Yesterday's gold rise (commentators & other know-nothings opined) resulted from the Federal Open Mouth Committee minutes which suggested/hinted/guessed that the FOMC won't hurry to raise interest rates or trim its balance sheet. [That trimming operation resembles a 500 lb. man deciding to shed 10 lb.] Yet today in the teeth of a roughly 20 basis point dollar index rise, gold jumped yet more -- just looking from yesterday's aftermarket to today's, about six bucks. Dollar and gold rising together. Hmmmm.
This bolsters my suspicion that it is NOT alone Trump and Kim Jing-Jong slapping each other that is pumping up gold, but gold's secret, underlying determination to rally. That points to tenacious gold strength.
Particularly, the US dollar index rose 13 basis points to 93.57, but in the aftermarket is trading about 93.65, 21 bips above yesterday. Some of y'all may already have suspected that no love is lost between the scrofulous, scabby, perverse, parasitical US dollar index and me, and your suspicions are correct. Yet I will admit, looking at this here chart, missing today's entry, http://schrts.co/OkJ5UT that the US dollar index seems to have bottomed early in August. It is outlining a bowl reversal, but must escape the lip at 94 to prove it.
Since I regularly look at markets over the SHORT term, here's a little seasoning to spice up y'all's LONG term perspective. Forget about the day to day moves. Entire financial mechanism of the United States and central banking is geared only toward inflating, and must inflate or die. Turning that upside down, inflate or die means "depreciate the dollar or die." They will create dollars like the sorcerer's apprentice until they drown the world in a sea of them, not to mention the venomous effects of their other economic policies related to the dollar.
Nobody's creating more gold or silver, although tiny bits are mined each year. Therefore, it is a lead pipe cinch, shooting fish in a rain barrel proposition that gold & silver will rise to levels that, if I dared to mention them, y'all would fit me for a strait jacket. That's the long term, and all else is hogwash.
Take that from a nat'ral born durn fool from Tennessee, for whut it's wuth.
Now stocks had one of them days that makes you just want to curl up in a ball and die. Dow dove 274.00 or 1.24% to 21,750.87 while the S&P500 lost 1.54% (38.05 points) to 2,430.06.
Behold, the Dow chart, http://schrts.co/Q6KUW0 and the S&P500, http://schrts.co/vtdPMb
First, gaze ye upon the Dow. Alone among stock indices, it formed a broadening top but threw over the top boundary, a frequent topping event. Traded back down to the boundary, rallied yet again to a lower high, then today collapsed, plunging though the 20 DMA and the megaphone's to boundary. Oh, yeah, the uptrend from November 2016, too. Sicker'n a dog puking up strychnined meat.
Next, ponder the S&P500. It never threw over the top megaphone boundary, which stopped it cold. Collapsed on 10 August, rallied back up to the trend line it had just cracked, kissed it good-by, then today sank through its 50 DMA to a new low. Looked like a man trying to swim in a chain mail suit.
Not to heap up a superfluity of evidence, but the Dow Transports today closed below their 200 DMA, as did the Russell 2000, while the Nasdaq Composite & the Nasdaq 100 fell through their 50 DMAs.
Gravity -- reality -- hath taken hold.
Let us now twist our heads the other way, away from paper & electrons & insubstantial assets & moonbeams, to silver & gold. Yesterday gold closed Comex at $1,276.90, up a tidy $3.20, but when the FOMC minutes came out after the close and wishy-washed around, aftermarket gold shot up to $1,282. Today gold continued the attack, gaining over yesterday's Comex close $9.50 (0.74%) to $1,286.40.
Comex silver yesterday rose 22.7¢ to 1691¢ then also got an FOMC boost to 1706.5¢. Today silver rose another 0.8% to 1703¢. Meanwhile platinum & palladium are running razorback hog wild.
Gold chart lies right here, http://schrts.co/MDd6E7
Thrice since April hath gold tested $1,300, and here it tests again -- third time's the charm. A successful break through at $1,300 will bring buyers swarming.
Silver's chart here, http://schrts.co/o96FnV is not whispering but SHOUTING "Higher prices!" Silver is pounding on its 200 DMA and that 1725¢ barrier. Past 1725¢ it will shoot up, & that likely will begin tomorrow.
The awaited rally in silver & gold continues to roll out. Won't see these prices again.
SPECIAL OFFER NO 1: American Eagles & 1/10 Eagles
Premiums have plummeted on US American Eagle gold coins. I have bought more than I want to stock, so am making this little offer;
With gold at $1,288.30, I can sell Four (4) each one oz. gold American Eagles at $1,347 each with Ten (10) each 1/10 oz gold American eagles at $142.75 each, a total of $6,815.50 + 35 shipping or a grand total of $6,850.50
I have Six (6) lots only, and cannot sell at these prices once that stock is exhausted. That's 5.0000 troy ounces of gold total at a premium of 5.8% average. is 4.6% and
SPECIAL OFFER NO 2: U.S. $5 & $10 Gold Commemoratives
these stunning proof coins are so cheap It makes me gasp. I have Four (only) lots of Four (4) Each US $5 gold commemoratives (0.2418 troy ounce fine gold) and One each US$10 gold commemorative (0.4838 troy ounce fine gold).
Four (4) US$5 gold commems at $323.50 and One (1) each US $10 gold commem at $647 makes one lot cost $1,941.00, plus $35 shipping equals a grand total of $1,976.00. That's a total of 1.4510 ounces of gold at 3.8% premium over the melt value.
Sorry, I have five lots only, and these prices are good for those coins only.
As always, if you order multiple lots I charge only one shipping fee.
All sales are on a first come, first serve basis. Please do not call us or reply to this email. Email your order, INCLUDING your name, address, and phone number, to firstname.lastname@example.org.
Sorry, we will not take orders for less than the minimum shown above.
All sales on a strict "no-nag" basis. We will ship as soon as your check clears, but we allow One week (7 days) for your check to clear. Calls looking for your order two days after we receive your check will be politely and patiently rebuffed. ORDERING INSTRUCTIONS:
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If you break your word to us, we will never again do business with you.
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Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger