Unless the Gold Price Batters Through that $1,620 Ceiling and the Silver Price Through 3100c, Lower Prices Lay in Store

Gold Price Close Today : 1615.50 Change : (0.60) or 0.0% Silver Price Close
Today : 30.472 Change : 0.388 or 1.3% Gold Silver Ratio Today : 53.02 Change :
-0.704 or -1.3% Silver Gold Ratio Today : 0.01886 Change : 0.000247 or 1.3%
Platinum Price Close Today : 1528.00 Change : -3.00 or -0.2% Palladium Price
Close Today : 623.00 Change : 0.00 or 0.0% S&P 500 : 1,160.40 Change : 9.34 or
0.8% Dow In GOLD$ : $142.73 Change : $ 1.90 or 1.3% Dow in GOLD oz : 6.904
Change : 0.092 or 1.3% Dow in SILVER oz : 366.04 Change : 0.04 or 0.0% Dow
Industrial : 11,153.98 Change : 143.08 or 1.3% US Dollar Index : 77.93 Change :
0.078 or 0.1% Metals put in a mixed close day. The GOLD PRICE gained a
microscopic 60 cents to close Comex at $1,615.50 while the SILVER PRICE gained
38.8c to close 3047.2c, but didn't break through 3100c resistance or even 3050c,
although in the aftermarket it has climbed to 3072.5c. Ambivalence, ambivalence,
all is ambivalence! The SILVER PRICE has established support at 2900c, but
cannot climb through 3100c. The GOLD PRICE has some sort of floor at 1580, but
cannot break through the $1,620 ceiling. All this has unfolded against a
background of lower highs and lower lows, i.e., a downtrend. Thus we must
conclude that unless the GOLD PRICE batters through that $1,620 ceiling and the
SILVER PRICE through 3100c, lower prices lay in store. However I caution that
gold and silver could still rally up to the bottom of that consolidation area,
about $1,750, seem strong as a garlic milkshake, then step into an elevator
shaft. Be patient, be patient. Buy some if you just can't stand the wait, but be
patient. What doth one say about a market that rises to a high of 11,269, then
gives up 40% of that 259 point gain to close at only 11,153.98, up 1.3%? One
sayeth, "The Dow is tapped out." S&P500 rose a feebler 9.34 (0.81%) to close
1,160.40. All this, remember, was riding the crest of the euphoric wave pouring
out of Euroland because the German Bundestag voted today to sell out Germany to
the banks, i.e., back the Bucket for Sovereign Debt a.k.a. euro bailout fund
hung with the cosmically impossible name of European Financial Stability
Facility. Sounds like some place you'd get your oil changed when your Volvo
engine's running too hot. Durned if the eurocrats aren't getting away with
turning the crisis to their advantage and increasing their centralized tyranny!
It is historically ironic that Germany now has all she fought for in two world
wars, but without the bloodshed: the Fourth Reich. I went to school in Germany
and am a great admirer of German culture and civilization, except for the Nazi
aberration. Remember that the German Empire began to be built on the ruins of
Rome with Charlemagne (768-814 a.d.) and was officially founded as the First
Reich with the crowning of Otto I in 962. (Remember that the Franks like
Charlemagne were really Germans who settled in France, so ultimately the French
are really Germans, or the Germans are French, and I'm my own grandpa.) The
First Reich lasted until Francis II abdicated in 1806. The Second Reich came
with the founding of the Prussian empire upon the defeat of the French (those
"other" Germans) in 1871 with Wilhelm I. That Reich ended in 1918 when Wilhelm
II "the Incompetent" abdicated. Then the Nazis came along and, as they always so
skillfully did, co-opted existing symbols while filling them with wholly new
meaning. (Think of the Hakenkreuz or swastika used to replace the Christian
cross.) Anyway, the Nazis proclaimed the Third Reich, and that ended with Hitler
in 1945. Later skilful German statesmen worked to set up a European political
order that would be peaceful and prosperous, but somewhere along the way that
metastasized into the European bureaucracy. Bottom line is, today the Germans
are the lynchpin, not to say the rulers, of the Eurozone. The ancient Reich has
been revived. And in Asia, the Japanese have hegemony in the "Greater East Asia
Co-Prosperity Sphere" they sought to establish by force 1905 - 1945. Ironically
enough, most of the big German and Japanese corporations from those "bad" years
are still around, Mitsubishi, e.g., making cars instead of Zero fighter planes,
Krupp, Siemens, etc. Governments and dictatorships may come and go, but
corporations are forever. The US won the war, while the corporations stole the
peace. Whoa! Sorry, I got clean off point. Back to today's markets. US DOLLAR
INDEX was 77.93 when I began writing this, up only 7.8 basis points, but now is
trading over 78 at 78.028, up 0.23%. SOMEbody (read: Nice Government Men) keeps
slapping the dollar down every time it pokes its uppity head above 78. That
won't last forever, and the dollar will move higher. Poor, pitiful Euro rose a
little today, 0.38%, to 1.3593, ready to begin its next plunge. Yen dropped
0.34% to 130.18c/Y100 (Y76.81/$1). Japanese NGM have still not chastised and
tamed their wayward currency. 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.