{!-- ra:0000000031501750000000006c3bc1a3 --} Daily Commentary, Monday, 20 October a.d. 2014
The Moneychanger
Daily Commentary
Monday, 20 October a.d. 2014 Browse the commentary archive

Markets inspired no excitement today, but I do wonder why silver keeps closing up only 2 cents or so but in the aftermarket climbs a dime or 20 cents.

Anyway, gold rose back to $1,244, up $5.70 on the Comex. Silver rose 2.2 cents to 1730.4 on Comex, but is now trading at 1739.

Stocks rose cosmetically, but technically they remain in a bull-strangling downtrend. Dow closed up 19.26 (0.12%) to 16,399.67 while the S&P500 gained 0.91% (17.260 to 1,904.02. All this changeth nothing, althought he S&P500 looks a little stornger than the Dow. Both will make this dead-cayt bounce, then resume their plunge.

US dollar index fell 24 basis points (0.29%) renewing its downtrend.

Increasing premium on US 90% silver coin suggests buying pressure is a-building in silver.

When gold breaks through $1,250, it will run. Stocks have another huge fall coming.

I have to travel the rest of this week, but will try to comment on Wednesday. If you are waiting to buy silver or gold, stop.

Argentum et aurum comparanda sunt —
Silver and gold must be bought.

— Franklin Sanders, The Moneychanger

At Home in Dogwood Mudhole
Market Snapshot See more charts and market data
16-Oct-14 Price Change % Change
Gold, $/oz 1,240.50 -3.60 -0.29%
Silver, $/oz 17.39 -0.03 -0.16%
Gold/Silver Ratio 71.342 -0.096 -0.13%
Silver/Gold Ratio 0.0140 0.0000 0.13%
Platinum 1,252.40 5.90 0.47%
Palladium 745.15 5.60 0.76%
S&P 500 1,862.49 -15.21 -0.81%
Dow 16,117.24 -24.50 -0.15%
Dow in GOLD $s 268.58 0.37 0.14%
Dow in GOLD oz 12.99 0.02 0.14%
Dow in SILVER oz 926.92 0.03 0.00%
US Dollar Index 85.04 -0.04 -0.05%
IMPORTANT NOTE: The following are wholesale, not retail, prices. To figure our retail selling price, multiply the "ask" price by 1.035. To figure our retail buying price, multiple the "bid" price by 0.97. Lower commissions apply to larger orders, higher commissions to very small orders.
SPOT GOLD: 1,239.95      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,274.67 1,283.35 1,283.35
1/2 AE 0.50 638.06 654.07 1,308.15
1/4 AE 0.25 319.03 333.24 1,332.95
1/10 AE 0.10 130.09 135.77 1,357.75
Aust. 100 corona 0.98 1,204.46 1,216.46 1,241.03
British sovereign 0.24 293.64 305.64 1,298.37
French 20 franc 0.19 233.23 236.30 1,265.66
Krugerrand 1.00 1,254.83 1,264.83 1,264.83
Maple Leaf 1.00 1,254.95 1,269.95 1,269.95
1/2 Maple Leaf 0.50 712.97 650.97 1,301.95
1/4 Maple Leaf 0.25 316.19 331.69 1,326.75
1/10 Maple Leaf 0.10 131.43 135.15 1,351.55
Mexican 50 peso 1.21 1,484.42 1,508.42 1,251.07
.9999 bar 1.00 1,244.29 1,255.95 1,255.95
SPOT SILVER: 17.39      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 24.00 27.00 35.29
VG+ Peace dollar 0.77 19.00 22.50 29.41
90% silver coin bags 0.72 12,791.35 13,077.35 18.29
US 40% silver 1/2s 0.30 4,938.30 5,088.30 17.25
100 oz .999 bar 100.00 1,729.00 1,789.00 17.89
10 oz .999 bar 10.00 178.90 179.90 17.99
1 oz .999 round 1.00 17.49 17.99 17.99
Am Eagle, 200 oz Min 1.00 19.14 20.39 20.39
SPOT PLATINUM: 1,252.40      
Plat. Platypus 1.00 1,277.40 1,317.40 1,317.40
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© 2013 Little Mountain Corporation, d.b.a. The Moneychanger. All rights reserved. May not be republished in any form, including electronically, without our express permission.

Warnings and Disclaimers

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 trend is up, targeting 16:1 gold/silver ratio or $195.66; stock's primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 16 ounces of silver. US$ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

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 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. For additional information, please see our Ten Commandments for Buying Gold and Silver.
  • One final warning: NEVER insert a 747 Jumbo Jet up your nose.

Explanation of Terms

The US DOLLAR INDEX is the 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$80-G$20 (4-1 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, and 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.

Other Important Information

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