Friday, May 20, 2016

Gold Price Closed at $1254.20 Down -$19.50 or -1.53%

19-May-16PriceChange% Change
Gold, $/oz1,254.20-19.50-1.53%
Silver, $/oz16.48-0.64-3.74%
Gold/Silver Ratio76.1091.7112.30%
Silver/Gold Ratio0.0131-0.0003-2.25%
S&P 5002,034.86-12.77-0.62%
Dow in GOLD $s286.982.520.89%
Dow in GOLD oz13.880.120.89%
Dow in SILVER oz1,056.5832.833.21%
US Dollar Index95.290.100.11%

It's only 1:45 central time, but I have ot leave the office for a couple of days rest. First, an announcement, and thank you for your prayers yesterday. At about 5:30 p.m. yesterday was born Arthur Myles Sanders, first child of Zachariah and Victoria Sanders, safe and sound. For Susan and me, Arthur is the fifteenth grandchild and fourteenth grandson. He's an absolutely beautiful baby, and mighty pink. Thank God. 

The correction I've been expecting in silver & gold came to roost yesterday. The FOMC's announcement, with its garlic breath hint of raising interest rates, sent the dollar up & stocks, gold, silver, & commodities down. Before y'all panic, remember that IN GENERAL the dollar is on one end of a seesaw and metals and commodities on the other end. Dollar up, commodities down, and vice versa. Thus this should have surprised no one. 

By the way, note that the Fed will NOT be raising interest rates anytime soon. They tried that in December and crashed durn near every stock market in this sublunary globe. A mere whiff of lower rates Wednesday sent stocks tumbling again, and as I write this the Dow is down 113.1 (0.65%) and the S&P500 down 11.72 (0.57%). 

And oil and the other inflation markets were all set up for a fall in any event. The plunge awaited only a catalyst, and a higher dollar kindly & generously supplied that. 

Our only interest in all this, other than as spectators at the destruction of the world's economy to benefit banks, central banks, and globalists, is how far silver & gold might fall, and how great an opportunity to buy that will bring us. 

Lo, I can only guess, but am willing. Here's a dolled-up gold chart, 
Since mid-February gold has traded in an uptrending range. Bottom boundary thereof today lies about $1,240, not far below the often-supportive 50 DMA (1,251.86). A shallow correction would stop there. 
A more serious correction would sink to support between $1,190 and $1,208. A bruising & bloodying correction would reach the 200 day moving average at $1,158.50. 

My guess is that the fall will be enough to sift out the thick crowd of speculators, but not enough by far to wound gold seriously -- say, $1,190 to $1,208. Gold should reach this low fairly fast (assuming it breaks $1,240 - $1,245), maybe next week. 

Now look at silver, 

The height of that triangle implies silver will fall at least to 1600¢. However, given silver's greater volatility, it could fall all the way to the 200 DMA at 1515. I expect something more like 1575 will catch it. 
Y'all must remember to buy when there's blood in the streets. You'll find your heart in your throat, but ignore it. 

Please remember the prices I am showing here today are closes for gold, silver, platinum, & palladium, but not for stocks or the US dollar index. See y'all Monday, God willing.

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.