Gold Price Close Today : 1,630.60 Gold Price Close 6-Jan : 1,616.10 Change :
14.50 or 0.9% Silver Price Close Today : 2949.3 Silver Price Close 6-Jan :
2865.3 Change : 84.00 cents or 2.9% Gold Silver Ratio Today : 55.288 Gold Silver
Ratio 6-Jan : 56.402 Change : -1.11 or -2.0% Silver Gold Ratio : 0.01809 Silver
Gold Ratio 6-Jan : 0.01773 Change : 0.00036 or 2.0% Dow in Gold Dollars : $
157.48 Dow in Gold Dollars 6-Jan : $ 158.10 Change : $ (0.62) or -0.4% Dow in
Gold Ounces : 7.618 Dow in Gold Ounces 6-Jan : 7.648 Change : -0.03 or -0.4% Dow
in Silver Ounces : 421.19 Dow in Silver Ounces 6-Jan : 431.37 Change : -10.17 or
-2.4% Dow Industrial : 12,422.21 Dow Industrial 6-Jan : 12,359.92 Change : 62.29
or 0.5% S&P 500 : 1,289.10 S&P 500 6-Jan : 1,277.81 Change : 11.29 or 0.9% US
Dollar Index : 81.531 US Dollar Index 6-Jan : 81.264 Change : 0.267 or 0.3%
Platinum Price Close Today : 1,485.80 Platinum Price Close 6-Jan : 1,401.00
Change : 84.80 or 6.1% Palladium Price Close Today : 636.70 Palladium Price
Close 6-Jan : 613.20 Change : 23.50 or 3.8% The GOLD PRICE and the SILVER PRICE
proved that I had misread the chart yesterday, thinking they had yet one more
small leg to rise. However, that euro fall/dollar spurt knocked them back. The
GOLD PRICE lost $16.70, closing Comex at $1,630.60; silver gave back 59.9c to
end at 2949.3. How much damage was done? Very little. The GOLD PRICE remained
above $1,630 support/resistance. Not bad after a week working through two
resistance levels ($1,607 and $1,625). However, if gold closes BELOW $1,630,
there's no safety net above $1,607, and a fall through $1,607 - $1,600 would
evoke painful defections from gold's newly won fair weather friends. Yet this,
too, is valuable. Extent of this fall will tell us how healthy gold is, and
whether it has bottomed in truth. Even if it fell to $1,550 (don't I wish!),
that would merely confirm the previous (29 December) low as a bottom. Only
violating that bottom ($1,523.90) would imperil gold with new low prices. If I
had to say, and I never can seem to resist saying, it appears that gold has
moved stoutly off its bottom and will make one further leg up toward $1,680
before it is dragged back into another correction. If so, Monday or Tuesday
surely will see gold rise through $1,650 resistance, perhaps as high as $1,705
before it relents. After all's said and done, the SILVER PRICE gained 2.9% this
week, passing several milestones along the way. First, it crossed above the 20
day moving average (2908c). Next, it punched thru the downtrend line from the
September highs, and for four days has abided above that line. From a close to
the ground viewpoint, silver broke out then went back to the trend line today to
plant a final kiss good-bye on its forehead. All this makes it all the more
important that silver hold 2950c support, lest the newly boarded rats jump ship.
Above silver must clear 3050c resistance. A break of 2950c support would not
necessarily take silver below 2850c again, but it would lean it that way
sharply. Monday will reveal silver's mind for the week. My money is on higher
silver next week. IN SUM, GOLD has most likely bottomed, although SILVER might
have one more drop in mind, not necessarily to a new low. Time to start buying.
Doing a little thinking the last few days has led to some gold targets I am
almost loath to share with y'all, they sound so high. By end of 2012 or January
2013, gold ought to cost $2,660 an ounce. Top of this next wave that just began
stands somewhere ABOVE $4,500. Yes, yes, I know it sounds crazy, but I'm just
the reporter, not the creator. At $4,500 gold a 30:1 ratio puts silver at $150.
Crazy, but y'all will behold it, and with your own eyes. This week's big gainers
were platinum (up 6.1%), palladium (3.8%), and silver (2.9%). Gold gained only
modestly (0.9%), as did stocks. US dollar index remained above 81 and gained a
little ground: rally intact. Tomorrow is the 12th anniversary of the 14 January
2000 all time inflation-adjusted high in the Dow: 11,722. That would equal
15,325 today. So in value-terms, although the Dow today stands nominally above
that 11,722 close, it's an illusion. In inflation adjusted dollar terms, the Dow
since 2000 has lost 19% of its value. Against gold and silver it has lost much
more, over 80%. Today the Dow lost 48.81 (0.4%) to close 12,422.21. S&P500 lost
6.4 (0.5%), ending at 1,289.10. For the week, the Dow tried to penetrate doubled
resistance at 12,600 from the long narrow triangle it fell out of last August,
failed even to beat 12,500, and has rolled over almost off the bed. Next move
will be an Edgar Rice Burroughs special, headed toward The Earth's Core. Will
look like a mole with a motor. (Yesterday I wrote that the Dow had fallen out of
a "long narrow equilateral" triangle. One puzzled reader wrote to ask me how a
triangle could be both long and narrow AND equilateral. I wore out three
try-squares trying to figure a way, but couldn't. So scratch the "equilateral."
The triangle was just long and narrow, period.) Today the US dollar gained a
massive 76.1 basis points (0.98%) to close 81.531, while the euro lost 1.11% to
close at a new low for the move, 1.2675. What happened? When talks on cutting
Greece's debt looked close to collapsing, the S&P rating agency downgraded
government debt of France, Austria, Italy, and Spain by a notch each. From AAA
France and Austria fell to AA+, Italy was lowered to BBB+ and Spain twitched
from AA- to A. That spooked investors out of euros and into dollars, which may
be likened to hiding from a lion in a bear's den. Folks may pretend that Greece,
with less than 2% of the Eurozone's GDP, raises no waves when its boat sinks.
However, they can't pretend that France doesn't matter, since portfolios all
over Europe are stuffed with France government debt which today became worth
much less than yesterday. The pretence of debt and fiat money is melting like a
wax mask too near the fire. What can any investor count on any longer, when what
was supposed to be the lowest risk investment -- government debt -- suddenly
devalues overnight, or may even be wholesale devalued in banking deals out of
control of investors or citizens? Under these circumstances, I remember those
great sentiments of Omar Khayyam, "Ahhh! Take the cash, and let the credit go,
nor heed the rumble of a distant drum." You'd better get value in your own hands
and in real things, because all the abstracts and illusions are leaving the
planet for money heaven. 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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