Gold Price Close Today : 1,685.10 Gold Price Close 7-Oct : 1,634.50 Change :
50.60 or 3.1% Silver Price Close Today : 3214 Silver Price Close 7-Oct : 3095.8
Change : 118.20 or 3.8% Gold Silver Ratio Today : 52.430 Gold Silver Ratio 7-Oct
: 52.797 Change : -0.37 or -0.7% Silver Gold Ratio : 0.01907 Silver Gold Ratio
7-Oct : 0.01894 Change : 0.00013 or 0.7% Dow in Gold Dollars : $ 142.85 Dow in
Gold Dollars 7-Oct : $ 140.42 Change : $ 2.42 or 1.7% Dow in Gold Ounces : 6.910
Dow in Gold Ounces 7-Oct : 6.793 Change : 0.12 or 1.7% Dow in Silver Ounces :
362.31 Dow in Silver Ounces 7-Oct : 358.65 Change : 3.65 or 1.0% Dow Industrial
: 11,644.49 Dow Industrial 7-Oct : 11,103.12 Change : 541.37 or 4.9% S&P 500 :
1,224.58 S&P 500 7-Oct : 1,155.46 Change : 69.12 or 6.0% US Dollar Index :
76.607 US Dollar Index 7-Oct : 78.792 Change : -2.185 or -2.8% Platinum Price
Close Today : 1,555.00 Platinum Price Close 7-Oct : 1,496.60 Change : 58.40 or
3.9% Palladium Price Close Today : 626.00 Palladium Price Close 7-Oct : 590.70
Change : 35.30 or 6.0% Turns out I was completely wrong last week when I
expected the GOLD PRICE and the SILVER PRICE to drop. Dollar dropped instead,
while GOLD , SILVER , and stocks all rose. PALLADIUM was the week's biggest
gainer, up 6%. Stocks are marching along to retirement nirvana, hurrah, hurrah.
The GOLD PRICE bewilders me. Look at the weekly chart, and it has done no more
than sketch out a range bounded by $1655 and $1685. Nothing plain about the
longer term chart, either. Might be a flat topped rising triangle, which is
bullish, but then again, might be a rising wedge, which is bearish. Add another
complication: the bigg pattern from mid-August thru September forms a falling
wedge, which is bullish. Although GOLD is rallying, I expect it to hit the
bottom of that peaking area from $1,725 to $1,800 and knock itself out. The two
year weekly chart screams that gold will drop further. But when gold hits the
150 dma again (now $1,596) I reckon I'll have to buy some. Waiting is making me
awfully nervous. The SILVER PRICE , O, the Silver Price! The weekly chart looks
like a head and shoulders top. Monday's left shoulder topped at 3250c,
Wednesday's head at 3300c, and today's right shoulder at 3250c. Neckline holds
it all up at 3130c. Y'all don't start throwing rocks at me, I'm just reporting
what I see. On the other hand, the long term (10 year) weekly chart teaches me
that the decline was caught by the uptrend line from the 2008 bottom. How much
lower, then, can you expect it to fall? Maybe not much. Top of the range is
3300c, bottom 3130c. Break either way should run like a scalded dog. I will buy
on any break below 3100c. There's always a danger that you will "talk your
position" and convince yourself you're right, all the while ignoring the reasons
you're wrong. The 57.5 GOLD SILVER RATIO , which is my target fro swapping back
into silver from gold, lies about at the 62% correction of the fall that began
in February 2010. I think we can get it. I hope I haven't missed it already.
Stocks are cooking, reached their highest close today since late August. Dow
rose 166.36 (1.45%) to 11,644.59 accompanied by the S&P500 up 1.95% (13.64) to
1,224.58. Before you call your brother-in-law and rub it in how smart you are
for staying in stocks, observe that stocks, although above their 20 day moving
average (11,144) and 50 DMA (11,201), have not quite yet topped their August
intraday high at 11,716.84. An optimist might look at the Dow's chart and say,
"It's about to break through 11,700 resistance!" A realist might look at it and
say, "Let the rejoicing await a close above 11,716 and the previous low at
11,863. Let the Dow prove this is not merely a consolidation, but really a
rally. And don't forget that Dow Theory down turn signal a few weeks ago. Wait!
And what about that MACD that's drawing so close to overbought?" Let's wait till
Monday and see how well the Dow handles this 11,600- 11,700 level. Stocks --
they put the Boo! in boomerang. US DOLLAR INDEX keeps ratcheting down, giving
back the gains from the September rally. Today ended at 76.607, down 0.5% or
38.9 basis points. Before its correction ends, it might touch the 200 DMA at
75.94. Strange as it sounds coming from me, I still expect further rallying from
the dollar. Space aliens landed in Brussels today and pledged to bail out the
European banks. On the strength of that promise the euro rose to 1.3877, up
0.73%, and has nearly reached its 50 DMA (1.3936 -- 20 dma at 1.3548). Could
rally clean up to 1.42, where its sorrows commenced. But I wouldn't buy euros
until I see the color of those space aliens' money. (Don't bother telling me I'm
not being serious. Mercy, I'm as serious as all those goofs out there buying
euros when the banking system is as broke as the Ten Commandments. What are they
counting on to bail them out if not space aliens or something equally likely?)
Japanese Yen closed today at 129.54c/Y100 (Y77.2/$1). Yen is sliding down the
descending top boundary line of a triangle, but not enough that you could call
it anything more than a trading range. Here are a few Peace of Mind Steps y'all
can take in the face of today's insane uncertainties. ** Get three months'
living expenses out of the bank, in cash, smallish bills, and store them in a
safe place with 24 hour access. Don't bother calling me crazy, I've been
maligned by professionals, so it doesn't bother me. Banks and your government
are the most lethal and ruthless combination running loose today. Remember 1985
when banks and SandLs closed in Maryland and Ohio? Government simply closed 'em,
no warning, and if your kids went hunger, tough luck. They will do anything --
including shoot their mothers in front of a cop -- to save their system. Close
banks, limit withdrawals ("Oh, sorry you can't live on $300 a week. Eat dirt."),
anything. Just give yourself enough cushion to protect your family. ** You and
your wife ask yourself: If the place we are living suddenly became Beirut, or
Sirte, or Baghdad, where would we go? Remember, a refugee is somebody who is
trudging someplace else to die. ** Ask yourselves, "If I couldn't shop at the
grocery for a week, what would we eat?" Pick up a couple of 25 lb. bags of rice
and dried beans. Ask also what water you would drink -- clean water. ** Inquire
of the mirror, How would we defend ourselves if there were no police? If you've
never taken a pistol combat course,do that. And buy some ammunition -- it seldom
goes stale. Remember, a man with a full magazine sleeps more soundly. Y'all
enjoy your weekend! Argentum et aurum comparanda sunt -- -- Silver and gold 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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