The Moneychanger
Weekly Commentary
Thursday, 6 January a.d. 2011 Browse the commentary archive
Here's the weekly scorecard:
  30-Dec 6-Jan Change % Change
Silver, cents/oz. 2,787.50 2,865.30 77.80 2.8
Gold, dollars/oz. 1,565.80 1,616.10 50.30 3.2
Gold/silver ratio 56.172 56.402 0.230 0.4
Silver/gold ratio 0.0178 0.0177 -0.0001 -0.4
Dow in Gold Dollars (DIG$) 161.30 158.10 -3.20 -2.0
Dow in gold ounces 7.80 7.65 -0.15 -2.0
Dow in Silver ounces 438.30 431.37 -6.93 -1.6
Dow Industrials 12,217.56 12,359.92 142.36 1.2
S&P500 1,257.60 1,277.81 20.21 1.6
US dollar index 80.21 81.26 1.06 1.3
Platinum 1,393.30 1,401.00 7.70 0.6
Palladium 649.50 613.20 -36.30 -5.6

Y'all don't miss my special offer below.

Scoreboard don't lie. Silver & gold had a good week despite the US dollar index's 1.3% gain. Stocks added big time this week, then practiced subtracting, & Friday ended lower than Monday. Palladium got hit on the head with a sledge hammer. Gold/Silver ratio is edging up toward our 57.5 target.

Somebody has floated the rumor out there that "Bernanke is going to devalue the dollar 40%." This reminds me of the man who stands on the front porch with a shotgun, fiercely daring anyone to steal his property while out the back door the thieves are loading his furniture & appliances into a moving van. Since 2001 the US dollar has dropped from 121 to 81, or 33%. While y'all are worrying about the Bernancubus devaluing by 40% SUDDENLY, he & the Greenspan have already devalued it SLOWLY by 33%.

Rumors & internet hysteria -- they merely misdirect your attention from what's important. Wonder what department in the US government is responsible for floating rumors? Disinformation, the Soviets used to call it.

INCOMPREHENSIBLE -- that's what my friend Catherine Fitts warned me today is coming in 2012. What you hear grows more incomprehensible as more and more commentators fail to comprehend what is happening. Economy ain't recovering, cavalry ain't coming but more inflation is. And it mattereth not which of the flyweight nitwit smoothtalkers is elected.

STOCKS today dropped a little, giving up more of this week's gains. Dow closed 12,359.92 55.78 (0.45%) lower than yesterday's close and 37.46 lower than Monday's. S&P500 today closed at 1,277.81, down 3.25 (0.25%).

Stocks may rally before the end of the month as high as 12,600, maybe 200 points higher on a spike, but that will limit it. Rest of the year will fill stock investors with weeping, wailing, teeth-gnashing, & hair-pulling.

US DOLLAR INDEX gained 32.8 basis points today (0-.42%) to 81.264. Dollar has gained 111 basis points in two days, a sign that this week's upside breakout was genuine and has some legs. Should overcome 81.50 early next week and march toward 83.50. Nice Government Men must be puking in their wastebaskets.

Not to mention the European NGM. Euro fell 0.58% today to 1.2713, riding the roller coaster toward 1.2000. Eventually this will cause the US NGM to puke in their wastebaskets, as this competitive currency devaluation (Shades of the Great Depression!) makes US exports dearer. Japanese NGM showed this week they wouldn't abide a rising currency. Closed today 129.93c/Y100 (Y76.96/$1), up 0.19% but contained for the nonce.

Gold had a strong week and so did silver, but silver kept not pace. Today gold lost $3.30 (-.2%) to close Comex at 1,616.10 while silver lost 61.2c (-2.1%) to close at 2865.3

Yet, behold the week! Gold rose 3.2% & silver augmented 2.8% (I threw that in there for you engineers).

Highs for gold today came at $1,631 & for silver at 2945.2c. Lows were 2862c & 1608.75.

This week $1,625 stopped gold. It will back off, then charge at that same mark again. This rally should take gold to $1,870 at least before it seriously corrects.

Bottom for gold has probably been seen, for silver I'm not as sure. Bottoms for both will be behind us by 1 March 2012.

There's a tendency -- not always followed -- for silver & gold to bottom within a few days of each other, which also means the gold/silver ratio tops around their bottoms. HOWEVER, sometimes that peak might lag 30 - 60 days as gold stays flat & silver keeps eroding. Ratio will likely repeat that staggered performance, & 'twill be a fall in silver that takes the ratio down sooner than a big rise in gold.

This bottom picking for silver is becoming a risky and unprofitable business. Watch it closely, buy more as it falls. May not see any price below 2622.

This week 2960c stopped silver, but it has held on three days refusing to drop back below 2850c. Break of that 2850c would take silver down a couple of bucks, break of 2960c would take it up two, maybe three bucks.

Silver & gold remain in a primary uptrend (bull market). This correction offers y'all a chance to load your boats again, cheap.

On 6 January 1720 the Parliamentary Committee of Inquiry on the South Sea Bubble published its findings. Surprise, it was a whitewash. I love our tradition-minded congress, which keeps the whitewash coming nearly 300 years later.

