I've been thinking about "innovation." I know that if you make automobiles, you've got to change the thing every year or people will stop buying it, no matter that it's all just a moveable sledge that takes you from one place to another and all that changing merely makes it more expensive and less reliable. Been thinking about "innovation" -- better word is "novelty" -- because I realize that I spend most of my time sending the same message, albeit in different words. There's a reason for that:

It's right. When it stops being right, I'll say something else. Till then, if y'all get bored with my saying pretty much the same thing, well, go listen to CNN or NPR or anybody on Wall Street who is always chasing novelty. To pick your pocket And let me know when they finally get it right. After all, I ain't nothing but a natural born durn'd fool from Tennessee.

Today's tale is quickly told. Same indecision holds sway in gold, stocks going nowhere (but dramatically), fiat currencies all sick, but the euro is sickest with the yen next.

US dollar index closed down 32.6 basis points (0.42%) to 77.60 but that don't mean spit in the wind. Clearly it has broken out thru 77.4 resistance & will move higher. Clearly the euro (closed 1.3604, up 0.44%) has a future at vastly lower price, around 120, and just as clearly the Japanese Nice Government Men are fighting like hyenas to keep the yen from appreciating as money tsunamis out of the euro looking for a refuge.

Europe continues to dither. Rumors now about breaking the euro up into tiers of countries. Germany is the go-wheel in everything, with most to lose if the euro become the defuncto. After all, the EU & the euro has brought Germany what 300 years of war could not. Beginning to look like a "managed crisis", although I am certainly not making Germany the Bad Boy in all this. The managers are cosmopolites, louyal to no nation and no interest but their own.

Dow rose 112.92 points or 0.96% to 11,893.86 but remains beneath its 200 dma (11,975). S&P rose 10.6 (0.86%) to 1,239.70.

Stocks: better'n burning up $1,000 bills with a match!

GOLD lost $32 by time Comex closed it at $1,758.90 today, but it held on to that $1,750 after a low at $1,736.30. Good, but I reckon it will drop again tomorrow. Course, only a fool would say anything about gold right now, with all the world's NGM working to keep it down and a world wide financial blow up driving it up. Never mind, after all the smoke clears, gold will still be headed higher.

$1,740 has now become the "must-hold" support.

SILVER lost only 25.3c today to close Comex at 3409.5. Low came at 3322c, high at 3430c. Ratio actually fell today (silver was stronger than gold) to 51.588 from 52.140.

Silver has now worked itself into a position where it must hold about 3325, because there stands the 20 dma (3333c) and the rising trend line. Break that & it must fall a stout ways, maybe to 3000c. On the other hand (to sound like an economist) if silver can hold that line, the whole picture changes, & everything begins to look up.

On 10 November 1801 Tennessee outlawed duelling. Don't come rushing into Tennessee slapping people in bars, though. Not many folks down here know they passed that law, and some of 'em plain don't care.

On 10 November 1885 Gottlieb Daimler's unveiled the world's first motorcycle. He later figured out he ought to add two more wheels.

On 10 November 1911 Andrew Carnegie formed the Carnegie Corporation, ostensibly for scholarly & charitable works, but in fact to fundamentally alter American society, producing through public education docile workers eager to consume. Whoops! I wasn't supposed to say that. Y'all don't tell the Hall Monitor, & whatever you do, don't buy John Taylor Gatto's book, "The Underground History of American Education." And don't go to www.johntaylorgatto.com/underground/.

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

— Franklin Sanders, The Moneychanger

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.

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