Gold Price Close Today : 1745.50 Change : 32.10 or 1.9% Silver Price Close
Today : 3273.1 Change : 87.8 cents or 2.8% Gold Silver Ratio Today : 53.329
Change : -0.462 or -0.9% Silver Gold Ratio Today : 0.01875 Change : 0.000161 or
0.9% Platinum Price Close Today : 1558.30 Change : 21.30 or 1.4% Palladium Price
Close Today : 614.10 Change : 25.35 or 4.3% S&P 500 : 1,246.96 Change : 51.77 or
4.3% Dow In GOLD$ : $142.66 Change : $ 3.25 or 2.3% Dow in GOLD oz : 6.901
Change : 0.157 or 2.3% Dow in SILVER oz : 368.02 Change : 5.24 or 1.4% Dow
Industrial : 12,045.68 Change : 490.05 or 4.2% US Dollar Index : 78.35 Change :
-0.653 or -0.8% The GOLD PRICE jumped $32.10 today (1.9%), clearing at a single
bound the troublesome $1,720 and $1,740 resistance. Alas, it couldn't get
through $1,750, as the $1,749.56 high proved. Closed at $1,745.50 The GOLD PRICE
showed a straight up single move with the coinciding with the central bank
announcement but then it traded flat the rest of the day. Hmmmm. GOLD has poked
its head through its overhead trendline, but not by much. Odds say it will rise.
Stoutest resistance remains at $1,775 and $1,800. The SILVER PRICE also spurted
up on Blarney, bursting thru 3220c resistance, and adding 87.8c (2.8%) to close
at 3273.10. That was near the 3293c high. The SILVER PRICE has now once again
come to the 3300c barrier, where we have so often met before. SILVER did not
quite break through its 20 DMA (3330c), and remains in a large even-sided
triangle that has been building since the high mid-August and the low
end-September. It's traded all the way into the nose, so must resolve up or down
soon. If silver and gold continue to advance -- that is, if today's jumps were
something more than a reaction to the central banks' Blarney -- then I will
throw in the towel and start buying heavily. Silver will break out to the upside
if it closes above 3300c then keeps on advancing. Gold still must clear $1,800
to convince me finally. The really fun part of commenting about markets is the
never-failing threat of a Government Surprise Party sprung overnight, changing
the whole outlook and leaving you looking like a natural born fool. Something
stinks here like that wild-caught salmon your wife bought at the grocery store
that then fell out of her grocery bag under your car seat just before you left
town in July for three weeks in the other car. Let's keep this as simple as
possible. The Establishment, whose agents are central bankers and governments,
has only two weapons against financial crisis: BLARNEY and LIQUIDITY. Blarney is
trotting out Warren Buffett or some obscure economist with Coke-bottle bottom
glasses or some president or politician to make a statement that the economy is
really basically sound, so all you victims really don't need to flee out of the
trap after all. Liquidity is printing more money, since after all a "financial
crisis" or "panic" is a panic for money. More money, less panic. Both the
Blarney and Liquidity cannons aim to win the same hill: TIME. Buy time to let
the panic settle down. This morning all the world's important central banks --
the US Federal Reserve, Bank of Canada, Bank of England, Bank of Japan, Swiss
National Bank, and European central bank -- announced a big co-ordinated
intervention to increase liquidity by lowering swap rates. (Swaps are central
bank transactions where one bank swaps for another currency with a guaranty to
swap back in the future.) Since the European banks have been starved for
liquidity and need dollars, the ECB needs to borrow them from the Fed. Today's
action makes it 50 basis points cheaper (0.5%) to borrow dollars. Get this much
straight: This does not by any stretch of the imagination solve the euro crisis,
it only mollifies the liquidity fever. Now think further: long term, how will
this act, increasing liquidity a.k.a. printing more money, affect (1) the value
of currencies, (2) the value of stocks, and (3) the value of silver and gold?
(1) inflation will drive down currency values. (2) inflation will increase
economic uncertainty and management perplexity while it pounds capital down the
rat-hole of mal-investment. Twill drive the value of stocks down, or at least,
they will not gain value faster than the inflation can pilfer it. (3) Inflation
is the chief and only driver of silver and gold bull markets, so more inflation
means higher silver and gold prices. Short term, they throw these government
surprise parties and send markets screaming in the opposite direction for a few
days, then sobriety takes over again and the gains disappear. I'm not sure where
this leaves in the next 3 months with silver and gold. They may resume their
correction for one more push down, or we may have seen the lows last week. I
bought some today, just on the chance that tomorrow gold climbs over $1,750,
calling everybody in the world to buy. US DOLLAR INDEX today fell 65.3 basis
points to 78.354 (down 0.84%). No surprise there, when the biggest central banks
in the world announce they are going to cheapen the dollar. Euro rose 0.98% to
1.3441, yen rose 0.48% to 128.92c/Y100 (Y77.57/$1). Surprise! This move didn't
wreck the dollar. It brought it back to the uptrend line, but only poking thru
it a little. Needs to hold 78. STOCKS rose in a frenzy. Dow gained 490.05
(4.24%), a huge move, to close 12,045.68. S&P 500 rose 512.77 (4.33%) to
1,246.96. That big jump took stocks thru their 50 and 200 day moving averages
(11,553.37 and 11,949) and they closed near the high of the day. Lots of energy,
expended, don't you think, only to bring them back to the established downtrend
line? Yep, that's right, I NEVER say anything "fair" about stocks, because I am
persuaded that they are a trap, cocked and loaded to take away your money. If I
am wrong, I am at least sincerely wrong. I invite you not to ponder, as an idea
too hideous for minds of good will, that this entire financial crisis, from 2006
until now, has been managed to force the tortured people of the world to beg for
a cure, a supranational government that will end the economic pain. I'm not sure
the Establishment would precipitate that, but they will surely turn such events
to their centralizing advantage. Now y'all know everything I know, but that
ain't much. After all, I'm still just a natural born fool from Tennessee who
believes that cornbread and greens with integrity tastes better than cake won as
a tapeworm, and that borrowing money and blowing it is not as wise as producing
something and creating wealth and -- perish the thought -- living within your
means. Clearly, I am destined for extinction. Well, either that, or the other
side is, but without the Blarney and Liquidity cannons how can I win? I have
only reason and common sense and the eternal truth to work with. What's that
against Blarney, Liquidity, Central Banks, and USA Today? 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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