Today is Epiphany or the Feast of the Three Kings celebrating the visit of the three magi to the baby Jesus. SPECIAL OFFER

U.S. $5 & $10 modern commemoratives.

These are US $5 and $10 gold commemoratives minted to the ancient standard over the past 20 years.

The US gold $5 commemorative contains 0.2418 oz gold and costs US$404.75 while the US gold $10 commem contains just twice as much gold, 0.4838 oz, and costs US$809.50.

Premium over gold content value for these is a tiny 3.5%.

I will sell lots of Five (5) each $5 gold commems ($404.75 each) for $2,023.75 + $25 shipping = $2,048.75 per lot. A $10 gold counts as two $5 golds, so you can order one $10 and three $5s and that equals five $5s.

I reserve the right to mix the orders as suits me, but have mostly $5s, so you'll most likely get those.

Limit ten (10) lots per customer.

Special Conditions:

First come, first served, and no re-orders at these prices. I will write orders based on the time I receive your e-mail.

We will not take orders for less than the minimums shown above.

All sales on a strict "no-nag" basis. We will ship as soon as your check clears, but we allow Two weeks (14 days) for your check to clear. Calls looking for your order two days after we receive your check will be politely and patiently rebuffed. If you want faster shipping, please send a wire.

Spot gold basis for all prices above is $1,616.10 ORDERING INSTRUCTIONS:

1. You may order by e-mail only to . No phone orders, please.

Your email must include your complete name, address, & phone number. We cannot ship to you without your address. Sorry, we cannot ship outside the United States or to Tennessee.

Repeat, you must include your complete name, address, and phone number. Our clairvoyant quit without warning last week and we can no longer read your mind.

2. Orders are on a first-come, first-served basis until supply is exhausted.

3. "First come, first-served" means that we will enter the orders in the order that we receive them by e-mail.

4. If your order is filled, we will e-mail you a confirmation. If you do not receive a confirmation, your order was not filled.

5. You will need to send payment by personal check or bank wire (either one is fine) within 48 hours. It just needs to be in the mail, not in our hands, in 48 hours.

6. We allow fourteen (14) days for personal checks to clear before we ship. If your hurry is greater than that, you can send a bank wire. Once we ship, the post office takes four to fourteen days to get the registered mail package to you. All in all, you'll see your order in about one month if you send a check.

Y'all enjoy your weekend!

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

— Franklin Sanders, The Moneychanger

Your source for gold and silver. Read our latest reviews and testimonials.
Market Snapshot See more charts and market data
6-Jan-12 Price Change % Change
Gold, $/oz 1,616.10 -3.30 -0.2
Silver, $/oz 28.65 -0.61 -2.1
Gold/Silver Ratio 56.400 -0.103 -0.2
Silver/Gold Ratio 0.0177 -0.0004 -2.1
Platinum 1,401.00 -2.20 -0.2
Palladium 613.20 -4.75 -0.8
S&P 500 1,277.81 -3.25 -0.3
Dow 12,359.92 -55.78 -0.4
Dow in GOLD $s 158.10 -0.37 -0.2
Dow in GOLD oz 7.65 -0.02 -0.2
Dow in SILVER oz 431.37 7.11 1.7
US Dollar Index 83.26 0.33 0.4
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: 1,616.60      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,658.63 1,673.63 1,673.63
1/2 AE 0.50 816.38 848.72 1,697.43
1/4 AE 0.25 412.23 428.40 1,713.60
1/10 AE 0.10 171.36 179.44 1,794.43
Aust. 100 corona 0.98 1,567.16 1,581.16 1,613.10
British sovereign 0.24 380.55 387.55 1,646.34
French 20 franc 0.19 301.82 308.82 1,654.09
Krugerrand 1.00 1,636.00 1,651.00 1,651.00
Maple Leaf 1.00 1,628.60 1,649.60 1,649.60
1/2 Maple Leaf 0.50 800.22 840.63 1,681.26
1/4 Maple Leaf 0.25 400.11 428.40 1,713.60
1/10 Maple Leaf 0.10 160.04 174.59 1,745.93
Mexican 50 peso 1.21 1,935.33 1,951.33 1,618.42
.9999 bar 1.00 1,622.26 1,633.26 1,633.26
SPOT SILVER: 28.66      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 23,161.78 27,500.00 35.95
VG+ Peace dollar 0.77 22,661.78 27,000.00 35.29
90% silver coin bags 0.72 20,273.83 20,598.83 28.81
US 40% silver 1/2s 0.30 7,863.23 8,163.23 27.67
100 oz .999 bar 100.00 2,890.50 2,930.50 29.31
10 oz .999 bar 10.00 286.55 306.55 30.66
1 oz .999 round 1.00 28.76 29.51 29.51
Am Eagle, 200 oz Min 1.00 30.41 30.91 30.91
SPOT PLATINUM: 1,401.00      
PLATINUM Fine Tr.Oz. BID ASK $/oz
Plat. Am Eagle 1.00 1,401.00 1,501.00 1,501.00
Home Questions & Answers Articles & Resources
The Moneychanger, P.O. Box 178, Westpoint, TN 38486
888-218-9226

Copyright Notice

© 2015 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

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.

For complete details on how to buy from us or sell to us, please click here.