Thursday, October 20, 2016

Gold Price Trades Back to the Breakout for a Final Kiss Good-Bye

20-Oct-16PriceChange% Change
Gold Price, $/oz1,265.60-2.30-0.18%
Silver Price, $/oz17.50-0.11-0.65%
Gold/Silver Ratio72.3120.3370.47%
Silver/Gold Ratio0.0138-0.0001-0.47%
Platinum Price931.20-8.90-0.95%
Palladium Price631.80-2.65-0.42%
S&P 5002,141.34-2.95-0.14%
Dow in GOLD $s296.66-0.12-0.04%
Dow in GOLD oz14.35-0.01-0.04%
Dow in SILVER oz1,037.734.430.43%
US Dollar Index98.310.370.38%
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:1,264.90
American Eagle1.001,299.051,307.271,307.27
1/2 AE0.50644.59667.231,334.47
1/4 AE0.25325.45339.941,359.77
1/10 AE0.10132.71138.511,385.07
Aust. 100 corona0.981,232.421,241.421,266.49
British sovereign0.24299.99312.991,329.61
French 20 franc0.19233.80237.801,273.68
Maple Leaf1.001,274.901,288.901,288.90
1/2 Maple Leaf0.50727.32664.071,328.15
1/4 Maple Leaf0.25322.55338.361,353.44
1/10 Maple Leaf0.10134.08137.871,378.74
Mexican 50 peso1.211,515.811,526.811,266.33
.9999 bar1.001,269.331,276.901,276.90
VG+ Morgan $B4 19050.7725.0027.0035.29
VG+ Peace dollar0.7720.0022.0028.76
90% silver coin bags0.7213,141.7013,427.7018.78
US 40% silver 1/2s0.304,964.855,114.8517.34
100 oz .999 bar100.001,728.001,763.0017.63
10 oz .999 bar10.00176.30181.3018.13
1 oz .999 round1.0017.2817.7817.78
Am Eagle, 200 oz Min1.0018.9820.4820.48
Plat. Platypus1.00946.20976.20976.20

Don't y'all get caught up in little day to day moves. Step back & look harder.
Yesterday silver and gold prices bettered their Tuesday breakouts. But alas! They fell back today. Does that mean the whole promise has been broken?

Not hardly. Usually when markets break out (up or down), they trade back to the breakout for a final kiss good-bye. Offers the watchful a superb place to buy.

The GOLD PRICE lost $2.30 (0.2%) today to $1,265.60. Comex SILVER PRICE lost 11.4¢ (0.7%) to 1750.2¢.

Here's a gold chart,

Gold poked through the 200 day moving average yesterday (yeah!), then kissed back to it today. Meanwhile rate of change is straight up and MACD has turned unequivocally positive.
Silver chart's right here,

The SILVER PRICE  followed a similar pattern. Broke out of triangle Tuesday, advanced yesterday, dropped back to breakout line today. So where are we? With a rally beginning, PROVIDED silver & gold keep rising again.

Here's more evidence of strong physical demand. The cheap small gold coins I've been begging y'all to buy have plumb disappeared from the market, and most low premium gold coins are hard to locate. (Add this to what I told y'all earlier about the rising US 90% silver coins premium and rising gold coin premiums.) And this is happening suddenly.

Y'all don't reckon the sight of those two teenagers swapping insults on TV last night is panicking folks into buying gold, do you?

Not gonna waste time talking about stocks. They are trending down and without closes above 18,350 or 2170, downtrend will continue marching toward the cliff, and at last reach it.

US Dollar index chart is here. Hold your nose & look at it,

It has now risen past the July intraday high (97.62) & closed today above that at 98.31, having gained 37 basis points today (0.38%). Remains a bit iffy until it pulls past this new high, but assumption is it will continue higher. Odd, today's fairly meaty rise did not cause a big bruise on gold & silver.

Keep watching the bond markets for a Big Bang. 10 year treasury yield fell a little today, but stands above its 200 DMA.

Bottom line: SILVER & GOLD have a good sprout on a rally, but that sprout has to grow. Stocks are waiting for catastrophe. Can the Fed allow the dollar to keep climbing? I wonder. Sweat, Janet, sweat!

I hope y'all won't mind my sharing one more little Susan story. I said in her eulogy that she "adored planning parties & celebrations. She taught us to rejoice. Love made her play on purpose, just as she controlled everything else about herself on purpose."

First Christmas we were married we spent Christmas Eve with Susan's parents. She woke up as dawn cracked and danced downstairs like a six-year old . I clumped downstairs swollen and sullen with sleep. Susan was dancing around the tree, pulling out presents to show me. Clearly, I did not share her enthusiasm. She didn't like that. Finally she took a deep breath and searched for the worst name she could call me: "You're just a . . . mean, grumpy old person!" I deserved it.

A friend who is also widowed reminded me that his late wife (and our friend) often quoted C.S. Lewis' line: "Joy is the serious business of heaven."

Joy, dear friends, is serious business, and y'all better get serious about it.

Now some of y'all will read than and it will roll off like water off a duck's back, because you are too busy for joy. Others will see, & taste, & drink, & begin to understand why the most serious souls are also the very merriest.

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