|Gold Price, $/oz||1,050.80||-27.20||-2.52%|
|Silver Price, $/oz||13.68||-0.54||-3.76%|
|Dow in GOLD $s||344.19||3.83||1.12%|
|Dow in GOLD oz||16.65||0.19||1.12%|
|Dow in SILVER oz||1,278.66||30.30||2.43%|
|US Dollar Index||99.32||1.44||1.47%|
|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|
On the daily chart the two metals held hands. About 10:00 the PRICE OF GOLD fell through a trap door at 1,065, and by noon had reached $1,048.35. Rest of the day it flattened out, stunned by the fall, I reckon, remaining above $1,050 but progressing not at all.
$1,044.50 was the February 2010 reaction low. From that platform gold reached $1,900 in 18 months, never looking back. That came after the March 2008 high at $1,034 and the 2008 intraday low at $681. How much support $1,044.50 will offer today is anybody's guess.
More than that 5 year old support, I would expect both silver and gold prices to turn up from this bottom wedge boundary. But then, I don't tell 'em what to do, they tell me.
Dear friends, the Fed is lost. They have gotten this far on bluster and braggadocio that would do PT Barnum proud, but they are by no means as clever as PT. Stocks are set up to crash, and will in 2016. Bonds are unravelling from the bottom up.
Which would you rather own, gold at $1,050 and silver at $13.65 or the Dow at 17,500? I'm just a nat'ral born durn fool from Tennessee that don't know live stock from a share of stock, but I can answer that question pretty quick. When it comes to a question of trusting the Fed and the financial system or silver and gold, I got no question.
Yesterday the Fed raised its discount rate 0.25%, the first raise in nine years. That brings their range to 0.25% to 0.5%. The Fed also committed itself to raising rates to 1% over the next year.
Now ponder this mystery with me: the Fed is tightening money supply as the economy is slowing. Make sense to you? Yep, if you want to create a depression. When stocks really tank and scare the ugly out of the Fed (no, not possible), you will see QE4, probably in 2016.
Stocks first reaction was a big rise yesterday, Dow up 1.28% and S&P500 up 1.45%. They thought better of that today. Dow plummeted 1.43% or 253.25 to 17,495.84. S&P dove 1.50% or 31.18 to 2,041.89.
Technically they simply hit the upside-down bowl's bottom above, failed to push through, and fell back today below the 200 DMA (17,551 and 2062). Now they've established a series of three lower highs and three lower lows, which defines a downtrend. One day soon, maybe next month, they'll fall off the cliff.
Dow in gold rose today above its 20 DMA (16.66 troy oz) and closed at 16.66 tr. Oz. That remains well below the November 16.85 tr. Oz. high.
Dow in silver, thanks to silver's recent weakness, hit a new high for the move today at 1,278.47, against the last high at 1,274.08 troy ounce. Trying to move higher.
US Dollar Index, which averages the value of the scrofulous, scurvy Fern (Federal Reserve note) against other currencies, also fell yesterday, down 0.34% to 97.88. As a "sell the news" move, that made sense. However, today the dollar index shot up 144 basis points (1.47%) to 99.32, punching through the short term downtrend line and reversing direction to UP. Euro sank 0.77% today to $1.0825 while the Yen lost 0.36% to 81.53.
|West Texas Intermediate Crude|
Merely as an interesting aside, West Texas Intermediate Crude has not collapsed, as so many expect. It did make a new low for the post-June decline, but that was earlier in the week and not by much. Yesterday it fell, today it rose. Nor has copper fallen out of bed.
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.