Tuesday, May 31, 2016

Your Last Opportunity to Buy Gold on the Cheap

31-May-16PriceChange% Change
Gold Price, $/oz1,214.801.000.08%
Silver Price, $/oz15.97-0.27-1.69%
Gold/Silver Ratio76.0581.3441.80%
Silver/Gold Ratio0.0131-0.0002-1.77%
S&P 5002,096.96-0.10-0.00%
Dow in GOLD $s302.68-1.71-0.56%
Dow in GOLD oz14.64-0.08-0.56%
Dow in SILVER oz1,113.6513.491.23%
US Dollar Index95.880.380.40%

One of my sons and his wife want to sell their house built in 2011 here on our farm & move nearer her work. Here's a link to the listing, http://bit.ly/1r1EsUP 

The house has four bedrooms, three baths, and 2,061 square feet, & sits on 2-1/2 Acres on a gravel road. They originally listed it for $210K, it appraises for $185k, & now they've lowered the price to $148k. They're in a hurry. You northerners won't believe this, but yearly taxes are only $518.00. Check the listing, and look at the pictures yourself. 

Let us not mince words: stocks were saved today by a "miraculous friend" who entered the falling market PRECISELY one hour before close to buy like a mad dog -- like somebody to whom money is no object. Who would do such a thing? Who indeed? Investors? 

Y'all don't take my word for anything. God to www.nasdaq.com and click on every one of those index charts. Look at 'em. Every one was invaded by friends right at 3:01. 

Some of us who don't believe in stock faeries might suspect the Nice Government Men had a hand in that, but we are all jaundiced cynics. 

Dow ended down 86.0 (00.48%) at 17,787.20 while the SP500 lost only 2.0 (0.1%) for a close at 2,096.96. 
Mercy, they can fight gravity all they want, but eventually gravity will wreak its vengeance. Stocks are completing a head and shoulders top, whether "friendly" buying saved them from closing below their 50 day moving averages today or not. Stocks have cracked. Like an egg falling out of the cracked shell over a skilletfull of hot bacon grease, nothing sizzling yet, but just you wait till it hits that hot grease. 

US dollar index rose 38 basis points (0.4%) to 95.88, yet did not crush gold. Mmmm. Dollar index continues it slothful rally, reaching toward the breaking point at the 200 DMA, now 96.62. A failure there would put some nitro in gold & silver's tank. A punch through that 200 DMA might give 'em flat tires. 
Today was actually an up-day for Gold, although the $1.00 (0.08%) higher close at $1,214.80 on Comex doesn't look like much. Not so silver, which lost 27.4¢ (1.7%) at 1597.2¢. 

Gold's low today came at $1,201.50, and gold is putting up a stout fight at $1,200, as expected. Should gold break the $1,200 support, it will fall to $1,190 or even to the 200 DMA, now at $1,163.74 & rising. Y'all may want me to step out on a limb with a definite target, but no. I'll give you a target in time, however, and that is three weeks at most for gold to reach a low. And I don't expect to see it fall much below $1,190, albeit I will be nothing downcast if it spikes to $1,140 one day. Y'all should view all of this as your last opportunity to buy gold on the cheap. Chart: http://schrts.co/Edby9s 

Silver's low reached 1591¢. Today's weakness makes that 1590¢ resistance look mighty rickety. My two foremost targets for silver are this 1600¢ area it's playing in today, or the 1575¢ level, where the uptrend line form the January low hits, or below that, the 200 DMA (now about 1520¢) where the downtrend line from the April 2011 high will catch it. Remember that silver broke upward through that line in April. Here's the chart, with red arrows on those targets, http://schrts.co/Hg7S2A 

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.