For Now Silver and Gold Prices Remain in a Down Trend

Gold Price Close Today : 1616.10 Change : (34.50) or -2.1% Silver Price Close
Today : 30.084 Change : (1.400) or -4.4% Gold Silver Ratio Today : 53.72 Change
: 1.293 or 2.5% Silver Gold Ratio Today : 0.01862 Change : -0.000459 or -2.4%
Platinum Price Close Today : 1531.00 Change : -35.00 or -2.2% Palladium Price
Close Today : 623.00 Change : -27.00 or -4.2% S&P 500 : 1,151.06 Change : -24.32
or -2.1% Dow In GOLD$ : $140.84 Change : $ 0.71 or 0.5% Dow in GOLD oz : 6.813
Change : 0.034 or 0.5% Dow in SILVER oz : 366.01 Change : 10.56 or 3.0% Dow
Industrial : 11,010.90 Change : -179.79 or -1.6% US Dollar Index : 77.92 Change
: 0.414 or 0.5% Sobriety visited the stock market today, and no one was much
pleased to meet her. Dow made raggedy attempts to rise, but about 1:00 Reality
and Sobriety began selling, and from there it was all downhill and
Katy-bar-the-door. Dow sank 1.61% (179.79 points) to 11,010.90, vomiting back
all yesterday's gains and part of the day before's. S&P lost 2.07% (24.32
points) to 1,151.06. Gone are the visions of the Great Bucket taking away all
the sovereign debt problems, and returned are the grim facts of economic
outlook. In Europe the eurocrats are leveraging the crisis to further their
schemes of centralizing more power. Wow, now there's a surprise. US DOLLAR INDEX
yesterday made the "final kiss good-bye" to its breakout point, and today gained
41.4 basis points (0.5%). Dollar's liable to run strong for a week or so, and
today was already tapping on 78. The 50% retracement of the decline that began
mid-2010 and bottomed in May 2011 is 80.58. The Franken-currency, the euro,
continues to tumble since falling out of its trading range earlier this month.
Today closed down a hair at 1.3545. Count on seeing 1.3000, and wait on 1.2000.
Japanese yen remains on the upward side of a breakout and above its 20 dma.
Closed today at 130.66c/Y100 (Y73.53=$1). It's a good thing markets are so tough
to parse, otherwise the Riviera would be chockablock with successful investors
and the room prices would skyrocket. But as it is, just about the time you think
you understand what the market is doing, it pulls out the rug and your forehead
dives into the concrete. Take SILVER and GOLD . They fell today, right sharply.
Silver lost 140c, most of yesterday's 157c gain, to close at 3008.4c. Oddly
enough, Friday's close was 3006c, about the same. Gold closed Comex at
$1,616.10, down $34.50. Clearly, resistance at $1,675 yesterday has proven
victorious, but gold couldn't be broken below $1600 -- today's low hit
$1,598.60. So you look at that and the last few day's trading, and naturally
your little mind extends that fall indefinitely out into the future. But the
premium on US 90% silver coin rose yesterday, and today again. Now wholesalers
are buying 90% at 85c an ounce under spot and selling at 25c over. Look over
your shoulder, too, at that Gold/Silver Ratio, which broke out over 45.50
resistance and has traded as high as 54.481. These things argue AGAINST lower
prices. The SILVER PRICE defended 2950c today, too, and if it can hold that,
then Monday becomes a spike bottom. The GOLD PRICE defended the $1,600 level in
like manner. So far, so good, but the past 3 days action also might be a
reaction to a low, rolling over and turning down once again. As I said, if this
was easy, we'd all be living on the Riviera, smoking two dollar seegars,
drinking Ripple, eating gooey-center bon-bons and driving big Chevys. Scoping
these markets is all the more tricky because so many huge traders use computer
programs, which exacerbates, accelerates, and exasperates every move up or down.
But I am anticipating. For now SILVER and GOLD PRICES remain in a down trend and
have done nothing to contradict that. Be patient, keep your money dry and ready
to buy more silver and gold. I apologize that our phones have been so jammed
since Friday that we have not been able to return calls timely. Please forgive
us. For those of you who want to swap GOLD for SILVER at our trigger point 57.5,
I suggest that rather than try to reach us while everybody in the world wants to
make a trade or ask a question, you enter an open order with us. That way when
the market hits the trigger, we enter the order, but you need to understand that
an open order is just like entering an order with us by phone. Unless you call
and terminate it before the market hits the trigger price, we will enter the
order and cannot later change or cancel it. To enter an open order you must make
a $200 deposit, refunded when the order is entered or if you terminate the order
before it is entered. For a letter that explains all this and offers a form for
the open order, please send us an email at with "Open Order Letter" in the
subject line. 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. WARNING AND
DISCLAIMER. 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 short
term trading outlook. I write them for long-term investors in physical metals.
Take them as entertainment, but not as a timing service for futures. NOR do I
recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT
physical metal and I fear one day one or another may go up in smoke. Unless you
can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary
of traps. NOR do I recommend trading futures options or other leveraged paper
gold and silver products. These are not for the inexperienced. NOR do I
recommend buying gold and silver on margin or with debt. What DO I recommend?
Physical gold and silver coins and bars in your own hands. One final warning:
NEVER insert a 747 Jumbo Jet up your nose.