Gold Price Close Today : 1724.20 Change : (22.00) or -1.3% Silver Price Close
Today : 3433.7 Change : 93.3 cents or -2.6% Gold Silver Ratio Today : 50.21
Change : 0.705 or 1.4% Silver Gold Ratio Today : 0.01991 Change : -0.000283 or
-1.4% Platinum Price Close Today : 1606.10 Change : -39.40 or -2.4% Palladium
Price Close Today : 649.00 Change : -14.85 or -2.2% S&P 500 : 1,253.31 Change :
-31.78 or -2.5% Dow In GOLD$ : $143.33 Change : $ (1.45) or -1.0% Dow in GOLD oz
: 6.934 Change : -0.070 or -1.0% Dow in SILVER oz : 348.17 Change : 1.38 or 0.4%
Dow Industrial : 11,955.01 Change : -276.10 or -2.3% US Dollar Index : 76.55
Change : 1.454 or 1.9% GOLD and SILVER are the currency alternatives --
competitors, if you will -- to the euro, yen, and dollar. Thus when the dollar
rallies, you can expect silver and gold to take body blows. Today they did. THE
GOLD PRICE dropped $22 (1.3%) to turn off the Comex lights at $1,724.20. Big
drop had already happened on the other side of the world time the globe's
turning brought midnight Sunday/Monday to the Eastern Time zone. That's the
great thing about government surprise parties, no way to decline the invitation.
Most of the day GOLD traded from $1,725 to $1,712, although the low came before
New York opened at $1,704.60. Closing under that $1,725 support offered no
encouragement to gold bugs, and will likely knock prices again tomorrow. $1,705
is the support to watch. That marks the upper boundary line of gold's trading
from the end-September collapse until last week's upside breakdown. Falling
through that mark opens a trapdoor for the GOLD PRICE with a $1,650 basement.
$1,605 is possible, and home to the 150 day moving average. The SILVER PRICE ,
more manic as usual, lost 2.6% today, 93.3c, to close Comex at 3433.70, beneath
3450c support. Likely target is 3200-ish, about where 'twill meet the rising
trend line. If it falls thru that, silver holders will be writhing in pain.
BOTTOM LINE: Bull market is alive and well, just undergoing a correction. Y'all
hang on -- don't let that bull shake you off! I'm going to share a little secret
with y'all. I've been working on a book. For 15 years. No, not about silver and
gold, hardly mentions them. Rather, it's the tale of moving with my family to
a farm waaayout in the country, so far out you have to order sunlight from Sears
and Roebuck. It exposes all, from colossal mistakes to miniscule successes. I'll
tell you where the dead animals are buried, and who (probably) killed them.
You'll learn how we got to 27 dogs at one point, how we fell into the pig
business, and how not to herd sheep (Hint: gotta have a Border Collie). You'll
hear about the joys -- Bodacious Hoedowns and Agrarian Challenges -- and the
sorrows -- how many chickens can a skunk kill? You will also no doubt find it
even easier to laugh at me than I do to laugh at myself, and you will meet my
whole family and others for miles around. Stocks stir my soul to poetry: Under
water everywhere, and all th'indices did shrink! Underwater everywhere, and
every stock did stink! Last Thursday I wrote that you should look around and fix
the sight in you mind, because for stocks that was as good as it gets. Now y'all
see why I said that. Today the Dow closed at 11,955.01 and lost 2.26% or 276.1
points, all but 85.97 points of what it gained in the last two days. It lost
76.25% of the last two days gains. S&P500 lost 31.78 or 2.47% today. Now all
those who bought the euro "fix" are beginning to sober up, rub their eyes, and
wonder what in the WORLD they were thinking to buy stocks like that? Now I bet
y'all understand why they serve free drinks in casinos. I was wondering when the
Nice Government Men in Japan were going to act to save their export addicted
economy, and they did this morning. I will forbear the obvious martial arts and
samurai and ninja references, and observe merely that they slapped the yen
winded. It dropped to 127.92 c/Y100 (Y78.17/$1, down 3.02% from Friday. Since it
was a government surprise party, they threw it over the weekend for the rest of
us) so that it all happened at once and beat the longs senseless. 'Twill be a
while before they go long yen again. Chart damage will last a while, too. Yet
the Japanese only set the stage for more trouble down the road, since they did
not announce, like the pragmatic Swiss, that they would not tolerate the yen
over such and such a rate. Thus they again have to make another surprise raid on
their own currency. Central banking is NOT the road to currency stability.
Euro's day in the sun is over, too. Japanese move today sent money screaming
into dollars for safety, so the Euro gapped down -- largely -- below its 200 DMA
(1.40.86) then fell to the 50 DMA (1.3842) for good measure, wiping out all the
last week's gains. Closed at 1.3852, down 2.1%. And who was the gainer in all
this, save the US dollar, the currency everyone loves to hate but buys anyway.
Dollar bounded up off 75 to end the day up 145.4 basis points (1.87%) at 76.551,
leaving the last two days behind as a spike bottom and suspected turnaround --
as suspect as a cat with yellow feathers on his chin when your canary goes
missing. For a while at least, the dollar will rally. Until the next crisis,
which might be two days or two weeks or two months or two minutes, but surely
will come. Today will be the last day I will send a commentary until 8 November.
I'll miss y'all, but I have to attend a timber framing class. 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 bubble has burst, primary trend down. 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.
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