Yellow Janet spoke before congress today & said she would do just like Ben the Criminal before her. Stock markets liked that & rose. They want more of a steady stream of new money.
The Dow leapt 192.98 (1.22%) to 15,994.77. Not to be outdone, the S&P500 bounded 19.91 (1.11%) to 1,819.75. Those jumps took both indices above their 20 day moving averages (15,956 & 1802.15), & the S&P500 above its 50 DMA (1,809.55). MACD flashed a BUY signal, which points toward higher prices still.
Sorry, it's still not a train I want to ride. Rails have been dismantled up ahead, & there's a bridge out.
Dow in gold barely rose, up 0.04% to 12.40 oz, nothing to disturb the sharp downtrend. Dow in Silver edged up 0.73% to 793.67 oz. Trend undisturbed.
US dollar index was surprisingly unruffled by Yellen's "speech". It rose 2 basis points to 80.72, just enough to climb above its 50 DMA (80.70). Mercy, Nice Government Men! Is that the best you can do? Come on, y'all have a tape to paint here, global currency hegemony to keep up! For heaven's sake, this isn't the Soviet Union.
Euro climbed to the uptrend line it fall through in January, above its 50 DMA (1.3649), looked around, & keeled over. Closed down 0.05% at $1.3638. I've tried & tried, but I just can't get excited about the euro. It's almost as much fun as sitting in a bus station.
Yen gave up 0.37% to 97.46 cents/Y100. Still in an uptrend. Apparently the Japanese Nice Government Men are sleeping at the switch, too.
The 10 year treasury note yield rose today 1.53% to 2.719%. This brings it back from a visit to its 200 day moving average below, and validates again the bottom of a flat trading range. Just a skootch more will turn it up positively.
I was pretty proud of gold today, rising $15.30 (1.2%) to $1,290.10 and the next resistance area. Time after time since last June this $1,290 level has played support/resistance. Since gold after much stubborn labor broke through the December close ($1,267.50) I expect it to churn & chew through this barrier, too. Might take more than one try, but as long as it doesn't fall back below $1,267.50 'twill be all right.
Silver inched up only 4.4 cents (0.22%) to 2014.3 c. About all you can say is, At least it was up. Silver has not yet conquered 2050c. Yes, it is headed up, pointed the right direction, but has to wax peppier.
Silver & gold have not looked more hopeful for the last year. I've been buying all the way up, & on this rally I haven't been continually beaten up.
My beloved friend and editor of my At Home In Dogwood Mudhole volumes, Fiona McNeill, passed away today from cancer. She leaves a husband & six year old son and a horde of people who loved her. Please pray for her husband Ed and son Alex. "The Lord gave, the Lord hath taken away -- blessed be the name of the Lord." - Franklin Sanders, The Moneychanger © 2014, 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$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.
WARNING AND DISCLAIMER. Be advised and warned:
Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.
NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal & I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.
NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.
NOR do I recommend buying gold & silver on margin or with debt.
What DO I recommend? Physical gold and silver coins & bars in your own hands.
One final warning: NEVER insert a 747 Jumbo Jet up your nose. Footnotes:
The US DOLLAR INDEX is a average exchange rate for the US dollar against the Euro, Yen, Pound sterling, Canadian Dollar, Swiss Franc, and Swedish Krona, weighted for each country's trade with the US. It gives a general measure of the US dollar's performance against all other currencies.
The DOW IN GOLD DOLLARS measures the Dow Jones Industrial Average in gold dollars (0.048375 troy oz. by law). The DiG$ depicts the Primary (20 year) Trend of stocks against gold. When the DiG$ is dropping, gold is gaining value against stocks in a trend that should last 15 - 20 years. The DiG$'s chart is identical to the Dow in ounces of gold, but gives us one unvarying measure all the way back to 1896. Because it shows the primary trend ("tide") of gold against stocks, for investors it is the single most important financial chart in the world today. Since its August 1999 high at G$925.42 (44.8 ounces), the DiG$ has trended down, targeting a G$41.34 - G$20.67 (2 - 1 oz. of gold will buy the whole Dow).
The DOW IN SILVER OUNCES shows how many ounces of silver are needed to buy the entire Dow. The DiSoz is trending down with a target of under 36 ounces.
