Gold Price Close Today : 1664.20 Change : (48.60) or -2.8% Silver Price Close
Today : 3093.50 Change : 123.80 cents or -3.8% Gold Silver Ratio Today : 53.797
Change : 0.559 or 1.1% Silver Gold Ratio Today : 0.01859 Change : -0.000195 or
-1.0% Platinum Price Close Today : 1486.70 Change : -27.05 or -1.8% Palladium
Price Close Today : 659.90 Change : -24.05 or -3.5% S&P 500 : 1,236.47 Change :
-18.72 or -1.5% Dow In GOLD$ : $149.32 Change : $ 2.29 or 1.6% Dow in GOLD oz :
7.224 Change : 0.111 or 1.6% Dow in SILVER oz : 388.60 Change : 9.89 or 2.6% Dow
Industrial : 12,021.39 Change : -162.87 or -1.3% US Dollar Index : 79.58 Change
: 0.948 or 1.2% The GOLD PRICE dropped clean through its milestone 150 day
moving average (now $1,664) when it struck bottom at $1,657.32. Here's a catchy
footnote: during the life of this bull market, you could hardly have gone wrong,
even for a short time, blindly buying gold at its 150 DMA. Only on one occasion
-- 2008 -- did it stay below the 150 DMA for enough time to scare you, and even
then it came back. What about other destinations? The 200 DMA stands at $1,613,
and the last low at $1,535. Everyone who called today asked, "Will it drop
farther?" Might as well flip a coin as ask me. That 150 DMA is a place I like to
buy gold. I will buy more at the 200 DMA, and I will be looking around to sell
grandchildren if it reaches $1,535. The SILVER PRICE broke 3150c support and
fell all the way to 3086c, a little higher than the November low (3069c). I like
to look at the worst possible outcome whenever the roof appears to be caving in.
If silver fell the height of the even-sided triangle that it has sketched out,
it would fall to about 1750c. Not impossible, but not likely. That flash low at
2615c in late September offers another target, as does 2000c below that. Before
y'all start looking for a rope to lynch me with, let me remind y'all that the
SILVER PRICE is VOLATILE, way more volatile than the GOLD PRICE . Always is, and
the scary side of that appears when silver corrects. The side you like, the
outperform-gold-four-to-one side, comes when silver rallies. You don't get one
without the other. SILVER and GOLD have just fallen out of even sided triangle
formations. I would buy gold because it's at the 150 DMA, as I mentioned above.
Silver, on the other hand, has fallen below its 300 day moving average. In this
bull market, if you had done nothing brighter than merely buying silver whenever
it sank below its 300 DMA, you would now be sitting on a pile of cheap silver.
Only in 2008 did silver stay below its 300 DMA for long, and then only for about
8 months. Yes, most everybody who now owns silver or gold is puking in his
wastebasket today, with visions of having to buy a hurdy-gurdy and monkey to
make a living, but wait. Exactly when they are all sticking their heads in the
wastebasket is the time we want to be buying. Or do y'all think that over the
weekend Ben the Bernancubus and all the other central bank heads suddenly got
religion and decided they weren't going to gut the public anymore? They are
caught in their own trap. Either they inflate, or they die. Y'all know as well
as I do which they'll keep on choosing. Another Euro-bobble, as the eurocrats
failed again to enact any substantial solution to their bank solvency crisis.
They are, however, tightening the power stranglehold on member countries and
centralizing power like a drunk ordering highballs at a free bar. The outcome
was a spectacular dollar rally. US dollar burst through 79 and is now trading at
79.58, up 1.22% or 94.8 basis points. The dollar's opposite numbers, of course,
tumbled. Euro gapped down and fell to the October low (131.64). Ended at 1.3182.
If the euro cannot check its fall here, it will tumble to 1.2500 to 1.2000. Yen
fared somewhat better, but also gapped down. Remains in the 4-1/2 month range.
Closed 128.33c/Y100 (Y77.92/$1), down 0.4%. Euro's greatest enemy now is
gravity. Back away from the US dollar chart and look. It has now nearly reached
the 79.84 early October high, and the 79.70 November high. This makes the
dollar's THIRD time to knock at that 79.80 door, so the outcome won't be
indifferent. Either it will slice through that 79.80 resistance like the Golden
Horde of Mongols slicing through Eurasia, or it will fail and fall like your
reading glasses out of your shirt pocket when you leaned over the rail to look
down off the Empire State Building. I'm laying my bet on the dollar rising,
because the Eurocrats' stubborn clinging to their unblemished fecklessness may
be, at last, spooking the market into a REAL panic, just like 2008. When that
happens, everybody will drop everything and run to the dollar for salvation.
Boy. Will they ever get THAT wrong. I see reports that European commercial and
central banks may be selling gold to raise dollars. May be, I have no way of
checking that and they aren't about to tell me. But in a panic folks always rush
into whatever the majority perceive as the safest instrument. Right now that's
the dollar, so you have to expect silver and gold to suffer in a panicked dollar
rally. Could be worse -- they could be stocks. Stocks have rolled over on their
belly again, and are about to roll off the wall. Dow today barely held on at
12,000, closing down 1.34% (162.87) at 12,021.39. S&P500 lost 1.64% (18.72) to
1,236.47. Here's a guess. The Dow's decline began off the May top, fell to
11,950, rallied back to 12,700, then fell to 10,400 in October. That last was
the big tough leg (so far), and all the drama since October has been nothing
more than a correction of that fall. Correction ended at 12,200, where it
failed. Now stocks have in front of them a "journey", as the pompous like to
intone. Their journey will carry them below that October low at 10,400, and on
down into the bowels of the earth. How could any enterprise prosper in the
government-caused regulatory and financial anarchy that terrorizes markets
today? That brings us to silver and gold, whose plugs were yanked today. Gold
fell $48.60 (2.8%) to 1,664.20 on Comex. Silver fell 3.8% (123.8c) to 3093.5c.
I'm not trying to cover myself, but remember I did warn y'all that metals could
break up OR down out of their even-sided chart formations. Down it was. Y'all
will find this hard to believe coming from a Tennessean, but 3 years ago my son
and I went to New Hampshire, shopping for a Scotch Highland bull. We found Bill
and Kathy Baker, who for over 30 years had been line breeding and ruthlessly
culling for perfect animals. When I saw their cattle, they literally took my
breath away. More than that, down the road Kathy has a shop where she makes
wreaths. No, no, not those cheesy plastic things, but REAL wreaths out of dried
flowers or fresh balsam. Everything they use is locally grown or gathered, they
never use any additives or chemicals, and Kathy and her crew make the most
exquisite Christmas wreaths you have ever seen, and ship them all over the US.
They are all made to order. I think Kathy sells out every year, but she probably
still has time to make a few more wreaths. You'll find them at www.cubemtn.com.
On 12 December 1946 a United Nations committee voted to accept a six-bloc tract
in Manhattan to be the site of UN headquarters. The land was a gift from John D
Rockefeller, Jr. That was sure-enough disinterested and public spirited, wasn't
it? On 12 December 1862 came the Battle of Fredericksburg, Virginia where Union
General Ambrose Burnside smashed regiment after regiment against entrenched
Confederates behind stone walls atop Marye's heights. Burnside took 12,653
casualties to Lee's 5,377, and shortly had to look for a new job. The battle
lasted from 11 December to 15 December, and was probably the most lopsided
engagement of the war. The battle was a tragic monument to what one dedicated
man can do with stupidity AND professional military training. 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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