Look! The Silver Gold Calculator for Android is now available at the Android Marketplace. This app converts any amount in 20 different fiat currencies to silver and gold. Whatever country you re in, you can immediately calculate how you can pay a bill in silver or gold, 24/7. See the announcement at solari.com/blog/silver-gold-calculator-for-android-available-are-you-ready-for-%E2%80%9Cjust-do-it%E2%80%9D-currency/.

HOUSEKEEPING: I will be out of the office to celebrate Christmas so will not be sending commentaries tomorrow, 23 December, through Monday, 26 December. We will be in the office during the 12 Days of Christmas only for limited hours. Our regular schedule resumes 4 January 2012. Merry Christmas and may God bless & prosper y'all in 2012 and always!

Paid subscribers know how negative my outlook on silver & gold was when I published the December Moneychanger on 19 December. I HAVE CHANGED MY OUTLOOK. Here's is my changed outlook & strategy.

It now appears that gold MAY have bottomed at $1,562.50 & silver at 2812c. How will we know? Both metals will rally from here, reaching perhaps $1,675 on gold and 3200c on silver. Then they will react, correcting downwards toward but not necessarily all the way to those previous lows. IF they can hold those levels, perhaps not quite reaching those levels, AND then turn up again, THAT is our buy signal. If they cannot hold those levels, then we wait to buy. EITHER WAY, we will be buying soon because the bull market has NOT ended and this correction offers us an opportunity to load up the boat. Recent news out of Europe shows that the ECB will print as much money as necessary to try to float Europe out of its bank solvency crisis. In other words, it will repeat the Fed's 2008 inflationary paroxysm. The cause remains, the trend continues. Count on it, & ignore the self-appointed gurus who are prematurely announcing gold's funeral. As we say in the South, they are a "mite previous."

Markets are slowing down before the Christmas holiday. Nobody wants to go home for a long weekend with a big position, so they trim them down & things get quiet. Generally.

I'm writing this about 2:00 p.m., and stocks have inched higher. Dow has risen 45.65 (0.38%) to 12,153.42; S&P500 is up 8.74 (0.7%) to 1,252.46.

The Great Milestone for the Dow is at 12,200. If it fails there, it's curtains, because it will be the third time, and on charts, third time isn't the charm, it's the calamity.

US DOLLAR danceth yet with the 80 level, trading now down 7.8 basis points (0.1%) at 79.944. Appears that yesterday saw the low for the dollar's correction at 79.20. The uptrend line today stands a tad below that level, so the US dollar remains in its upward trend.

Euro lost a tiny 0.04% to 1.3045. It is destined for lesser things, say, 1.200. The yen is looking a bit iffy, stalled right on the bottom of the range as if trying to break down. Now at 127.93c/Y100 (Y78.17/$1).

Gold & silver both lengthened out their correction today. Gold fell another $3 to $1,608.90 and silver fell 19.7c to 2900.1c.

I'm not crying because this doesn't look bad. Markets go up, then they go down. The up part off the Monday lows looked like a market in agreement with itself. Fall from Wednesday peak looked like a market chastened and correcting, but not worried. Today should have marked the limit of the decline.

In any event, it's important for gold to hold on at the $1,600 level to confirm its intent to rise. Silver's level is not as critical to the whole metals complex right now, because silver is following and not leading. However, it gladdens my eyes that silver has for two days defended the 2900c level. To confirm gold it needs to hold on there, but that's not as critical to a bullish picture as what gold does.

The resistance-to-beat for gold now becomes $1,616, and for silver 2965c.

You've witnessed a fairly rare event, a metals low in December. Only about 40% chance of that.

Milestones of American Culture: On 22 December 1958 "The Christmas Song" ("Christmas Don't Be Late") featuring the electronic chipmunks Alvin, Simon, & Theodore reached No. 1 on the music charts. They don't make songs like that any more -- thank heaven.

On 21- 22 December comes the winter solstice in the Northern Hemisphere (summer solstice in the Southern Hemisphere). At the winter solstice the sun stands at its southernmost point, meaning this is the shortest day (and longest night) of the year. After the Solstice the days grow longer and the nights shorter, but not very quickly.

On 22 December 1989 Romanian dictator Nicolae Ceausescu was overthrown in a revolution. Far as I know, so far no one has ever mourned or complained. The revolution accorded him & his wife a two hour televised trial before executing them both.

Y'all enjoy your weekend!

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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