The GOLD/SILVER RATIO is the gold price divided by the silver price, & shows how many ounces of silver it takes to buy one ounce of gold. The Ratio shows us the Primary (20 year) Trend of gold's value against silver. When the Ratio's trend is dropping, silver is gaining value against gold. This trend targets a gold/silver ratio of 16 ounces of silver to one of gold within the next 5 - 10 years. That implies that silver will massively, vastly outperform gold before this bull market ends. When both metals are rallying, the ratio often (but not always) drops, confirming the rally. CLOSES 11-Feb-14 Price Change % Change Gold, $/oz 1290.10 15.3 1.20% Silver, $/oz 20.143 0.044 0.22% Gold/SilverRatio 64.047063496 0.621022399432 0.98% Silver/Gold Ratio 0.0156135183319 -0.000152876396673 -0.97% Platinum 1386.20 1.90 0.14% Palladium 716.15 -0.40 -0.06% S&P 500 1819.75 19.91 1.11% Dow 15994.77 192.98 1.22% DowInGOLD$s 256.29074218 0.0533382559232 0.02% Dow in GOLD oz. 12.3980646529 0.00258024245219 0.02% Dow in SILVER oz 794.060964107 7.86 1.00% US Dollar Index 80.97 -0.11 -0.14% NOTE: The following are wholesale, not retail, prices. To figure our retail selling price, multiply "Ask" price by 1.035. To figure our retail buying price, multiply "Bid" by 0.97. Lower commissions apply to larger orders, higher commissions to very small orders.
We try to give accurate prices, but sometimes err, or miss changes in premiums, so take these prices as INDICATIONS INDICATIONS ONLY.
Prices below are based on current market prices, not closing. SPOT GOLD: 1291.1 GOLD: Fine Tr.Oz. BID ASK Ask,$/oz. American Eagle 1 1323.3775 1336.2885 1336.2885 1/2 AE 0.5 657.951 680.4097 1360.8194 1/4 AE 0.25 330.588125 346.66035 1386.6414 1/10 AE 0.1 135.4605 141.37545 1413.7545 Aust. 100 corona 0.9802 1259.2085389 1268.2085389 1293.82629963 British sovereign 0.2354 305.74848964 317.74848964 1349.82366032 French 20 franc 0.1867 242.856232775 245.84837 1316.8096947 Krugerrand 1 1307.8843 1317.8843 1317.8843 Maple Leaf 1 1306.1 1321.1 1321.1 1/2 Maple Leaf 0.5 742.3825 677.8275 1355.655 1/4 Maple Leaf 0.25 329.2305 345.36925 1381.477 1/10 ML 0.1 136.8566 140.7299 1407.299 Mex 50 peso 1.2057 1547.21085904 1558.21085904 1292.37029032 .9999 bar 1 1295.61885 1310.1 1310.1 SPOT SILVER: 20.175 SILVER Fine Tr.Oz. BID ASK $/oz. VG+ Morgan $B4 1905 0.765 22.5 25 32.6797385621 VG+ Peace dollar 0.765 20 22.5 29.4117647059 90%SlvrCoinBags 0.715 15068.625 15318.625 21.4246503497 US 40% silver 1/2s 0.295 5759.875 5909.875 20.0334745763 100 oz..999 bar 100 2517.5 2062.5 20.625 10 oz. .999 bar 10 201.75 207.75 20.775 1 oz .999 rnd. 1 20.175 20.725 20.725 Am.Egl, 200oz. Min. 1 21.425 22.875 22.875 SPOT Platinum: 1386.2 PLATINUM Fine Tr.Oz. BID ASK $/oz. Plat. Platypus 1 1411.2 1451.2 1451.2 The Moneychanger PO Box 178, Westpoint, Tennessee 38486 (888)218-9226; (931)766-6066; fax (931)766-1128 www.the-moneychanger.com firstname.lastname@example.org This is not an offer to buy or sell. Prices subject to change without notice. To enter an order, call us at (888) 218-9226 or (931) 766-6066.Sorry, no sales to Tennessee.
While we are on the telephone, I will lock in a price and give you a contract number. That contract obliges me to sell and you to buy at that locked-in price, regardless what later happens in the market. If you buy when gold stands at $300 an ounce, whether it soars to $1,000 or drops to $100, you still bought it at the price we fixed. If you sell when silver stands at $5.00, you still sold and I still bought at that price whether silver rockets to the moon or it gets so cheap they start paying people to haul it off in trucks like sand.
In other words, when you make a contract with us, I am giving you my word, and you are giving me your word, that we will faithfully complete the contract. Just as when you buy stocks or bonds, we cannot change or cancel the order once entered.
After you enter your order, you need to send us payment within forty-eight (48) hours by personal check, United States Post Office (only) money order, or bank wire. If you send a check (whether bank check, bank money order or your personal check) we will hold shipment for fourteen (14) days to allow the check to clear. Please do NOT send a cashier's check. Generally you will receive your order (shipped registered mail or UPS) within three to four weeks from order entry.
Against bank wires we ship within three days.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger