Monday, October 31, 2016

Be Very Patient. Higher Gold Price is Coming

31-Oct-16PriceChange% Change
Gold Price, $/oz1,271.50-4.00-0.31%
Silver Price, $/oz17.760.000.00%
Gold/Silver Ratio71.585-0.225-0.31%
Silver/Gold Ratio0.01400.00000.31%
Platinum Price975.80-2.40-0.25%
Palladium Price617.451.650.27%
S&P 5002,126.15-0.26-0.01%
Dow18,142.42-18.77-0.10%
Dow in GOLD $s294.960.620.21%
Dow in GOLD oz14.270.030.21%
Dow in SILVER oz1,021.42-1.06-0.10%
US Dollar Index98.350.010.01%
IMPORTANT NOTE: The following are wholesale, not retail, prices. To figure our retail selling price, multiply the "ask" price by 1.035. To figure our retail buying price, multiple the "bid" price by 0.97. Lower commissions apply to larger orders, higher commissions to very small orders.
SPOT GOLD:1,277.40


GOLDFine Tr.Oz.BIDASK$/oz
American Eagle1.001,314.441,320.191,320.19
1/2 AE0.50650.96673.831,347.66
1/4 AE0.25328.67343.301,373.21
1/10 AE0.10134.02139.881,398.75
Aust. 100 corona0.981,245.851,254.851,280.19
British sovereign0.24302.96315.961,342.21
French 20 franc0.19236.11240.111,286.05
Krugerrand1.001,294.011,304.011,304.01
Maple Leaf1.001,287.401,301.401,301.40
1/2 Maple Leaf0.50734.51670.641,341.27
1/4 Maple Leaf0.25325.74341.701,366.82
1/10 Maple Leaf0.10135.40139.241,392.37
Mexican 50 peso1.211,532.331,543.331,280.03
.9999 bar1.001,281.871,289.401,289.40
SPOT SILVER:17.87


SILVERFine Tr.Oz.BIDASK$/oz
VG+ Morgan $B4 19050.7725.0027.0035.29
VG+ Peace dollar0.7720.0022.0028.76
90% silver coin bags0.7213,381.2313,667.2319.12
US 40% silver 1/2s0.305,078.435,228.4317.72
100 oz .999 bar100.001,766.501,801.5018.02
10 oz .999 bar10.00180.15185.1518.52
1 oz .999 round1.0017.6718.1718.17
Am Eagle, 200 oz Min1.0019.3720.8720.87
SPOT PLATINUM:975.80


PLATINUMFine Tr.Oz.BIDASK$/oz
Plat. Platypus1.00990.801,020.801,020.80

Markets fell strangely silent today, probably terrorized into inactivity by the election.
Suspicious as I am, I wonder that FBI Chief Comey couldn't find enough to indict Clinton back in the summer, but now at the worst time for Hellery discovers thousands of gamey emails. Mmmm. Sounds like Clinton's sponsors & backers among the Elite are backing off, dropping her. If so, she must stink worse than we know.

Now before y'all start ringing up the loony bin and asking them to haul me away as a paranoid, ponder this. Franklin D. Roosevelt, a Democrat,mind you, said, "In politics, nothing happens by accident. It if happens, you can bet it was planned that way." Y'all just hang up the phone & put away the strait jacket.

Here's the US dollar index chart, http://schrts.co/OkJ5UT

US dollar index moved up one microscopic basis point today to 98.35. Last Tuesday the 25th it hit the move's intraday high , 99.09, but ended the day with a lower close, then clinched a key reversal next day with a lower close. Today it tried to rise, but just couldn't muster the resolve. Probably ready for a correction. If Trump wins that might cause a knee jerk reaction of dollar selling. Might.

Euro continues to deteriorate. Lost 0.05% today for a $1.0980 close. Sick as a gutshot dog. Yen also continues to slide & slide. Lost 0.11% today to 95.39.

US 30 year treasury bond can't stop rolling downhill. Has now fallen out of a rising wedge, back into the (blue outlined) trading channel it "threw over" in July. Way below all moving averages. I hope Janet Yellen has stocked up on Rolaids and Scotch, cause she's gonna need 'em. Bond bomb is set to explode. Chart is here, http://schrts.co/ujZfjd

'Twas a rotten week for stocks, fighting to climb over the 20 day moving average, in vain. Today they backed up again. Dow lost 18.77 (0.1%) to 18,142.42 while the S&P500 lost 0.26 (0.01%, can you see that? Squint harder.). Today marked the fifth day the S&P500 has dropped. Fifth day in a row.

