Mayhap I have not made myself entirely, pellucidly clear. I will therefore, try again.

1. Get out of IRAs & 401(k)s, and put the proceeds into physical silver or gold you hold in your own hands. Do NOT put the proceeds in anything else.

2. I do not recommend, or invest in, gold & silver stocks. Why? Because although the rationale for buying these mining stocks is that they offer leverage to the gold price, history shows that the precious metals mining stock indices, at least, do not outperform plain bullion. If they offer me no more leverage, then why would I take the extra risk above the gold price risk, namely, the enterprise risk? Answer: I wouldn't, so I don't buy them.

Yes, it is possible that SOME precious metals mining stocks will outperform the indices. Can you pick those? If not, you'd better find some great broker to pick them for you.

'Twas a marginal day, mumbling out of both sides of its mouth. Gold, silver, & dollar index all sailing awfully close to the wind.

All the drunks are sobering up again as this latest dose of Crisis-Cure Bust-skull wears off. Whoops! Turns out it won't keep you drunk forever after all. Turns out the crisis isn't solved after all, no matter how much Sarcophagus & Ferkel snuggle up to each other. Propaganda machine is plumping full-bore for more centralization.

Stocks knew not which way to turn today. With a last 45 minutes surge, Dow looks to have been the beneficiary of the beneficent Nice Government Men. After all, the level of the Potemkin stock market must be kept up.

Dow was down 100 early in the day, flirted with barely up/unchanged part of the day, then rose into the close. It ended 46.24 higher (0.38%) at 12,196.37, right at the 12,200 barrier. S&P500 rose 2.54 points or 0.20% to 1,261.01.

Y'all listen now: the Dow is smashing up against overhead resistance in the form of the neckline of a head & shoulders top formed during most of 2011. Could breach that slightly, but drag will be terrible, & won't make it much higher than 12,400 if that.

Confusion abounds: yesterday silver was up while gold fell, today just the opposite. Gold rose $13 today to $1,740.90. Silver fell 11.7c to 3255.5c, right at the bottom of my range.

During the day silver dipped as low at 3218 but came right. The bottomy looking formation left on the chart Friday - Tuesday remains intact. More, silver remains above that rising trend line (bottom of the even-sided triangle). Obviously silver is much more vulnerable to a downdraft than gold, but until it breaks that support the trend has not broken down. My job is to report, not to anticipate -- well, not too much, anyway.

Dollar flirted with the dowside, too, down 9.4 basis points to 78.405. Yet the cord is not yet broken.

I heard that the communists in the United States senate passed another bill to strip us mushrooms of 6th Amendment rights, 93 to 7. Makes it easier for them to define you as a "terrorist" administratively and so strip you of rights in advance before any trial or other "red tape." Y'all are not paying attention. They will keep on doing this to you until you say NO in some way that will get clear thru their muddled brains from one ear to the other.

On 7 December in 43 BC Marcus Tullius Cicero, the Roman statesman, was assassinated on the orders of Mark Antony. His oratorical powers were so great that they nailed up the hands he had gestured with in the Roman forum, to prove he was dead, I reckon. Cicero never could learn to be a politician, & paid the full price for cleaving to the truth. Antony struggled with Octavian (later the emperor Augustus) for supremacy, but Octavian out-maneuvered him. Shortly afterward, he proved how contemptible he was by committing suicide with Cleopatra, his paramour.

Empires just have no room for statesmen with outdated republican (small R) virtues. They grow, rather, traitors and assassins aplenty.

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

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