The Entire Week's Trading had the Look of Past Silver and Gold Price Peaks

Gold Price Close Today : 1,556.00 Gold Price Close 21-Apr : 1,503.20 Change :
52.80 or 3.5% Silver Price Close Today : 4858.4 Silver Price Close 21-Apr :
4606.2 Change : 252.20 or 5.5% Gold Silver Ratio Today : 32.027 Gold Silver
Ratio 21-Apr : 32.634 Change : -0.61 or -1.9% Silver Gold Ratio : 0.03122 Silver
Gold Ratio 21-Apr : 0.03064 Change : 0.00058 or 1.9% Dow in Gold Dollars : $
170.19 Dow in Gold Dollars 21-Apr : $ 171.98 Change : $ (1.79) or -1.0% Dow in
Gold Ounces : 8.233 Dow in Gold Ounces 21-Apr : 8.320 Change : -0.09 or -1.0%
Dow in Silver Ounces : 263.68 Dow in Silver Ounces 21-Apr : 271.50 Change :
-7.83 or -2.9% Dow Industrial : 12,810.54 Dow Industrial 21-Apr : 12,505.99
Change : 304.55 or 2.4% S&P 500 : 1,363.61 S&P 500 21-Apr : 1,337.38 Change :
26.23 or 2.0% US Dollar Index : 73.050 US Dollar Index 21-Apr : 74.096 Change :
-1.046 or -1.4% Platinum Price Close Today : 1,874.90 Platinum Price Close
21-Apr : 1,816.50 Change : 58.40 or 3.2% Palladium Price Close Today : 794.45
Palladium Price Close 21-Apr : 768.85 Change : 25.60 or 3.3% In my unmannerly
haste and thoughtless last night I neglected to mention the poor tornado victims
in Alabama, and urge y'all to pray for their relief. Our county borders on
Alabama, and there were tornadoes all around us, even on the counties on either
side of us. I must apologize also that we were out of the office a large slice
of today, attending a funeral not connected to the tornadoes, but just over in
Alabama. Driving back into Tennessee every car on the four lane highway stopped
and pulled over until the funeral procession passed. So did the men mowing their
yards. If you want to know what kind of people live in Alabama, THAT kind of
people. Been rode so hard and put away so wet today I think my metaphor and
simile tanks are plumb dry, but I'll try anyway. What a week! After gobbling up
8.5% last week, SILVER chomped down another 5.5% this week, GOLD played catch-up
with a 3.5% gain, and PLATINUM and PALLADIUM woke up, but something strange
happened today. More later. Stocks gained this week, but not nearly as much as
gold, while the Bernancubus torpedoed the dollar, which was not a good idea
since it was already gunwales to the waterline. Alas, I ken not the wisdom of
the mighty, and am such a rube that their cleverness appears to me only -- dare
I reveal my own obtuseness in the face of their sophistication? -- garden
variety stupidity,. Thus I grasp not how killing your own currency will help
your economy. I told y'all I was obtuse. The US DOLLAR INDEX today slowed its
slide for the weekend. Today it lost only 7.1 basis points and came to rest on
the ledge-lip of 73 at 73.05. Technically you must believe it is headed for
70.70 (2008 low) soon and 40 eventually, but WAIT! Remember that all currency
exchange rates are played with by central bankers as wanton boys do play with
flies. They love nothing better than to seduce a market all in one direction --
like all the dollar shorts/euro longs right now -- then reverse their field to
punish all the trend followers. Oh, and to make the world fear them and believe
they are doing something. Well, they ARE doing something, namely, what they are
supposed to be doing: managing inflation expectations, so that the whole herd
runneth not out of their phony money at the same time. Euro made another new
high today, right now at 1.4807, but closed lower. After six days rising, that
might not mean much, but could be a key reversal. Yen rose again, to Y81.19/$
(123.17c/Y100). Stocks rose today. Dow added 47.23 to close at 12,810.54 and the
S&P followed along, gaining 3.13 to 1363.61. Note, I beg, that despite these
gains, stocks fell against silver and gold. I keep telling y'all that because I
know your ears are dinned by all the mainstream, conventional, degreed,
accredited, certified, MBA'd, polished, suited, and universally admired
advisors, brokers, and media pundits. They all keep touting stocks for the same
reason the man who owns the liquor store keeps that neon light in his window: he
