|
|
Gold
Price Close Today : 961.80
Change: -15.90 or -1.6%
Silver Price Close Today : 18.735
Change: -20.6 cents or -1.1%
US Dollar Index Today: 72.04
Change: 0.31 or 0.4%
Sorry I missed y'all yesterday. We were covered up with orders plus we are
helping finish our log building for our church. Too much work, not enough
people.
But y'all shouldn't have missed me since it was obvious what was happening. The
GOLD PRICE moved close to US$1,000 and the fight began with the short
sellers. They hit the SILVER PRICE, too, and the volatility was awful,
with gold moving $4 or more on a tick (a single trade). Crazy. Hard to trade.
That sort of volatility can occur at tops, or at crucial resistance. Which is
this? Because metals only lately broke out of a long correction, it's far
more likely crucial resistance than a top. Another thing that points to that:
the buyers back off only slowly, grudgingly.
Long and short of it is that both silver and gold prices are bouncing back
from obvious resistance, but quivering to get through that resistance. US$950
and $18.50 are most likely support here, but things are so volatile you have
to cut the metals some slack. This retreat won't last more than a couple of
days. Fear is in the air, and it is NOT fear from silver and gold buyers. Buy
any retreats.
Stocks climbed 276.74 to close at Dow 11,239.28. One thing you have to
remember to keep from being mauled and eaten by a bear market is that bear
markets stage sudden, sharp rallies. So stocks today. So it rallies to
12,000? 12,250? What changes? Nothing. So, then, why would you want to hold
stocks? No reason. Sell while you can still find buyers.
The US DOLLAR INDEX rallied today 31 basis points to close slightly over 72
at 72.042. Yaaawn. We've seen this act before. Does
it mean anything? Who knows? Nobody has accused the dollar of sincerity
recently.
Remember the scenes from the old Tarzan movies? Walking through the jungle,
all the bearers suddenly grow quiet. They cock their heads. The safari
leader, clutching his rifle, asks the lead bearer, "What is it, Mbwezi?" Dimly in the distance the throb of drums
grows louder. The female star creeps closer to the safari leader, grabbing
his arm and scooting behind him. The drums throb louder. The bearers drop
their loads.
Now if you've seen one Tarzan movie, you know that the Ngali,
the most bloodthirsty tribe in all of Africa who specialize in dicing their
victims while still alive, are about to attack. You know that unless Tarzan
shows up pretty soon, the entire safari will be salsa.
That scene is where the US dollar is right now, hiding behind safari leaders
Bwana Ben and Bwana Paulson, while the wild tribes of bond & currency Ngali circle in the jungle, waiting for their chance to
bring down the whole safari. Can't you hear the drums throbbing in the
distance? Bad juju.
Franklin Sanders
www.the-moneychanger.com
Reprinted
with permission from The Moneychanger. Franklin Sanders
lives on a farm in Middle Tennessee by choice, deals in physical gold &
silver, and has been writing and publishing The Moneychanger for nearly 26
years. In 1993 he wrote Silver Bonanza for Jim Blanchard. Last year he
published "Why Silver Will Outperform Gold 400% and & The
Professional Trading Secrets That Will Make the Most of Your Silver &
Gold Investments," still available at www.the-moneychanger.com/order/publications.html.
You can sign up for Mr. Sanders' free daily e-mail
commentary on gold & silver at www.the-moneychanger.com, and download your free portfolio calculator to
keep up with your gold and silver investments.
___________________________________________________________________________________________________________________________________
|
|
