Silver and Gold Prices Offer Great Buying Opportunities Soon

Posted: 27 Nov 2013 05:31 PM PST

Gold Price Close Today : 1237.80
Change : -3.60 or -0.29%

Silver Price Close Today : 19.63
Change : -0.21 or -1.08%

Gold Silver Ratio Today : 63.05
Change : 0.50 or 0.80%

Silver & GOLD PRICES won't get any relief until the Dow in Gold & Dow in Silver turn down. Today the DiG closed at another new high for the move, 13 oz. against the June high at 12.514 oz. Dow in silver finally gave in & posted a new high at 819.91 oz against the June high at 816.77 oz. Both are monstrously overbought, but that can persist quite a while. We wait.

The GOLD PRICE dropped $3.60 to $1,237.80 on Comex. Silver gave back 21.5 cents and ended at 1963.3 cents.

Behold, how the 5 day chart instructeth us! Overnight Monday-Tuesday gold rose to $1,255, then was slammed on the US open. Dropped to $1,245, but yesterday after the close began rising again, reached $1,254.80 overnight, then was cold-cocked again about the same time, leaving behind a huge gap on the chart from $1,294 to $1,240, and a low at $1,237.30.

Ditto for the SILVER PRICE. Only difference is that silver fell nearly to Monday's low while gold caught hold higher than Monday's $1,225.70, namely, $1,237.30. Actually, there's a modicum of hope buried in that. Also in interest rates rising a teentch today (10 year yield rose 1.48% to 2.736%). Rising rates will help silver & gold by blowing apart the Fed's Zero Interest Rate Policy.

Yet today was the first day of the move gold closed below $1,240. Hard to believe there's not one more plunge coming, and that right soon.

Keep your powder -- or, money, as the case may be -- dry because a great buying opportunity in silver & gold is coming. But we have to wait for some evidence the falling has ended. Steady. Steady. Steady.

The bull market in silver and gold has NOT ended. Keep your eyes on the Federal Reserve's balance sheet. So far they've managed to sideline about $2.5 trillion into bank reserves and keep it out of the money supply. Once interest rates rise, banks will have no incentive to leave reserves with the Fed earning 0.25%. The results will be catastrophic. The Fed remains the best friend silver and gold have.

Tomorrow is the Thanksgiving holiday and I'm taking off Friday, so I am sending you this weekly summary today.

Leading into a holiday week in the US, most everything has traveled sideways, except for silver, gold, & palladium, which have edged down.

The US dollar index today closed below its 20 day moving average & so turned its momentum heading down. Unless the dollar can turn around & close above the last high at 81.58, it is headed back to 79. That might help silver & gold.

Euro was flat today, up 0.4% at $1.3579. However, in the past two days it has once again edged over that upper trading channel line & closed above its 20 & 50 DMAs, so the euro should keep climbing. Six days ago the yen gapped down sharply, and has tumbled since. Dropped another 0.885 today to 97.89 cents/Y100, below the last two lows & evidently headed for 96.40 cents or lower. Amazing what a powerful weapon a jawbone is, especially in a world of illusion.

Dow & S&P500 both made new all time highs today while the Nasdaq Comp made a new high for the move. Dow rose 24.53 (0.15%) to 16,097.33. S&P500 edged up 4.48 (0.25%) to 1,807.23. Both are overripe for a correction, but after that should make one last leg up into first quarter 2014.

Y'all enjoy your weekend!

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

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2013, 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 or 18 ounces of silver. or 18 ounces of silver. US $ and 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.

The Fate of the Gold Price in 2 Charts

Posted: 04 Sep 2013 07:50 AM PDT

If you're following gold's bumpy ride this year, two simple charts will tell you everything you need to know about the yellow metal's prospects.

Gold futures are sinking this morning. The price has dropped about $18 off yesterday's highs. That puts gold just below $1,395. For the past five trading sessions, gold has slowly trended lower. It's consolidating just below $1,425. So if you're a fan of the rally off its July lows, you should be encouraged by this action.

Right now, gold is approaching an important trading zone. If it successfully penetrates $1,425, all of the damage it has endured since mid-May will be repaired.

This zone between $1,425 – $1,475 won't be easy to leave behind. Remember, this is same area that contained the meat of gold's major drawdown back in April. If long-term bullish buyers really are in control, they will need to make their presence felt if gold has any chance at all at $1,475…

However, if you want to truly understand how important this trading zone has become for gold, you have to view gold's entire bull market over the past decade…

Gold lost the mammoth uptrend that guided it to gains since 2002. Now, gold is approaching a point where it could attempt to challenge its 50-period moving average. If it fails again near $1,450, I expect the metal to continue its downtrend, ultimately landing somewhere between $1,100-$1,000. That would allow a complete retracement of 2010-2011 push toward $2,000.

I've spent a lot of time talking about the stock market's potential make-or-break moments lately. But gold is now getting to the point where a couple of trading weeks in either direction could ultimately decide its fate. If gold fails here, expect another leg lower toward my ultimate price target.

Regards,

Greg Guenthner
for The Rude Awakening