Gold Price Close Today : 1607.50 Change : (8.60) or -0.5% Silver Price Close
Today : 2874.90 Change : 9.60 cents or 0.3% Gold Silver Ratio Today : 55.915
Change : -0.487 or -0.9% Silver Gold Ratio Today : 0.01788 Change : 0.000155 or
0.9% Platinum Price Close Today : 1427.50 Change : 9.50 or 0.7% Palladium Price
Close Today : 617.90 Change : -49.35 or -7.4% S&P 500 : 1,280.70 Change : 2.89
or 0.2% Dow In GOLD$ : $159.37 Change : $ 1.28 or 0.8% Dow in GOLD oz : 7.709
Change : 0.062 or 0.8% Dow in SILVER oz : 431.07 Change : -0.30 or -0.1% Dow
Industrial : 12,392.69 Change : 32.77 or 0.3% US Dollar Index : 80.98 Change :
-0.456 or -0.6% For the past six months or so it seems that when the GOLD PRICE
and SILVER PRICE close one-up/one-down, the next day they both rise. Now that
doesn't happen every time, but enough to spook me. And today silver rose up 9.6%
(piddling amount, 0.3%) to 2874.9c while gold fell $8.60 (1/2%) to $1,607.50.
The GOLD PRICE chart has that "I've built a mountain peak and now I'm skidding
down the other side" look to it. It is skids past $1,605, 'twill skid a ways
further. On the other hand (there's that double-minded phrase again), if GOLD
can clear $1,625/$1,630, why it would look strong as a garlic milkshake and
attract all sorts of hangers-on. Range for gold was not noticeably weak today,
$1,623.20 to $1,606.43 against Friday's $1,631 to $1,608.75. Well, it won't hang
around here long, and tomorrow ought to find gold higher. The SILVER PRICE range
today wasn't much different to Fridays (low came 6c lower, high 24c lower), but
silver has established an ever so slight downtrend with support at 2860c. If
silver breaks that mark, all its new found friends and cheerleaders will head
for the exits like dope-dealers at a concert when the cops show up. But you let
silver rise a dollar and pierce 2960c, and investors will be swarming silver
like politicians around a money hole. And I don't know which way it will break.
I don't think either metal has a lot of downside left. They've withstood huge
drops, from $1,927 to $1,522 (21%) and from 4950c to 2600c (48.3%). That just
about does it. But I am quixotically hoping still that silver will fall off the
wall once more time while gold holds its place, and take that gold/silver ratio
up to 57.5 for another swap. If it doesn't, well Sancho Panza and I will just go
looking for more windmills. Times come when you can pay little attention to
markets but this isn't one of them. Watch silver and gold closely, looking for
that ratio over 57.5, and use that as your trigger to buy more. I manage a few
accounts for some charitable entities, and I've been casting up accounts lately,
looking over performance. Big question in my mind was the wisdom of keeping
presently-unneeded cash in silver or gold (I don't mean cash you'll need in six
months or less, or even 12 necessarily) rather than keeping it in a bank. Some
of these accounts add some gold or silver nearly every week, so they've bought
this year high and low. And in years past. Since some of them are 12 years old
and some only two or three, their performance varies a lot, but the lowest shows
a 21% lifetime gain while the greatest has added 71%. So y'all can leave your
money in banks if you want, but that's sufficiently proved to me that my money
ought to be held in silver and gold. Let the market rage, up and down, I'll just
keep on converting those excess bucks into metals. Course, I ain't got one of
them fancy money-manager decrees from Harvard or MYT -- I'm just a natural born
fool from Tennessee, so what do I know? Don't look now, but the US dollar index
has started its next leg up. Oh, today it gave up 45.6 basis points (0.6%), but
gave it up to 80.98, after Friday's close at 81.264. Dollar gained 164.4 basis
points last week! Face it: y'all will be dealing with a strong dollar for
several months, UNLESS it falls below 79.50. The euro is no longer a contender,
except in the "Fiat Currencies Race to the Bottom." It rose a bit today, 0.4%,
to 1.2764, but this is virtual leagues from support around 1.3200. Market
refuseth yet to believe that the euro has been fixed. Yen is still playing with
that bottom channel boundary line -- the bottom line of the channel it fell OUT
of. Rose today 0.17% to 130.15c/Y100 (Y76.83/$1). Doubtful that the Nice
Government Men in Japan would let the yen out from under their thumb. STOCKS
have stalled around 12,400. Dow today stirred a little bit, up 32.77 (0.27%) to
12,396.69. S&P500 rose about the same, 2.89 (0.23%) to close 1,280.70. Back off
and you'll see a gigantic broadening top, like unto the top posted in 1999 -
2000. Takes a long time for a market that big to roll over, but by the time it
does it has built up lots of downside inertia. I know there will be sirens
aplenty, crooning in your ears that the worst of the recession is over and the
economy will come back this year. All I can say is, Hide and watch. Argentum et
aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders,
The Moneychanger The-MoneyChanger.com © 2012, 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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