Thursday, June 30, 2016

Silver and Gold Prices will Move Much, Much Higher - Better Buy Your Ticket Now, or you'll Miss the Train

30-Jun-16PriceChange% Change
Gold, $/oz1,318.40-5.50-0.42%
Silver, $/oz18.580.221.19%
Gold/Silver Ratio70.950-1.142-1.58%
Silver/Gold Ratio0.01410.00021.61%
Platinum1,021.5010.201.01%
Palladium598.156.651.12%
S&P 5002,098.8628.091.36%
Dow17,929.99235.311.33%
Dow in GOLD $s281.134.841.75%
Dow in GOLD oz13.600.231.75%
Dow in SILVER oz964.911.360.14%
US Dollar Index96.070.270.28%

Cannot cover everything in one day, so some spilleth over from one day to the next. I mean, of course, the performance of platinum & palladium last 2 days. 

Yesterday platinum shot up $32.40 (3.3%), and another $10.20 today to close at $1,021.50. Chart's here, http://schrts.co/gP7sGo Platinum has completed a sloppy head and shoulders bottom that began last July. After a false breakout through the neckline in May, it fell back but today broke out above the neckline and above the 50 DMA. Ready to boogie. 

On Wednesday Palladium jumped $19.3 (3.4%) & added another $6.65 (1.1%) today, ending at 598.15. That close carried it above the 20, 50, and 200 day moving averages, and confirms an earlier breakout through the short term downtrend line. Also ready to boogie. Chart, http://schrts.co/dY8ozq 

If you're going to swap gold for platinum, you'd better get about it. The gold-platinum spread is screaming down, from $347.40 on 27 June to $296.30 today, and about to puncture the uptrend line. 
Prince Grigory Aleksandrovich Potemkin-Tavreski was a favorite of Catherine the Great, a little too favorite, in fact. When Catherine was about to visit the southern provinces he was governing, he (allegedly) constructed fa├žades of houses & filled the fake streets with actors paid to look like happy villagers. While the official inspection procession slowly made its way to the next spot, the Potemkin village was dismantled and moved with the actors to that next spot, the village re-assembled, and the actors positioned. The region's prosperity & happiness impressed the inspectors & Catherine. 

Last three days our modern day Potemkins, the central banks, and the Nice Government Men, have been building their own Potemkin villages in stocks. It wouldn't do for the inspectors at the end of 2 Quarter 2016, the end of the first half, to see stocks at those Brexit rabbit-punched levels. So they spent three days straining themselves to pump those stocks up for respectable end-of-quarter numbers. Like Potemkin's village, 'twill disappear as soon as the inspection has passed. 

Actually comparing Potemkin to those criminal central bankers is an insult to a man who, on balance was a great leader. 

US dollar index came back today, rising 27 basis points (0.28%0 to 96.07. That took the euro down and killed its phony dead varmint bounce. It lost 0.21% to $1.1096. Yen lost 0.25 to 96.85. 

Dow added another 235.31 (1.33%) to end at 17,929.99. Interesting, when you view the 5 day chart, that both Tuesday and Wednesday began with a big jump up, as if some big buyer came in all at once, and that gulled the rest into buying. Never mind. S&P500 added 28.09 (1.36%). 

So far all this is no more than a successful transit back up to resistance. A failure here besmirches the chart with a trail of lower highs and lower lows on the chart. 

Gold closed down $5.50 (0.4%) at $1,318.40 but silver rose another 21.8¢ (1.2%) to 1858.2¢. Those were the Comex closes. 

That don't half tell the story. Silver's high today at 1875 was its highest price since 12 September 2014. In the aftermarket silver kept right on climbing that mountain, clutching handholds in the rocks and traded at 1877.5¢. One website I use quotes another market where the high was 1889¢. Silver has gained 100¢ in the last three days. 150¢ since the 21st. 

Silver's strength reflects in the gold/silver ratio, which dropped today 1.6% to 70.950. It has gapped down two days running, and is nearing a new low for the move that began over 84 in March. The ratio has plunged almost 16% since 26 February 2016. Look at the chart for yourself, http://schrts.co/kh9gOy 
It appears silver & gold are NOT going to snooze through the summer, as they usually do. 

Silver & gold will move much, much higher. Better buy your ticket now, or you'll miss the train. 

Aurum et argentum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 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.