is selling his product. Or, look at it this way: when all you have is a hammer,
everything looks like a nail. They have no screwdriver, no impact wrench, no
saw, no Gorilla glue, no tacks, just the hammer of stocks. And with astonishing,
nay, breathtaking ignorance they recommend you buy stocks even though STOCKS
REMAIN IN A PRIMARY DOWN TREND. Besides, I've learned something in nearly 64
years: those who do not know talk, those who know, do, and talk not. Search out
the fellow who is succeeding, never mind how spiffy he dresses and talks, and
watch him. You might learn something. Fact is, nowadays when folks start
flashing them degrees at me, I just yawn and look for a better game. They have
all been taught to think, all right, but all wrong. The Gold Price today took
off and by the time they were turning the key to lock Comex's doors, the Gold
Price had risen a massive $25.20 to close at $1,556. No laggard, the Silver
Price rose 106.4c to 4858.4c at closing, yielding a gold/silver ratio of 32.027.
Then something very odd happened. The Silver Price was rocking along about 4850c
-- after Comex closed, maybe 1:30 or 2:00 our time -- when suddenly it lost
about 70 cents, to 4750. Fell clean through a trap door, and took the ratio to
32.655. No news story precipitated that, and at the same time the Gold Price
ROSE, to $1,565-ish, as if somebody were doing a MASSIVE silver to gold swap all
at once. For silver that is lousy behavior, worse coming on the heels of this
week's volatility. It certainly poses the first half of a key reversal, and it's
up to silver to disprove that on Monday. Between silver and gold the entire
week's trading had the look of past silver and gold peaks. Monday saw a new
intraday high in the Silver Price -- 4982c -- and a new high closing ratio
(31.99) -- but a 218c decline from high to low, even though Comex Monday closed
higher than the previous trading day. This hot and cold indecision may arise
from nothing more than all the radiation pouring off the old 5000c high as the
Silver Price braces itself to breach that barrier. But mayhap also it is that
faltering and fluttering often seen at tops, like a baby bird flopping on the
ground, trying to get back up in the air but out of strength. Today's
unexplained Silver Price fainting spell doesn't build confidence. Just ask Dale
Carnegie. But mercy! What would have to happen to reverse silver? The 20 day
moving average, tripwire of a decline, stands at 4286c, some five bucks below
current price. And the Silver Price must break that line to turn down.
Everything else I have said is mere suspicion and anticipation. Well, I will add
that the Silver Price is more oversold than Barack Obama in 2008, and gold
nearly so badly. But "oversold" can persist a long time (in some cases 4 years).
Mainly the ratio's action sets the inside of my head to itching. A new low, then
a sudden rise (33.002 on 27 April), when it hasn't been doing that. And there's
that parabola on silver's chart. All this implies that the road ahead is washed
out someplace. Here are some brackets: The Gold Price keeps on rallying as long
as it closeth not under $1,505. 20 dma stands at 1,484, support at $1,445. Break
that and it might reach $1,380. Upside you are looking now at $1,600 very soon,
maybe higher. The Silver Price must not lose its grip on 4750c. Below that
support shows up at 4400c, and the 20 dma at 4286c, then 3600c. I have no upside
target for the Silver Price, and have not a clue how one might forecast same.
Let's guess and say that of course 5000c, the 1980 high, will be tough to break.
But what if silver breaks through? What then? A ratio at 28:1? Possible, I
reckon, but can that happen without SOME reaction first? Y'all enjoy your
weekend. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2011, 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 $195.66; stocks' primary trend
is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or
US$-denominated assets, primary trend down; real estate in a bubble, primary
trend way down. Whenever I write "Stay out of stocks" readers inevitably ask,
"Do you mean precious metals mining stocks, too?" No, I don't.