Gold Price Close Today : 1,595.60 Gold Price Close 9-Dec : 1,712.80 Change :
-117.20 or -6.8% Silver Price Close Today : 2961.5 Silver Price Close 9-Dec :
3217.3 Change : -255.80 or -8.0% Gold Silver Ratio Today : 53.878 Gold Silver
Ratio 9-Dec : 53.237 Change : 0.64 or 1.2% Silver Gold Ratio : 0.01856 Silver
Gold Ratio 9-Dec : 0.01878 Change : -0.00022 or -1.2% Dow in Gold Dollars : $
153.66 Dow in Gold Dollars 9-Dec : $ 147.05 Change : $ 6.61 or 4.5% Dow in Gold
Ounces : 7.434 Dow in Gold Ounces 9-Dec : 7.114 Change : 0.32 or 4.5% Dow in
Silver Ounces : 400.50 Dow in Silver Ounces 9-Dec : 378.71 Change : 21.79 or
5.8% Dow Industrial : 11,860.94 Dow Industrial 9-Dec : 12,184.26 Change :
-323.32 or -2.7% S&P 500 : 1,219.26 S&P 500 9-Dec : 1,255.19 Change : -35.93 or
-2.9% US Dollar Index : 80.177 US Dollar Index 9-Dec : 78.632 Change : 1.545 or
2.0% Platinum Price Close Today : 1,417.10 Platinum Price Close 9-Dec : 1,516.30
Change : -99.20 or -6.5% Palladium Price Close Today : 622.30 Palladium Price
Close 9-Dec : 683.20 Change : -60.90 or -8.9% It was as painful a week as the
GOLD PRICE and the SILVER PRICE have seen in a long stretch. Silver lost 8%,
gold lost 6.8%, and lots of folks who were thinking they were going to retire on
their silver and gold profits have trimmed their plans back to working an hour
less every day. Today the GOLD PRICE gold rose $21 to close Comex at $1,595.60.
SILVER gained 39c to close at 2961.5c. These are not significant gains, just
dead cat bounces at the end of the week where people pull out profits so they
can go home to Long Island and drink martinis all weekend with a clear
conscience, unworried about what markets will do on Monday. Gold's low this week
came yesterday at $1,563.90, etching the chart with what appears to be a bottom
at $1,560 -- well, better "support" than "bottom," and overhead resistance at
$1,600. 'Tis always important to fade the crowd's enthusiasm. Right now nobody
can see anything but silver and gold falling forever, extrapolating present
conditions out into the future forever, world without end. Don't make sense.
After this hard a fall, metals will at least stage a little rise in correction.
And I've been cogitating most earnestly where they might go. Searching
thereafter, I came across the moving averages, and staring at those leaves me
thinking that bottoms will come sooner rather than later, although this whole
correction might torture us all the way to June 2012. It all depends on the
European crisis, whether it explodes or not, and I don't know. If it doesn't,
you won't see gold drop below $1,535. Otherwise, it could drop to $1,250, even
$950 where the long term trend line comes in. Y'all want promises, don't you?
Sorry, life doesn't work that way. It breaks my heart, but you marry and then
your wife dies. You have children and lose them. The only alternative to such
terrifying risks is, never to love, never to try, never to risk, and take your
bones to the grave in perfectly safe boredom. Yes, you might lose, but I'd
rather throw the dice once and lose than die wondering what they would have come
up. One last detail: silver has posted at bottom at 2809.8 yesterday. Above is
resistance at 3000c. If it breaks 2800c 'twill drop to 2700c. Possible is 2000c,
maybe lower. Listen! Silver and gold remain in a primary uptrend (bull market)
with another 3 to 10 years to run. Don't be sucked in by Talking Heads promising
the gold bull market has ended. They're wrong. Stick with your silver and gold,
buy more. Scoreboard for the week stores up pain for everyone: stocks down,
silver and gold down blisteringly, US dollar index up, up, up. All the gurus are
guruing that it's the end for silver and gold, but I reckon that's a MITE
previous. Really only one question remains: whether the 2011 European bank
solvency crisis will explode into a crisis as bad as the 2008 American bank
solvency crisis. Everything else is like a killdeer flying up in front of your
face. She's NOT the action, she's just flying away from her nest to distract you
from the real action, the nest. Any time I mention the GOLD/SILVER RATIO , I get
a flurry of emails asking me what I am talking about. I think it's simple, but
then I've been thinking about it for 30 years. The gold/silver ratio is gold
divided by silver. That's a fraction, and when the fraction's numerator (the top
number) increases, the fraction's value increases. When the fraction's bottom
number (the denominator) increases, the fraction decreases. 4/4 is greater than
2/4. 1/2 is greater than 1/4. That means that the more gold rises (increases)
against silver, the higher the ratio rises. The more silver outperforms gold,
the lower the ratio sinks (decreases). At high ratios we swap gold for silver,
because then silver is cheap relative to gold. At low ratios we swap silver for
gold, because then gold is cheap relative to silver. Right now the ratio is
relatively -- high compared to where it's been in the last six months -- but I
expect it will go higher still. Why? Because silver is more volatile than gold,
so when both metals are swinging up, silver rises faster. When both metals are
dropping, silver drops faster. Whichever direction the metals are moving, gold
plods and silver jumps in seven league boots. (Remember, though, that they don't
move this way every single day, and that silver usually waits until a rally has
been running some time before it begins outpacing gold.) Put that way, I guess
it is pretty complicated. Y'all will find the swapping strategy explained at
http://www.the-moneychanger.com/articles_files/mmm_files/silver_files/silver_will_outperform.php
Stocks sank nearly 3% this week. Today the Dow closed at 11,860.94, down a
tee-tiny 3.51 or 0.29%. S&P 500 rose 5.21 (0.73%) to 1,219.26. Dow is hovering
above its 50 day moving average (now 11,808), having already dropped through its
200 day moving average and turned its momentum unarguably down, down, down.
Falling through that 50 dma will be like stepping off a cliff into the dark,
toward the rocks below -- WAY below. Maybe a lot of y'all don't really catch why
I am so much more negative on stocks than I am on silver and gold. Aren't both
dropping? Didn't silver and gold drop even more than stocks this week? Yes, but
you are missing the most important consideration: AGAINST WHAT BACKDROP? Stocks
are in a primary bear market, a downtrend that will last 15 - 20 years from when
it began in 2000, while silver and gold are in a primary Uptrend that will last
15 - 20 years from its 2001 beginning. Y'all get it now? No matter how good
stocks look for the nonce, no matter how sorry gold and silver, makes no
difference cause the PRIMARY TREND will determine the ultimate outcome. US
DOLLAR INDEX rose two percent this week. Here's a guess, only a guess: the Nice
Government Men have been working day and night round the clock since last summer
to suppress the dollar. Had they not, the flight out of the euro would have
driven the dollar to 92 by now. Don't make no difference. Dollar today closed
down 14.4 basis points (0.19%) on its way to 83 and higher. Count on it. Euro
closed 1.3035, up 0.17%, on its way to 1.2000. Japanese Yen closed up 0.1% at
128.56c/Y100 (Y77.78/$1), on its way nowhere. Y'all enjoy your weekend! 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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