today was the worst of a rotten week. S&P500 dove 39.86 (1.94%) to 2,012.37. Dow got up on the diving board and plunged 309.54 (1.76%), landing on its face at 17,265.21. Owch.
Where does that leave them? Here are charts on the right.
Mark, gentle readers, that both indices are nearing the horizontal line through which indices fell in August so ignominiously, as an incautious man reading a newspaper falls down an open manhole. Downside momentum is building with volatility. Both indices have fallen way below their 200 DMAs and other moving averages, so that momentum is sucking them down into a maelstrom. Bad juju, bwana. Hear drums beating in jungle. Bad juju, as the bearers might have said in a 1930s Tarzan movie.
Ponder now: how likely is the Fed to raise interest rates in the face of plunging stocks? Likely, not likely, or likely as the survival of a large roach facing 200 hungry hens?
Dow in gold fell 2.01% today to 16.08 troy ounces. Clearly double topped 27 Nov and 2 Dec and has since cascaded through its 20 DMA and today through the uptrend line from August 2013. No gift of clairvoyance needed to foresee much lower prices here.
Even after silver's shabby performance this week and today particularly, the Dow in Silver dropped 0.28% to 1,243 troy ounces. Like its sister indicator, it, too, hath fallen below its 20 DMA and peaked back on 2 December. Be patient. It appears stocks have peaked against metals.
|Gold:Bank Stock Index|
With all this panic in the air, the Gold:Bank Stock Index spread is smokin', taking off. Remember, this spread shows waxing confidence in the financial system (the big banks) versus gold when it's falling, and waning confidence in finance and waxing confidence in gold when it rises. Looky, looky here:
Before I forget, I have to travel next week and will be out of town Monday through Thursday, so I won't be sending any commentaries on those days. God willing, I'll see y'all again next Friday.
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.