Gold Price Close Today : 1641.90 Change : 22.90 or 1.4% Silver Price Close
Today : 40.081 Change : 0.783 or 2.0% Gold Silver Ratio Today : 40.96 Change :
-0.233 or -0.6% Silver Gold Ratio Today : 0.02441 Change : 0.000138 or 0.6%
Platinum Price Close Today : 1795.50 Change : 2.80 or 0.2% Palladium Price Close
Today : 827.40 Change : -0.60 or -0.1% S&P 500 : 1,254.05 Change : -32.89 or
-2.6% Dow In GOLD$ : $149.40 Change : $ (5.49) or -3.5% Dow in GOLD oz : 7.227
Change : -0.266 or -3.5% Dow in SILVER oz : 296.07 Change : -12.66 or -4.1% Dow
Industrial : 11,866.62 Change : -265.87 or -2.2% US Dollar Index : 74.47 Change
: 0.212 or 0.3% Well, SILVER and GOLD fooled me yesterday and I got an answer to
why PLATINUM and PALLADIUM rose yesterday when silver and gold fell. I salvaged
something by warning y'all not to write gold off yet. US DOLLAR INDEX continues
to confirm that it has bottomed. Grabbed another 21.2 basis points today to
close at 74.474. Needs to better its 20dma at 74.75, then the 50 dma at 74.78,
and then will draw a bead on 76. By the way, I looked at a long term dollar
index chart today, back to 1971, and it projects a dollar index move to --
y'all, I am NOT making this up -- 39. Simple head and shoulders target
measurement, which almost always works. Still want to hold on to those
dollar-denominated investments? Certificates of Deposit? Bonds? Annuities? Any
promise to repay dollars tomorrow is a guaranteed loser. Happy
de-capitalization! Merry expropriation! Jolly impoverishment! My upside target
for the Gold Price when it broke through $1,560 was $1,675. Right now it's
trading over $1,660. Yeah, yeah, yeah, ought to slow down, ought to correct, but
. . . Why did gold rise after what should have been for gold the BAD news of the
debt ceiling deal? Why did it do the same after the Greek bailout deal? Maybe no
more complicated than gold has the bit between its teeth in a third wave up and
it will astonish even its wildest fans. Don't know. Working at finding a higher
target. Oh, and don't forget this: when some uninformed clown, paid by media or
government or otherwise, tells you that silver and gold are in a bubble, ask him
this: If the dollar index at 74.5 means gold at $1,660, what does the dollar
index at HALF that value imply for gold? A double? More? Gold rose 1.4%, the
Silver Price rose 2% or 78.3c to close Comex at 4008.1. In the aftermarket
shorts panicked and now it's trading at 4082c. 4040c was the kryptonite barrier,
and when silver leapt over that, why not run farther? May take a breather
tomorrow, but silver has its eye on 4100c and higher. Markets are demoralized
and confused -- well, stocks and currencies are, while silver and gold were a
bit bewildered then roared. Still, this sort of volatility often accompanies
turnarounds, so be careful. Both metals may take a breather tomorrow. As long as
the Gold Price remains higher than $1,620 and the Silver Price above 3900c, they
will move higher. DOW IN GOLD DOLLARS in the last three days has fallen nearly
to its March 2009 low of G$145.37 (7.032 oz), stopping today at G$149.40 (7.227
oz). Target for this fall might be the last low, but the turnaround there will
be brief. Better target is G$114.28 or 5.528 oz of gold. Problem with reading
markets is that the market's enthusiasm or depression is catching. Somehow you
have to guard yourself from believing a falling market, especially one that has
fallen a long way recently, will just keep falling for every. You have to keep
looking for that rally, and vice versa for rising markets. Bur mercy's sake,
what can you say about stocks? The Dow today fell 265.87 points, crashing
through support at 12,000 like pushing through wet toilet paper, never even
slowed down. That fall took it to the last intraday low (11,863) and way below
the 200 day moving average (11,987). Well, take a deep breath. Dow is in a bear
market, and has spent much of its life since 2000 beneath that 200dma as bear
markets always do. This time the 200dma might catch it, but sooner or later it
will sink beneath that wave and not be seen again. Add to this the Dow's
plunging after the uncertainty of the debt ceiling drama was removed. Shouldn't
that good news make it rise? Falling on good news, well, as Tarzan's safari
leader would say, is "Bad juju, Bwana." You can almost hear those drums beating
through the jungle. Then there's the little item of that double/double top the
Dow traced out in July, matching the May top. I add all that up and conclude the
Dow might rally from here, but more likely it will drop to 11,555, the last low.
If it fails to get a grip there, look for 11,258. Stocks -- they are as reliable
as a cat's love or a dog's compliment. Euro closed 1.4196, continuing to decline
toward its intrinsic value of zero. Japanese yen rose to 129.74 (Y77.07/$). On 3
September 2011 we will host our yearly Bodacious Hoedown at the Top of the World
farm. More details as they feed them to me. So far I know: food, dancing, Old
Time band, games (one or more of which I will be the goat for.) 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. 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
outlook. I write them for long-term investors in physical metals. Take them as
entertainment, but not as a timing service for futures.
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