Gold Price Close Today : 1777.80 Change : (9.70) or -0.5% Silver Price Close
Today : 3401.3 Change : (65.8) cents or -1.9% Gold Silver Ratio Today : 52.268
Change : 0.712 or 1.4% Silver Gold Ratio Today : 0.01913 Change : -0.000264 or
-1.4% Platinum Price Close Today : 1644.40 Change : 1.20 or 0.1% Palladium Price
Close Today : 664.90 Change : 3.95 or 0.6% S&P 500 : 1,251.91 Change : 11.94 or
1.0% Dow In GOLD$ : $140.45 Change : $ (0.09) or -0.1% Dow in GOLD oz : 6.794
Change : -0.004 or -0.1% Dow in SILVER oz : 355.13 Change : 4.59 or 1.3% Dow
Industrial : 12,079.06 Change : -74.62 or -0.6% US Dollar Index : 77.47 Change :
0.608 or 0.8% The GOLD PRICE tripped $9.70 to close at $1,777.80 on Comex, but
that painted no big break on the chart. All it did was return to that well-known
$1,775 support, reserving its option to challenge $1,800 again this week. The
five day chart shows gold touching $1,800 last Wednesday, and nearly touching it
again this weekend. That could make a double top, but the GOLD PRICE has not
tipped its hand yet. A trend in force remains in force until broken, and gold's
uptrend hasn't been broken yet. A break below $1,775 would hurt gold badly,
pointing it toward a minimum $75 and possibly $100 drop (as low as $1,675).
Danger of that happening would be annihilated by a two-day gold close above
$1,800, and break gold out upside. The SILVER PRICE is mimicking the GOLD PRICE
, but with a bit less fervor. She has returned to that well known 3400c
support/resistance, and the stakes here are high. Should the SILVER PRICE fall
through 3400c, it steps off the top of the building into thin air. Today's range
was 3478 - 3393c. Most likely course is a downside break, since the SILVER PRICE
has formed an ascending wedge which usually resolves by breaking out downside.
That, however, could reverse in an instant with any slip by the Fixers in
Europe. Markets are nervous as a banker in church. Here's a message for
gold-silver swappers. If back earlier this year you swapped out of silver into
gold, you can now swap back into silver with an approximate 37% gain. I'd grab
that. (That will only work if you swap back into US 90% silver coin. Any other
form of silver severely lowers your gain in ounces because they carry such high
premiums). Today's markets really didn't tell us very much. Stocks dropped a
smidgen, along with SILVER and gold, while the euro fell and the dollar index
rose. Still, everything remains in the old familiar trading ranges. Wait --
y'all don't think markets really have been fooled by those two Establishment
front men installed to end all popular government in Italy and Greece, do y'all?
As I always say, the Establishment has only two weapons, liquidity and blarney.
Those two shills represent big booms from the Blarney Cannon. To the facts! US
dollar index rose 60.8 basis points or 0.78% to 77.471, a sizeable move. What
accomplisheth this on the 5-day chart? Wednesday last week the $ index rose
straight up from 76.6 to 78.0, peaked nearly 78.20 early Thursday, then fell
into Friday's low about 76.8. It left behind a support level at 77.40. Thus
today's rise, clearing 77.40, contradicts all that downside last week, and
points the dollar up again. As long as it advances tomorrow, 'twill be in rally
mode. Watching the Japanese yen is as embarrassing as accompanying your friend
to his daughter's piano recital where you doesn't know the piece and
thumbfingers her way through. Money has been fleeing Europe and some wanted to
run into the yen, but the Japanese Nice Government Men couldn't allow that,
because a higher yen chokes off Japanese imports, and Japan is nothing more than
an island-factory exporting to live. At last they acted, and the yen dropped
from 132c/Y100 to 127.50 in one day. But it was shortsighted, because they only
punished those long Yen without giving them a reason not to buy yen again. The
yen has since crept up to close 129.69 today, up 0.87% and above its 20 day
moving average (129.62 today). Worse still, it has crept back above the
downtrend line and the trading range above that, and is about to cross above the
50 dma (129.93). All this isn't because the Yen is the prettiest currency around
and everybody wants to dance with her. Rather, she just doesn't have quite as
many warts as all the other girls. The euro rose on Friday with the news that
Fixers had been installed in Italy and Greece, but puked back all those gains
today. Closed 1.3630, down 0.87%, and headed for 1.2000. STOCKS today continued
slowly the decline begun from Friday. That Friday peak itself is part of a
double top about 12,175. Expectation remains -- unless gainsaid by a close above
12,175 -- that the Dow Jones Industrial Average will continue to sink. Momentum
is BARELY up since the Dow stands above its 200DMA (11,977), but not by much.
May still see one last push up to 12,400 before it collapses, but sooner or
later collapse it will. Dow closed down 74.62 (0.61%) at 12,079.06. S&P 500
dropped more, 11.94 (0.94%), to 1,251.91. News stories are surfacing again about
counterfeit coins pouring counterfeit coins pouring out of China. Remember that
counterfeiters most often counterfeit coins that carry large premiums, so that
out of an ounce of $,1800 gold they can produce 20 one-dollar coins that sell
for $10,000 an ounce. That's another reason always to stick with low premium
bullion type coins and eschew numismatic coins. Besides, the weight and
dimensions of bullion coins -- Austrian 100 coronas, Mexican 50 pesos,
Krugerrands, American Eagles, Maple Leaves -- are all known, and simply by
WEIGHING you will catch almost all counterfeits. You'll find a complete chart of
weights for gold coins at
http://the-moneychanger.com/images/coinweightsgross.xls These counterfeit
reports generate waves of hysteria in the market, when in fact counterfeit gold
coins are generally a negligible problem. Of course, you ought always work with
a reliable gold and silver dealer who has been in business for a long time --
like us. Remember that thirty years' experience might not mean much. Many
dealers have 30 years' experience, but it's only one year's experience thirty
times. Be careful, and count your change. 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.
