|Gold Price, $/oz||1,241.10||10.80||0.88%|
|Silver Price, $/oz||15.00||0.27||1.83%|
|Dow in GOLD $s||281.48||-1.90||-0.67%|
|Dow in GOLD oz||13.62||-0.09||-0.67%|
|Dow in SILVER oz||1,126.40||-18.32||-1.60%|
|US Dollar Index||98.19||-0.17||-0.17%|
|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|
Bear in mind I am only looking for a small correction. I still maintain that silver and gold prices both bottomed and completed the post-2011 correction in December.
Here's a 30-year chart of the gold/silver ratio, so y'all can get a good idea of what I mean by the range.
This is an End of Day chart so it exaggerates my numbers, which are Comex closes, but the picture is similar. Note the top of the range is about 84.5, the lower end about 43. Shows a 2011 spike down to 29.08, but actually that was 32. Also shows target for next silver to gold swap about 32. Mark also how overbought the ratio is, as measured by the RSI indicator.
Our gold/silver swapping strategy swaps OUT of gold and into silver near the range's top, and back OUT of silver and into gold at the range's bottom.
On to today's markets:
Friends, it just don't work like this for long. EVERYBODY cannot win, and last few days gold and silver have been flexing their muscles, stocks a-rising, and the pestiferous US dollar levitating. 'Sgonna change.
Yesterday, Dow rise 348.58 (2.11%) higher. Today it was underwater most of the day, until 3:30, then closed up 34.24 (0.2%). Mmmm. S&P 500 added 46.12 (2.4%) yesterday and another 8.10 (0.4%) today to 1,986.45. Stocks have entered that territory where the going becomes miry and swampy, the resistance more determined. Bottom could fall out tomorrow or two weeks from now, but fall out it will.
Background for all this is a correction of stocks' brutal fall from 2016's opening and silver and gold's rally from same. Be patient, let it unroll. 'Twill soon resume major trend.
US dollar index waxes awfully wilty and melty when it nears its 50 DMA. Been over it for three days, but today backed plumb back, 17 basis points or 0.18%, to end at 98.19, almost dead on the 50 DMA. If it intends to rally further, through the May 2015 high at 100.04, it's sure keeping its cards close to its breast. No insistent strength as you'd expect from a bull, just fits and starts and faintin' spells.
Aurum et argentum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
© 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.