Silver and Gold Prices are Packing Their Bags for a Rally, 2016 is the Year of Their Comeback

25-Jan-16	Price	Change	% Change
Gold Price, $/oz	1,106.20	9.00	0.82%
Silver Price, $/oz	14.24	0.20	1.40%
Gold/Silver Ratio	77.683	-0.449	-0.57%
Silver/Gold Ratio	0.0129	0.0001	0.58%
Platinum Price	859.70	30.00	3.62%
Palladium Price	489.70	-8.70	-1.75%
S&P 500	1,877.08	-29.82	-1.56%
Dow	15,885.22	-208.29	-1.29%
Dow in GOLD $s	296.85	-6.36	-2.10%
Dow in GOLD oz	14.36	-0.31	-2.10%
Dow in SILVER oz	1,115.54	-30.48	-2.66%
US Dollar Index	99.31	-0.28	-0.28%

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 Comex the GOLD PRICE rose $9.00 (0.8%) to $1,106.20 while the SILVER PRICE jumped 19.7¢ (1.4%) to $14.24.

Like prisoners of war digging a tunnel, silver keeps tapping on the ceiling, trying to break through. Hit that $14.36 high again today, but fell back to a $14.24 close. At least today it bulled its way past the $14.20 that blocked it last week. One more strong push will take it through $14.40 and off to the races.

After last week's little correction, it appears that the GOLD PRICE has begun climbing again. If so, 'twill confirm by closing over $1,113 tomorrow.

Silver and gold prices are packing their bags for a rally. 2016 is the year of their comeback.

A Zero Hedge article at http://bit.ly/1RHCgNZ reports that Norway's biggest bank has now joined the chorus demanding cash currency be abolished. Don't miss what this means: a ban on cash means government and central banking have COMPLETE CONTROL of your wealth. If they want to bail-in your assets to bail out the bank, you are nailed. If they want to force you to spend with negative interest rates on your balance, you're stuck. If they want to cut you off as a non-person, they simply "close your account." Besides, no cash, no bank runs possible. Gotcha!

Remember there's very little cash in the system anyway, about $1,000 per capita in the US. Legally it would be very difficult -- absent the Tyrant's Excuse, an "emergency" -- to ban cash in the US, but that doesn't mean the Fed and banks and yankee government wouldn't try.

Better than paper FERNs (Federal Reserve notes) are gold and silver. Not in a bank, but in your own safekeeping, beyond bail-ins, beyond forced spending, beyond a switch that makes you a non-person.

I say no more. As my old first sergeant used to say, "A word to the wise is suffice."

US Dollar

Well, shut ma mouf'! Stocks did not rally. Instead, they sank like an ax head in a stock tank. Backing off a tad wouldn't have been so bad, but they backed clean over the cliff. Dow dropped 208.29 (1.29%), below 16,000, to 15,885.22. S&P500 dropped heavier, down 29.82 91.56%) to 1,877.08. Oh, I suppose they will still rally up toward 16,600, but stocks are even sicker than I thought, gaining 210.83 on Friday and losing 208.29 on Monday. Making two points every two days, they'll gain ten points by next Monday.

Euro

USE any stock rally to shuck stocks and run for cover.

Yen

If the US dollar were a hound, I'd say somebody's been feeding him pizened meat. Reached as high as 99.66 but had lost 28 basis points (0.28%) by the close. In other words, it puked back over half Friday's 52 bps gain. This continued up and down punctuated by severe slides reflects weakness. Dollar's strength has been sapped. Still, however, not proven that it will give up its rally ambitions. Needs first to close below 98.85, which would place it below both the 20 and 50 day moving averages.

Euro is vibrating in the nose cone of an even-sided triangle. Rose 0.5% today to $1.0851, but this proves nothing.

Yen is giving back some gains from its China-terror rally. Knocking on the 20 DMA (84.35) now. Closed today at 84.51, up 0.39%.

Oil (WTIC) gave back today all and more than it gained on Friday. Down 5.92% to $30.34/bbl.

Aurum et argentum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2016, 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.