Gold shuttered Comex today down $4.00 (0.3%) at $1,271.50. Silver was -- get this -- unchanged at 1776.2¢. That rarely happens.

Go look at the gold chart, http://schrts.co/pbxEDM

Gold broke out of a flag earlier this month & has risen, fandangoing over its 200 DMA, ever since. Notice the volume: it keeps rising as gold rises. Notice also a new intraday high Friday at $1,285.40. And pass not by the other positive indicators, the MACD and RSI. But this is all imagination & pixie dust till gold busts through $1,300 resistance, now running with the 50 DMA at $1,302.67.

Be patient. Be very patient. Higher gold price is coming.

Here's the silver chart for your viewing pleasure, http://schrts.co/o96FnV

Like gold, silver drew a pennant during October's first half. Since then it has broken out to the upside, climbed through its 20 DMA, and crawled back into the trading channel it briefly fell out of. RSI & MACD are positive, and silver has been rising on rising volume.

So far, so good, but silver can only gain traction by crossing 1800¢ resistance. Be patient, silver is closing in on it.

Here's the gold/silver ratio. This is not as cooperative as it might be. It rallied October first with the gold & silver plunge, but backed off & has been trading sideways above 71. I don't particularly admire that. An advance in metals ought to take it below the 50 DMA, now 70.27. MACD & RSI have turned down, so the ratio ought soon to follow.

Reader GR asked me about platinum, which I seldom mention. Here's a daily platinum chart for 12 months, http://schrts.co/gP7sGo Looks about like the silver chart, but still struggling to climb above its 200 DMA. It will, it will, and soon.

More to the point is this gold/platinum spread chart, http://schrts.co/zf5rKd With gold trading 1.3 times (130%) platinum, the spread lies in the far upper end of the range, but won't prove it has changed direction until it falls through that blue uptrend line. Minute it does that will be time to buy platinum or to trade a little (a little) gold for platinum.

To sum it all up, silver & gold are slugging they way forward against a headwind. All markets are quiet, suggesting they are afraid to move, uncertain what the election will bring. If the FBI keeps piling into Hellery, that could change. Markets hate uncertainty.

My trip to Virginia was really refreshing. Took 10 hours to drive from Dogwood Mudhole to Roanoke. I asked the clerk at the motel if there was a Mexican restaurant nearby, he said right next door. I walked over there and sitting there realized that I actually enjoyed watching Susan eat more than eating myself. She ate with such gusto it was fun to watch, and this tiny 120 lb woman could eat way more at a sitting than I could. She had the metabolism of a shrew: they have to eat their body weight every day or fade away.

Next day I hit the jackpot. I hate eating at chain restaurants, but it's not easy to find a Mom & Pop place near the interstate. Stopped & asked and was pointed to Angelle's Diner, 2609 Lee Highway, Troutville, VA -- angellesdiner.com. Sweet, welcoming folks and wonderful REAL Southern food. The country ham was perfect, without that aftertaste that sometimes mars its beauty.

I got off I-81 and drove up the Lee Highway (US 11), a road Susan & I have travelled many times, with children, grandchildren, & by ourselves. Drove to Natural Bridge, then on to Lexington, stopping first at the Stonewall Jackson Cemetery to visit Jackson's grave. Can't go to Lee's tomb any more, as the cowards at Washington & Lee have removed the original Army of Northern Virginia battle flags that hung there.

Everywhere I was surrounded by sweet memories & the grace of God. I'd play music Susan loved, and I'd cry and I'd laugh, but I was still comforted. At synod in Richmond I saw lots of old friends who all graciously sympathized. They all loved Susan, too.

So I'm back. Managed to drive the whole way through carnivorous traffic & remain alive, much to my children's astonishment, & I'm going back to work. God is good to me, and I am grateful.

Forgotten in the Hallowe'en frenzy is that tomorrow is All Saints Day when we celebrate all God's people who have gone before us and now with all the company of heaven wait for us.

Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger
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