Gold Price Close Today : 1651.50 Change : 16.40 or 1.0% Silver Price Close
Today : 31.620 Change : 0.447 cents or 1.4% Gold Silver Ratio Today : 52.23
Change : -0.223 or -0.4% Silver Gold Ratio Today : 0.01915 Change : 0.000081 or
0.4% Platinum Price Close Today : 1566.00 Change : 22.80 or 1.5% Palladium Price
Close Today : 641.55 Change : 1.55 or 0.2% S&P 500 : 1,229.05 Change : -25.14 or
-2.0% Dow In GOLD$ : $146.53 Change : $ (4.07) or -2.7% Dow in GOLD oz : 7.088
Change : -0.197 or -2.7% Dow in SILVER oz : 370.23 Change : -11.95 or -3.1% Dow
Industrial : 11,706.62 Change : -207.00 or -1.7% US Dollar Index : 76.04 Change
: -0.474 or -0.6% I reckon that WAS an upside down head and shoulders on the
GOLD PRICE chart. Once gold cleared that $1,660 neckline about 10:00 a.m.
(taking off with a runaway gap) it never even paused until $1,685, took a deep
breath, then leapt clean to $1,705. Friends, by the time the janitor pulled out
the broom on Comex, the GOLD PRICE had added $48.10 (2.9%) and stood at
$1,699.60. In the aftermarket it's shoving against $1,705 resistance. Y'all see
how those government surprise parties can mess with markets? Gold was building a
rally anyway, but that goose from the dithering Eurocrats really put power
behind it. Measured target for this rise is $1,715, but as long as that European
party is raging, gold can keep on rising. $1,725 stands next resistance, then
$1,750, then the big heart-stopper at $1,800. I still expect we will see another
decline for a final kiss goodbye to the September lows (not that the price will
reach that far necessarily, only that a double bottom will appear), but for
right now y'all don't stand in gold's way, unless y'all want everybody to think
you've left the room when you turn sideways. One last thing: y'all watch that
50DMA, now at $1,742.82. The GOLD PRICE might stop there. Also keep an eye on
$1,775, where gold collapsed in September. Gold might reach that point, too. The
SILVER PRICE was pleased to slap the jaws of all its detractors today. The Comex
janitor found silver up 141.4 cents or 4.5% (if I'm lying, I'm dying) to
3303.4c. Somebody who had BADLY missed the message was selling SILVER about 7:00
a.m. and sold down all the way down to 3139c at 10:00 a.m. Quicker than a
lightning flash, silver gapped up over 3160c and shot straight to 3230c. It
jogged there a little, then shot another 100c straight up to 3320c. In the
aftermarket its trading 3317.5c. The SILVER PRICE is targetting 3400c. Really
would not be a good sign for silver to fall much below 3300c, if it expects to
keep rising. 3350c is the next big barrier. This was a great move today, but
only brings silver back to resistance at the top of its 5 week trading range.
Must move higher tomorrow to confirm its upward ambitions. Today you are
witnessing why you must gird up your loins, swallow hard, and buy SILVER and
GOLD on sharp declines -- because the sharp rises will follow. It's a bull
market. It has an indefatigable upward bias. Yesterday I omitted the other point
I wanted to make from Michael Lewis' little book, Boomerang. He interviewed
Texas hedge fund manager Kyle Bass several years ago. Bass had called the
mortgage collapse in the US and made boatloads with Credit Default Swaps --
think, "bets against mortgage backed securities." But Bass looked at how the
2008 US crisis was handled, and began to realize that a new phase was unfolding:
governments were back-stopping the banks. And it has happened in Europe. Of
course, it's impossible for them to do that, because the banks' bad assets -- in
sovereign debts, derivatives, MBS, you name it -- are so bottomlessly vast no
country could pay them. Yet, that's what they're trying to do. This guarantees a
massive financial crisis, perhaps a collapse. When Lewis asked Bass what he
would tell his mother to buy under these circumstances, Bass shot back, "Guns
and gold." Lewis gave the equivalent of a nervous giggle over that, intensely
uncomfortable with that politically incorrect answer. Yet it was coming from a
man who had a 100% track record. Frankly, I get tired sometimes -- tired of
pointing out the obvious. I reckon "stating the obvious" is my only talent, and
in the land of the blind the one- eyed man is king. Lately I've been remembering
that I have no right to get tired, the world just is what it is, and people
delude themselves as they will, afraid to look the truth in the eyes. The ones
who have ears will hear, and the rest will never hear anything. The music from
Washington and Wall Street will keep drowning everything else out, until the
music stops. The deal in Europe is falling apart, and now the Eurocrats have no
plan to present at the planned meeting on Wednesday. Bankers don't want to take
a 60% haircut on Greek debt, Germans don't want to bail them out. Greed and
pride have driven the banks crazy, since they are being offered 40c on the
dollar for debt that is realistically worth zero. But I reckon that's why they
call them "banks." Bottom line for us: whether they banks take 40% or 60%, WHERE
WILL THE MONEY COME FROM? The ECB will print it, and never mind the transmission
mechanism. And more inflation will beget more inflation, and silver and gold
will thrive. May take a few more months to materialize into a renewed rally, but
'twill happen -- y'all take the word of a one-eyed, natural born fool from
Tennessee on that. Fears out of Europe today sent stocks down, the dollar and
yen up, and goosed gold and silver strongly. The Dow lost 207 points (1.74%),
2/3 of the previous two days' gains, to close at 11,706.62. S&P500 lost 25.14 or
2% to close at 1,229.05. Dow's five day chart peaked a bit above 11,900
yesterday, rolled over, and fell out of bed. If 11,700 cannot hold, then 'twill
hit 11,400 quicker'n a frog can tongue a fly out of the air. The Dow has now
reached its 200 DMA (11,967), a frequent barrier to bear market rallies. The
pattern formed since August, when the Dow fell from the Jaws Of Death, has been
ANOTHER broadening or megaphone pattern. Megaphones are burning up buying power,
a market wrestling and writhing before it gives up. Stocks -- a GUARANTEE for
your retirement, but y'all had better ask exactly WHAT they guarantee. US DOLLAR
INDEX rose 9.4 basis points (0.12%) to 76.122. You can bet your last sovereign
that the NGM from the US and all over the world, along with the Central Bank
Yellow Running Dogs, are working like threshing machines trying to keep that
dollar from running away. Euro closed 139.02, down 0.19%. Yen made a new all
time intraday high at 132.04c/(Y75.73= $1), closed 131.47, and is trying to take
off. 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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