Gold Price Close Today : 1757.10 Change : 32.60 or 1.89% Silver Price Close
Today : 3441.30 Change : 121.3 cents or 3.65% Gold Silver Ratio Today : 51.059
Change : -0.884 or -1.70% Silver Gold Ratio Today : 0.01959 Change : 0.000333 or
1.73% Platinum Price Close Today : 1687.10 Change : 49.10 or 3.00% Palladium
Price Close Today : 710.60 Change : 15.60 or 2.24% S&P 500 : 1,362.21 Change :
0.98 or 0.07% Dow In GOLD$ : $152.54 Change : $ (2.68) or -1.73% Dow in GOLD oz
: 7.379 Change : -0.130 or -1.73% Dow in SILVER oz : 376.77 Change : -13.29 or
-3.41% Dow Industrial : 12,965.69 Change : 15.82 or 0.12% US Dollar Index :
79.06 Change : 0.115 or 0.15% Last three days of last week silver and the GOLD
PRICE steadfastly refused to drop further, even though gold hit a low of
$1,705.60 on 16 February -- and then closed $21 higher. Now we are left with the
interpretation that both have been undergoing a correction within a rally, that
the rally ain't over yet, and that gold will reach $1,805 or higher before the
rally ends and a bigger correction sets in. The GOLD PRICE today closed a little
higher than its last peak, up $32.60 to $1,757.10 (versus $1,756.80 at the 2
February peak, when all this fun began). On Friday it closed at $1,724.60, so it
knocked down all the gates of resistance around $1,730, $1,740, and $1,750. Hard
to imagine that it won't follow through tomorrow with a higher close still. It
closed near the high for the day ($1,759.43). Only thing that could gainsay
higher prices and a continuing rally would be a close below $1,725 tomorrow.
Otherwise gold has the wind in its sails. Gold leapt 1.9% but the SILVER PRICE
pulled on its 7-league boots and vaulted 3.7%! High came at 3445c, and silver
closed near that at 3441.3c, up 121.3c. Low last week arrived on Thursday at
3262c, then over the next three days the SILVER PRICE kept bouncing against
3360c, like a helium balloon patting on the ceiling. Once it cleared 3380c in
Europe, it was bound to break 3400c and run higher in the US. Pointing to better
things still, silver has now reached its 300 day moving average (3468c) once
again. 200 DMA is not much higher at 3495c. When silver crosses that line,
buyers will pile on. Silver has in it 3570c at least, and maybe 3900c. Unless
contradicted by lower closes tomorrow, gold and silver will move higher. On
Friday, 24 February, I will be speaking for the Fayette County (Tenn.) Tea Party
at the Fayette County Courthouse, in the town square at Somerville, Tennessee.
Party starts at 7:00 p.m., and the topic will be "Restoring Freedom by
Rebuilding Local Economy." This may be your only chance to see a natural born
fool from Tennessee live and outside captivity. When you put three men all
anxious to get home to their wives in a car, you throw the brains right out the
window. We started out from Houston Friday at 2:00 p.m. and arrived at my house
at 5:30 a.m. Brainless. Looking at markets, you can't afford to wear blinders.
You have to look at markets that feed back on each other, and inwardly you have
to look at more than a market's close. If something doesn't fit, that's probably
because it really doesn't fit, and something is up. Today, it appears for the
nonce, that Greek Debt Deal was finally accepted. Just wait to see how permanent
that is. Reports I hear from Greece indicate a level of economic suffering that
can't be maintained. Today came the answer to my riddle last week, Why have
silver and gold not fallen further, following through on their repulse at
$1,750? Answer is, Because they are strong, and haven't yet completed the upward
move that began from the 29 December bottom. Today the headlines crowed that the
Dow hit 13,000, and it did, 13,005.04 as a matter of fact, highest since May
2008, but -- whoops! -- it didn't close near there. Meanwhile, if you merely
glance at today's chart, you will notice that the Dow climbed up a mountain,
then fell off the mountain from about 1:30 onwards, closing at 12,965.69, up
only 15.82 points (0.12%) and 40 points lower than the high. Now glance over at
the Dow in Gold Dollars, and you'll see that it in fact DROPPED G$2.68, about an
eighth of an ounce and way below the last high. Meanwhile, the S&P500 rose 0.98
point, a noteworthy 0.07%, to 1,362.21. Now I will give y'all that if the Dow
intended to clear 13,000, it might first bounce off and try again, but today's
chart indelibly resembles a market running clean out of steam and fainting. I
also wonder why amidst this general jubilating the NASDAQ dropped 0.11% and the
Russell 2000 dropped 0.7%. Not everybody in the choir is singing the same tune.
Why not? The US dollar index gave up 11.5 basis points (0.15%) to close 79.058,
down over 50 basis points from a week ago. The euro gained 0.75%, but the
jubilators might want to notice that price didn't reach the last peak, which it
must BEST to rally further. The yen has spent the last three weeks dropping.
Today it dropped another 0.21% to 125.46c/Y100 (Y79.71/US$1). Being no more than
a natural born fool and not one of them genius economists, I am plain bumfuzzled
by the popular belief that when the US dollar drops, it is good for stocks. But
wait. If the dollar drops, that signals inflation or some monetary problem, and
that introduces confusion into the entire economy, so explain to me exactly why
the dollar dropping is good for stocks? On 21 February 1848 the Communist
Manifesto, written by Karl Marx and Friedrich Engles, was published in London.
Hard to recall any other document from history that has shed so much blood.
However, I find it wryly amusing, in a sort of gallows-humor way, that in
supposedly capitalist and anti-socialist America, all ten planks of the
Communist Manifesto are written into law and daily practiced, to wit: 1.
Abolition of private property and application of all rents of land to public
purposes. If you believe you own property, just ignore the property tax bill and
see if the real owner doesn't show up. And, what's that thing called "zoning"?
2. A heavy progressive or graduated income tax. 3. Abolition of all rights of
inheritance. We call it an estate tax. 4. Confiscation of the property of all
emigrants and rebels. We call it government seizures, tax liens, and
anti-terrorism laws. 5. Centralization of credit in the hands of the state by
means of a national bank with State capital and an exclusive monopoly. Behold, I
give you the Federal Reserve system. 6. Centralization of the means of
communication and transportation in the hands of the State. Think FCC and DOT
and ICC and FAA and driver's licenses. 7. Extension of factories and instruments
of production owned by the state, bringing into cultivation of waste lands, and
improvement of the soil generally in accordance with a common plan. Think "state
sponsored enterprises", Department of Agriculture, Dept of Commerce and Labor,
Dept. of Interior, EPA, BLM, etc., etc. 8. Equal liability of all to labor.
Establishment of industrial armies, especially for agriculture. Think minimum
wage laws and social security and again, the Department of Agriculture. 9.
Combination of agriculture with manufacturing industries, gradual abolition of
the distinction between town and country, by a more equitable distribution of
population over the country. Think "factories in the field" which the Dept. of
Agriculture has been pushing since the 1930s, zoning, and government control of
manufacturing and agriculture. The "more equitable distribution" has meant
depopulation of the countryside. 10. Free education for all children in public
schools. Abolition of children's factory labor in its present form. Combination
of education with industrial production. I don't know about y'all, but in
Tennessee we have these outfits called "public schools." Maybe y'all don't have
those up north. And if you haven't realized it yet, all that state sponsored
"higher" education is nothing more than vocational training for white collar
workers. COMRADES! We have met the communists, and they are us! 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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