As Long As The Gold Price Remains Above $1,415 The Uptrend Abides

As Long As The Gold Price Remains Above $1,415 The Uptrend Abides
Gold Price Close Today : 1426.90
Change : (7.20) or -0.5%

Silver Price Close Today : 35.653
Change : (0.202) cents or -0.6%

Gold Silver Ratio Today : 40.02
Change : 0.025 or 0.1%

Silver Gold Ratio Today : 0.02499
Change : -0.000015 or -0.1%

Platinum Price Close Today : 1806.00
Change : -12.80 or -0.7%

Palladium Price Close Today : 791.00
Change : 2.35 or 0.3%

S&P 500 : 1,321.82
Change : 11.69 or 0.9%

Dow In GOLD$ : $176.95
Change : $ 2.70 or 1.5%

Dow in GOLD oz : 8.560
Change : 0.131 or 1.5%

Dow in SILVER oz : 342.59
Change : 3.51 or 1.0%

Dow Industrial : 12,214.38
Change : 124.35 or 1.0%

US Dollar Index : 76.80 
Change : 0.299 or 0.4%

The GOLD PRICE lost $7.20 to close Comex at $1,426.90. As long as gold remains above $1,422.60, maybe $1,415 in a pinch, no damage has been done and the trend remains higher.

If somebody is looking for terminal damage to the silver and gold market, he'd better look someplace other than today's trading.

Today's low came at $1,424, so $1,425 becomes the new support. As long as the GOLD PRICE remains above $1,415, though, the uptrend abides.

The SILVER PRICE remained astonishingly stubborn today, yielding overnight to 3550c but counter- attacking to 3650c right before Ney York opened. In New York hostile forces backed silver to 3565c by 10:00, but silver refused to be pushed any further. By 2:30 it has climbed above 3580c, had closed Comex down only 20.2c at 3565.3c.

As long as the SILVER PRICE stays above 3500c it will keep on rallying.

Friends, I am non-plussed, baffled, bumfuzzled, and bewildered. When a market climbs as fast as silver has, and as straight, you must simply step out of its way. It has already climbed 38% above its January 2638c intraday low. You can start picking numbers to please yourself from here, and guess as wildly as you want. A 50% move up would take silver to 3957c. It's as overbought as it ever gets, but it can stay overbought for a lot longer time.

We're long silver, so don't worry about it. After all this turmoil ends, and silver corrects, it will yet climb higher and higher, because silver's bull has yet several years to run. So I'm just going to enjoy the ride.

Y'all asked me what states had pending bills about making silver and gold alternative monies to Federal Reserve notes (green paper money):







New Hampshire

South Carolina




Another error to correct: I have been forgetting to update the prices of silver dollars on my daily commentary. Their price tends to be "sticky," that is, they fall and rise slower than spot silver. More than that, they carry a huge premium so we don't discourage people from buying them. Usually the older type, pre-1905 Morgan's, carry a dollar or so premium to the others, but today the pre-1905 Morgans, 1921 Morgans, and Peace dollars are all trading at $32 each wholesale ($32/0.765 oz = $41.83/oz). I'll try to remember to keep them updated.

News is so wearing and so bogus. Today the mobs performed an about-face and raced into the US dollar, out of the Euro, into stocks and out of silver and gold, all on the latest "news" that G/Gh/Qaddifi will/will not leave Libya. I think they ought to forget about Muamar and get busy importing brigades of spelling reformers. Any country that can't spell their generalissimo's last name the same way twice suffers from colossal orthographic abuse.

LO! The US DOLLAR INDEX behaved today exactly as I might have prescribed to stage a believable reversal. Yesterday it sketched out a V-bottom at 76.15, probed through the area above the V, (76.40-76.50), then shot skyward to a high of 76.979 today, then backed off to 76.80 - 76.70. Now trading at 76.795, up 29.9 basis points. Tomorrow (preferably) or the next day it must climb through 77 to prove itself.

The euro had reached its 200 Day Moving Average (1.3958) yesterday, and today reversed and closed 1.3903, down 0.59%.

It's too early to call this an upward dollar reversal, but it's a good, clean start.

All the stock cheerleaders were wearing out their megaphones and saddle oxfords today just a-cheering and a-cheering for the great rise in stocks. Ahh, but we suspicious ones know to look closer, don't we? Dow rose 124.35 points to 12,214.38, but y'all remember that this constitutes no more than a near-return to the 50% correction point. Returning is not the goal: surpassing is the goal, and today the Dow didn't. Wherefore, our suspicion breed, boils, and broods, suspecting that more disappointments await stock investors. (S&P500 rose 11.69 to 1,321.82).

Best you can say for stocks is that the Dow closed above its 20 DMA today, now at 12,204.37. MACD might (might) be turning up, RSI is neutral to high. Okay, so say I'm wrong, and stocks move to a higher altitude. What then? Will I throw ashes on my head and dress in gunny sacks and sit in the chimney corner pulling my beard out? Not hardly, because it will only mean that stocks are about to make a double top with ca. 12,400.

I'm warning y'all, stocks are the cheap chicom hand grenades in the Investment Arsenal, and they're liable to blow up on you soon as you pull the pin.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
Phone: (888) 218-9226 or (931) 766-6066

© 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 in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't.