The Gold Price Fell Today You are Watching the Last Leg of the Correction

Gold Price Close Today : 1699.20 Change : (11.70) or -0.68% Silver Price Close
Today : 3337.4 Change : 80.0) cents or -2.34% Gold Silver Ratio Today : 50.914
Change : 0.851 or 1.70% Silver Gold Ratio Today : 0.01964 Change : -0.000334 or
-1.67% Platinum Price Close Today : 1702.00 Change : 12.75 or 0.75% Palladium
Price Close Today : 709.00 Change : -2.25 or -0.32% S&P 500 : 1,371.14 Change :
0.27 or 0.02% Dow In GOLD$ : $157.66 Change : $ 1.55 or 0.99% Dow in GOLD oz :
7.627 Change : 0.075 or 0.99% Dow in SILVER oz : 388.32 Change : 10.21 or 2.70%
Dow Industrial : 12,959.86 Change : 37.84 or 0.29% US Dollar Index : 79.88
Change : -0.098 or -0.12% About as I expected, silver and GOLD PRICE fell today.
Gold doesn't have enough steam yet to breach the $1,715 barrier. It will, it
will, but first another dip of the toe below $1,700. Today the GOLD PRICE
dropped $11.70 and ended the day on Comex at $1,699.20. Gold was ailing the
whole day, and never reached higher than $1,708.20. Still, it might well catch
hold here at the 50 day moving average ($1,694.16) where also some lateral
support hides at $1,696. If that gives way, then gold could shoot for $1,674.76,
the 200 DMA, or it might peek below $1,650, just to scare all the gold bugs to
death. Matters little, as you are now watching the last leg of the correction
from the $1,787 rally. The SILVER PRICE lost 80.1c today to close at 3337.4c,
near the 3333.3c low. I'd prefer silver drop not below today's low, since that
would preserve the 5-day uptrend. Silver's next fight comes at 3300c, if it
doesn't hold this line. But I don't much care if it falls to 2900c (now rather
unlikely) because I've been looking at a technical measure that implies silver
has very little downside left before another wild rally begins, if it hasn't
already. This will probably turn out to be a toilsome week for silver and gold,
but this humiliation has not long to run. By March's end 'twill be past. Hence
y'all had best keep your eyes peeled for a spot to buy. Once this has ended, you
will only be able to spot silver and gold rapidly disappearing toward the
stratosphere. In the biggest bond writedown in history, the Greek government
swapped most of the bonds coming due mid-month for others worth less than half
their value. Wow. World is getting better and better, making new records all the
time. Ain't that fiat money and fractional reserve banking great! Hey! What
about them bankers, huh?! I mean, re-po'ing an entire COUNTRY! That takes some
gall, as my grandmama might say. Y'all proud of your banks yet? Your
politicians? 'Twas a rough day for silver and gold, but pay it no mind. Higher
prices are coming shortly for metals, and lower prices for stocks. Something
will break soon. For too long stocks and metals have been closely tracking each
other. Either I am dead wrong and stocks will not lose another 80% of their
value against metals and silver and gold do not have most of their bull market
gains in front of them, OR stocks will breakdown soon against silver and gold.
(Naturally I do NOT think I am wrong about that.) I've been looking at my
superbly reliable indicator, the Dow in Gold Dollars that measures the value of
stocks in gold. Soon, soon, it should break down, probably as a consequence of
stocks falling AND gold advancing both. But y'all recall that I am no more than
a natural born fool from Tennessee, and I ain't as smart as them fellows who
want to sell y'all stocks. US dollar index gave away 9.8 basis points today, a
measly 0.13%, but that carried it below 80 again, a blow to morale. As long as
it clings above 79.60 the noxious dollar will keep climbing. The nasty euro
today rose 0.22% to $1.3153. True, it has caught on its 50 and 62 day moving
averages (1.3093 and 1.3083), but in the last 5 days it also left behind an
island reversal, a pattern that very seldom fails to wreak its vengeance. Expect
to see it lower. All the good news (?) about the Greek Debt Deal has come out,
and the future holds -- what? What good news? I sure don't know. The nugatory
yen edged up 0.23% today to 121.57c/Y100 (Y82.26/US$1). Maybe Friday's spike
down marked the bottom. Hard to fathom who would sell more oversold yen from
here. No matter much -- all the fiat currency exchange rates amount to no more
than an elaborate kabuki anyway. Stocks eked out small gains today, but not
unanimously. Dow rose, S&P rose barely, while the Nasdaq composite and Russell
2000 fell. Disagreement, non-confirmation, confusion, bewilderment. You couldn't
get from here to Tupelo using that roadmap. Dow rose 37.84 (0.29%) to the same
old neighborhood, 12,959.86. S&P500 barely moved, but you could catch it with
time-lapse photography. Climbed 0.2% (0.27 points) to 1,371.14. 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.