Tuesday, October 18, 2016

Both Silver and Gold Prices Flashed that Little Sign Today

18-Oct-16PriceChange% Change
Gold Price, $/oz1,260.806.400.51%
Silver Price, $/oz17.590.170.95%
Gold/Silver Ratio71.673-0.311-0.43%
Silver/Gold Ratio0.01400.00010.43%
Platinum Price932.7010.301.12%
Palladium Price638.351.600.25%
S&P 50021,396.0013.100.06%
Dow in GOLD $s297.78-0.27-0.09%
Dow in GOLD oz14.41-0.01-0.09%
Dow in SILVER oz1,032.46-5.44-0.52%
US Dollar Index97.890.010.01%
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:1,261.20
American Eagle1.001,296.511,303.451,303.45
1/2 AE0.50642.70665.281,330.57
1/4 AE0.25324.50338.951,355.79
1/10 AE0.10132.32138.101,381.01
Aust. 100 corona0.981,228.811,237.811,262.81
British sovereign0.24299.11312.111,325.88
French 20 franc0.19233.11237.111,270.01
Maple Leaf1.001,271.201,285.201,285.20
1/2 Maple Leaf0.50725.19662.131,324.26
1/4 Maple Leaf0.25321.61337.371,349.48
1/10 Maple Leaf0.10133.69137.471,374.71
Mexican 50 peso1.211,511.381,522.381,262.65
.9999 bar1.001,265.611,273.201,273.20
VG+ Morgan $B4 19050.7725.0027.0035.29
VG+ Peace dollar0.7720.0022.0028.76
90% silver coin bags0.7213,213.2013,499.2018.88
US 40% silver 1/2s0.304,994.355,144.3517.44
100 oz .999 bar100.001,738.001,773.0017.73
10 oz .999 bar10.00177.30182.3018.23
1 oz .999 round1.0017.3817.8817.88
Am Eagle, 200 oz Min1.0019.0820.5820.58
Plat. Platypus1.00947.70977.70977.70

There's a saying describing some sign as "a little cloud like a man's hand on the horizon." Easy to overlook such things, but dangerous, as dangerous as over-estimating them.

Both silver & gold prices flashed that little sign today. Both broke out of even-sided triangles, or, you might call them "flags." Y'all look with me.

Here's the gold chart, http://schrts.co/pbxEDM

Lo and behold! Gold Price closed up 6.40 (0.5%) at $1,260.80. That close busted through the top of that triangle and closed barely below the 200 day moving average ($1,263.75). The MACD is turning up and the histogram is shrinking.

What must the little sign do to prove itself? First, close above that 200 DMA, preferably tomorrow. Second, keep marching upward. Third, keep on increasing volume, as it did today. Over the longer haul it needs to close above the 20 DMA and $1,300. Brutal, I know, but accurate.

Comex silver today rose 16.5¢ (0.9%) to 1759.1¢. Cast your eyes here for the chart, http://schrts.co/o96FnV

Silver's chart looks way stronger than gold's, but then, it hadn't broken down as badly. For instance, when silver broke down, it fell out of its channel and tumbled, but stopped at its 200 DMA, screech! Now today it busted out the top of that even-sided triangle, and also closed barely above the channel line. Strong as a garlic milkshake. Well, strong as a shallot milkshake anyway.

RSI is rising after being oversold, MACD is turning up, histogram is thinning. All this is hopeful, but must continue. Silver next must re-conquer that last breakdown point at 1800¢. Not looking for glory rides here, merely for steady advance. That'll do.

Now ponder with me the gold/silver ratio, pictured here, http://schrts.co/kh9gOy

Recall that the ratio moves opposite to silver & gold, so a falling ratio points toward rising prices. The ratio broke above that interior (blue dashed) channel line and leapt plumb to the 200 DMA at 74. Panic passed, it dropped back. Has traced out a flag since then & come back to that interior channel line and is ready to punch through it. RSI is falling, MACD is turning eyes downward. It's giving all the signs of breaking down, now just needs to follow through.

Now add to this stew what I told y'all about rising silver AND gold premiums yesterday. That means buyers are hitting the market hard, soaking up available inventory. Dealers raise the premium they pay to try to attract sellers. That happeneth not when buyers are lethargic.

Now that scrofulous, wicked US dollar insect -- whoops, index -- blood sucker of nations, rose one small basis point today, to 97.89. It has crushed the euro & yen, but now appears to be rolling over or running out of steam. Dollar weakness here would certainly accelerate silver & gold.

I wonder sometimes if it's even worth mentioning the Gaga, Never-never Land of Stocks, so withdrawn from reality by central bank manipulating. I'll do it anyway, but with a not very good grace. Dow rose today 75.54 to 18,161.94, gaining today about what it lost yesterday, & sliding, sliding, sliding toward the abyss. S&P500 rose 13.1 to 2,139.60.

What seizes my attention and knocks out the pit of my stomach is interest rates. Oh, my, when central banks lose control of interest rates, the whole world will be dancing like a roach on a hot griddle. Looky here, at the 10 year US Treasury yield: http://schrts.co/kswBVp

Ya'll see that it has been steadily rising since July's low, and is drawing a bead on that downtrend line from 2007? Today it stands at 1.749%, and that line stands at about 1.95%.

Here's the 30 year treasury bond. Look here, http://schrts.co/IoR0Nw

That thing you see that marches from upper center to lower right is called a "Downtrend." The bond's price is trending down, and since the July all time high has lost nearly 8%. It "threw over" to the July high, broke back into the rising wedge, kept falling, sliced through the 200 DMA like Susan with a new Cutco knife slicing a Claussen's pickle (or her finger), fell through the bottom wedge boundary, and continueth to tumble. If I was Janet Yellen, I'd be working on my resume. If I were a central banker watching this bond rolling down the hill, I'd be sweatin' bullets and spittin' ahrn filin's. More trouble there than a roomful of drunks with guns , knives, and ill tempers.

This is waxin' int'resting. I noticed, too, that even the mainstream media says the Hillarbeast's poll numbers are falling. They just don't get it, the Insiders, the politicians, or the media. A world wide revulsion against globalism & all the post WW2 policies is taking place that will send them all running for the baseboards like cockroaches when the light switches on. No reason to cry about that, unless you like cockroaches.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger
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