Gold Price Close Today : 1,650.60 Change : 58.10 or 3.5% Silver Price Close
Today : 31.49 Change : 1.57 or 5.0% Platinum Price Close Today : 1,574.00 Change
: 27.10 or 1.7% Palladium Price Close Today : 649.00 Change : 22.55 or 3.5% Gold
Silver Ratio Today : 52.42 Change : -0.81 or 0.98% Dow Industrial : 11,043.86
Change : 272.38 or 2.5% US Dollar Index : 78.12 Change : -0.14 or -0.2% Think of
a waterfall. The water flows over the edge of a cliff, plummets to a pool below,
splashes high up from the pool, then falls again to a lower pool. That pretty
well describes and forecasts waterfall declines in markets, such as what y'all
saw in SILVER and GOLD PRICES the last four days. When anything falls that far
that straight down, it is bound to bounce. The bounce may last quite a while,
the bounce may look stronger than a garlic milkshake, but it fails at last. I
confess I am no more than a natural born fool from Tennessee, and fools -- the
better fools, anyhow -- know enough to doubt themselves. Thus I might be wrong
and there may be no lower prices in the futures than those already observed, but
fool that I am, I still expect to see them. And bad as I got whipped by swapping
out of SILVER into GOLD too soon, I am willing to risk waiting too long now by
shooting for a higher target (57.5:1) than today's 51.638 . May be wrong, but at
least I won't be whipping myself for being rash. In a bounce worthy of Superman,
the GOLD PRICE today shot up $57.90 (3.6%) to $1,650.60 at Comex close. High was
$1,676.65, low $1,630.89. Hard for me to judge the 5 day chart and say whether
the rise has ended or not, but plain enough is mighty resistance beginning at
$1,700 and rising above like the Great Wall of China. This can go on for weeks
with great frustration, trading sideways, rallying, fading, rallying again.
Y'all need great patience, and 'twill pay off. The SILVER PRICE out-did GOLD by
rising 5.25% (157c) to close Comex at 3149.7c. High, however, was 3347c, so
SILVER gave back about half its gains. Stiffest resistance awaits silver at
3400c, then 3600c. One complication of waiting for lower SILVER PRICES is what
happened in 2008. While the paper price dropped to 880c, the price for physicals
never dropped below 1200c. Shortages emerged, and people just asked higher and
higher premiums for whatever silver they had. Still, I have to wait for lower
prices. I understand this will win me no bonus points with the silver and gold
cheerleaders, but the chart says what it says. Do not misunderstand anything I
have written above. You are watching a major correction in silver and gold, but
not by any means the end of the bull market. From whatever low they eventually
make, they will rocket back to double, triple, or quadruple that low. That's why
this correction offers you such a rare opportunity to shoot fish in a rain
barrel. About palladium: it broke about $700 then fell to $605. Today it closed
at $648. Platinum broke about $1750, and yesterday's low was $1,475.30. Today it
recovered to $1,558. None of this is helpful to silver and gold. Stocks staged a
love fest around the globe yesterday and today, which only demonstrates that the
public is even brain-deader and brain-washeder than ever I suspected. Looking
for that story that affected the market last night, I went home and got on the
internet. Y'all know what the cause of all this stock-buying euphoria was? A
bucket. Yep, a bucket. The bucket is a dodge the banks and central banks and
government -- working together in one vast, loving, and larcenous partnership --
use to solve the crisis after the banks blow up a bubble, and to shuck the loss
off on taxpayers. Think of the early 1990s. Savings and Loans went on a lending
spree, bubbled the real estate market, then it crashed and what on earth can we
do with all these rotten loans? A bucket. The Resolution Trust Corporation. The
government/banks create a bucket (a.k.a. Special Purpose Vehicle, Sublime
Lending "Facility", or other hogwash) into which they can throw all the bubble's
rotting offal, the toxic assets worth 10c on the dollar that the banks must
carry on their balance sheets. They throw all the toxic assets into the bucket
to buy time, then work them off little by little, usually picking the taxpayers'
pockets in the process. Presto! The banks can sell their offal at 75c or 100c on
the dollar to the bucket and clean up their balance sheets and the Taxpayers can
pay. Normally this is done with such pompous sleight of hand, propaganda, and
posturing that even the people being cheated -- the entire commonwealth -- think
the banks are doing 'em a favor. So last night I was surprised to learn that all
the hoo-hoo in stocks apparently had been built on limp rumors of a bucket for
the European sovereign debt crisis. Friends, this is thin gruel, because this
mess has become too big for that bucket. Besides, it's full of holes. I reckon
they'll find out in a few days, and when the news of the bucket (as opposed to
the rumor) hits the electrons, stocks will suddenly, rapidly, bloodily re-align
themselves with reality. Dow today rose 1.33% or 146.83 points to close at
11,190.69. S&P500 added 12.43 points (1.07%) to close 1,175.38. Considering the
high came at 11,369, the Dow's grip wasn't too tight. Lots of resistance at
11,300-11,400. Stocks -- the e. coli in your Investment Shopping Basket. On 27
September 1964 the Warren Commission issued its report on John F. Kennedy's
assassination a year earlier. The report concluded that Lee Harvey Oswald had
acted alone, then sealed all the documents for 50 years. Right. The Tooth Fairy
had intended to join him, but she backed out at the last minute 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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