|Silver Price, cents/oz.||1,538.20||1,630.90||92.70||6.0|
|Gold Price, dollars/oz.||1,242.50||1,233.10||-9.40||-0.8|
|Dow in Gold Dollars (DIG$)||292.43||300.04||7.60||2.6|
|Dow in gold ounces||14.15||14.51||0.37||2.6|
|Dow in Silver ounces||1,142.70||1,097.40||-45.30||-4.0|
|US dollar index||94.22||94.69||0.47||0.5|
This was the week that silver and gold prices proved their uptrend. Listen to my words.
Meanwhile, stocks have stalled, preparing to falling from the air like a soaring eagle without wings. US dollar index tried to break out of a falling wedge upside this week, but spoke out of the other side of its scrofulous mouth today.
Here's the US dollar index chart, http://schrts.co/QHFePt
Today's turndown doesn't settle anything. Dollar index reached the 20 DMA & today turned back. Normal up and down/back and forth of markets. It would have to close below 93.62 (last low) to negate this week's upside breakout.
Bear in mind that it seems that silver and gold are not now paying much mind to the dollar, & are on a tear of their own, never mind the dollar.
Yen closed up 0.19% at $1.1286. If you expect nothing out of the euro, you won't be disappointed. Yen rose 0.63% today to 92, but uptrend is fractured.
Stocks have been eking out gains, only to move sideways and at last reach a marginal new high. Today they dwindled and fainted all day. Dow misplaced 28.97 (0.16%) to wind up at 17,897.46. S&P500 lost 0.1% (2.05 points) to 2,080.73. Very shortly the next sudden, savage, & ferocious slide will begin.
Inflation markets: West Texas Intermediate Crude has stayed above its 200 DMA for five days, which powerfully argues the uptrend from the January & February double bottoms were THE bottom. Copper hasn't climbed over that 200 dma fence, but still appears to have bottomed in January. CRB commodity index is also trending up. A bit early to pronounce it dead, but there doesn't appear to be much more heartbeat in the commodity bear market. Translation: commodities have probably ended their 8 year drop and headed back up, sensing inflation coming.
The silver price today rose 0.9% or 14¢ to 1630.9¢. Gold recovered $8.10 (0.7%) to $1,233.10.
Both metals had to correct a little to PROVE the mettle and strength of their uptrends. Both had to close higher today. Both did. Both have entered an uptrend that should carry into June.
Clearest picture of silver's sudden awakening, like Merlin out of his coma, shows in the gold/ silver ratio chart, http://schrts.co/kh9gOy
First it broke and gapped down at the intertwined 50 & 20 DMAs, punching through the bottom channel line. Then it kept plunging through the 200 DMA. Closed today at its low for the move so far, 75.609. This is precisely what a gold and silver rally need, a falling ratio.
Look at gold's chart, http://schrts.co/SAegTM
Gold came back to the 50 day moving average & uptrend line for one last kiss good-bye yesterday. Next week it ought to take off toward the clouds. Outlook remains higher unless it closes below $1,220.
Silver has been sassy and stubborn, up 6% this week. Today's close was not the highest Comex close so far (1630.9¢ today against 1632.3¢ on 13 April), but silver did close at its highest for the move on the End of day chart, here http://schrts.co/vJfxKN
Silver is at the upper boundary line of this consolidation area. Once it escapes that area, it will run for 1778¢, maybe 1850¢.
All these -- gold, silver, the ratio, platinum, palladium, the surging gold stock indices -- testify that the gold and silver price lows in December were THE bottom of the post 2011 correction. NOW is the time to buy silver and gold.
Y'all hang on: rest of 2016 will be a wild ride on a broken roller coaster.
Y'all enjoy your weekend.
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. 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.