|Dow in GOLD $s||267.92||-4.59||-1.68%|
|Dow in GOLD oz||12.96||-0.22||-1.68%|
|Dow in SILVER oz||965.97||-12.20||-1.25%|
|US Dollar Index||96.70||1.13||1.18%|
Turmoil continued to boil & roil stock markets today. Dow in Gold has simply collapsed.
Both the Dow 7 the SP500 closed below the necklines of those head and shoulders formations, AND below their 200 day moving averages, a poisonous cocktail. Dow lost 260.51 (1.5%) to close at 17,140.24 while the S&P plunged 36.87 (1.81%) to 2,000.54. Whoa.
Dow in gold has broken down from its megaphone pattern and closed today at 12.91 oz, less than half an ounce above the February low at 12.56 oz.
Stocks have only begun to fall -- around the globe. 2008 Part 2 may have begun.
US dollar index rose another 113 basis points (a huge 1.185) to 96.70. Euro sank, of course, 0.7% to $1.1026, more evidence that central banks manipulate the snot out of currency markets. Yen rose 0.24 to 98.06.
When they weren't heavy lifting the dead weight of the euro today, the Nice Government men must have been bashing gold. It did reach a high at $1,340, and closed $2.5 higher at $1,322.50, but needs to step on out!
Silver lost 4.5 cents today to 1774.4. People keep asking me why silver hasn't risen as much as gold. Plainly, because this rally is being driven by financial panic. In part that panic is a REVULSION against fiat currencies and in favor of gold. Silver will ride along, be patient.
This leg up has NOT ended. Gold does need to stay above $1,300, and silver needs to wipe out that little non-confirmation by busting out over 1800¢.
Sorry, no commentary tomorrow. I'll be finish up my monthly Moneychanger newsletter for paid subscribers.
On 27 June 1893 the New York Stock Market crashed. By year end, 600 banks and 74 railroads had turned hooves up to the sky. Now I wonder why so many BANKS, of all things, and RAILROADS would go bust? Couldn't have anything to do with fractional reserve banking, the same old overindebtedness credit bubble we are watching today, could it? And railroads? Could have anything to do with government involving themselves with railroads and even financing them. Nawww.
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.