Gold Price Close Today : 1669.60 Change : 35.10 or 2.1% Silver Price Close
Today : 31.944 Change : 0.986 or 3.2% Gold Silver Ratio Today : 52.27 Change :
-0.531 or -1.0% Silver Gold Ratio Today : 0.01913 Change : 0.000192 or 1.0%
Platinum Price Close Today : 1520.70 Change : 0.40 or 0.0% Palladium Price Close
Today : 613.75 Change : 0.00 or 0.0% S&P 500 : 1,194.89 Change : 39.43 or 3.4%
Dow In GOLD$ : $141.56 Change : $ 1.15 or 0.8% Dow in GOLD oz : 6.848 Change :
0.056 or 0.8% Dow in SILVER oz : 357.91 Change : -0.74 or -0.2% Dow Industrial :
11,433.18 Change : 330.06 or 3.0% US Dollar Index : 77.53 Change : -1.210 or
-1.5% I can't avoid pointing out that the GOLD PRICE had yet another opportunity
to pierce $1,675 today, and failed for the third time. Generally, third time's
the charm, and if it fails it won't come back. Gold reached its flood tide at
$1,681.57, but closed down $9.90 at $1,659.70. The GOLD PRICE has taken away one
more reason to expect an immediate rally. O, and the SILVER PRICE close today!
Silver rose one cent to close Comex at 3196.3, after a high of 3235c. That 3250c
resistance held firm, and silver blinked. Possible it's building a flat topped
rising triangle, with the flat top at 3250c, because the lows have been higher.
Still, a silver dip under 3150c, not to mention 3100c, will send the SILVER
PRICE tumbling again. It's easy to misunderstand my outlook. I sound very
negative on SILVER and GOLD , but that's a very short term view. I don't think
the European crisis has ended, and on top of that a silver and gold correction
to a 34-month rise is taking place. Yet all that will pass. And what if it drove
silver and gold down another 20%? I don't care, because I am holding for the
triple or quadruple we will see from that low. No, the SILVER and GOLD bull
market has not near about ended. Lots more time and upside left. Don't forget
that. Logically -- mathematically -- the price of US government bonds ought to
drop when the US dollar drops. Lower dollar means investors will demand more
interest to make up for the lower dollar price, and bond prices move the
opposite direction to their interest rates (yields). And as bonds have dropped,
yields have risen. Maybe it's only a blip on the screen as the US dollar
corrects its rally, but still it contradicts the Fed's Operation Twist that aims
to lower long term rates, and the Fed's stated goal of keeping all interest
rates down. Why am I bothering with this? If ever a stampede develops out of US
government debt because the public is repudiating the dollar, it will start this
way, with the US government having to pay higher and higher interest to
compensate for expected inflation and dollar instability. Not saying that's
happening now, just that its possible. The US DOLLAR index with a low at 77.34
today (closed 77.49, down 1.56%) right nearly touched the upper trading channel
line of the channel the dollar broke out of to the upside. This classifies as
that "Final Kiss Good-Bye" I mentioned yesterday. It's a move markets often
make, breaking out to a new high (or low), then trading back to the same
support/resistance that marked the breakout point. Now the dollar might fall a
little lower, maybe to 76.75, or even to the 200 day moving average at 76, but
none of those moves will gainsay the dollar's rally. Y'all will see soon the US
dollar index priced in the 80s. Euro traded sideways, closed 1.36456, up -- get
out your electron microscope -- 0.03%. The Japanese yen continues to torture its
Nice Government Men and exporters by remaining stubbornly high. Closed today
flat, up 0.02% at 130.45c/Y100 (Y76.65/$1). To set up the European bailout, 17
member states needed to agree unanimously. Today the last, Slovakia (population
5,429,763, fewer than Tennessee) voted AGAINST the bailout. The Germans have a
word, "Schadenfreude" that means "gloating at someone's fall." Right now, I am
fighting Schadenfreude over the eurocrats failure to bail out the banks.
Probably, I am not fighting it hard enough. Good chance of that. Yep. Stocks
today bounced off that bottom line of the Jaws of Death top I mentioned
yesterday. Dow fell 16.88 (0.15%) to a 11,416.30 close. S&P flattened, up 0.65
[sic] to 1,195.54. I may not like stocks (and I don't, no more'n y'all like a
copperhead snake) but I try to tear off the top of the chart and read faithfully
what it says. They may rally, but I don't want any part of them. First off, that
little rally shouldn't carry too far, according to overbought/oversold
indicators. But let's say stocks go wild and shoot their biggest bolt and reach
for that 200 dma way in the sky above at 11,968.90 -- what then? Still don't
amount to a hill of beans, and they're in a bear market to boot. On the other
hand, stocks are a fine candidate to fail right here and fall more. Wall Street
2011 -- what 250,000 Confederate soldiers died to prevent. 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. 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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