Today I must leave early, so am bringing you not the closes, but the prices at 1:00 p.m. CST. Metals prices are closes.

Market on Friday had to digest the week's gains, so didn't move very much. This can easily be charged off to traders flattening their positions before the weekend, and shows no trend change.

STOCKS are bumping up against an iron ceiling and cannot penetrate Dow 13,000. Don't know if top will come here -- although that's quite likely -- or in a week or two slightly higher. Looks to me that stocks have run out of steam and are rolling over.

But since stocks are in a bear market, I don't want to own them anyway.

Today's close marks a new low for the US dollar index, and argues that the downtrend will continue -- argues right forcefully. Euro rose 0.71% today to 1.3464. Move probably limited to 1.3630, a 61.8% correction of the preceding drop, but right here at the 50% level it might stop as well. No hope of good news from Europe. Yen gained 0.66% today to 123.69c (y80.85/US$1), but that's no surprise. Decline completed.

Silver & gold both backed away today, but after the week we've seen -- up 6.4% for silver & up 2.9% for gold -- who would that amaze?

Gold gave back $9.80 to close at $1,775.10 while silver gave up 21.8c to end at 3533.8c.

My friend MH & someone else wrote me today asking why I hadn't said anything about the upside down head and shoulders in silver & gold. Well, I am now going to say something about them.

If upside-down head and shoulders indeed, then gold is targeting $2,036 and silver 4335c.

Right, those are targets for this move presently underway. A lot of upside is left to this move.

When y'all are buying physical silver or gold, remember one thing: OVER TIME, PREMIUM ALWAYS DISAPPEARS. That's why I offer the chart below so y'all can compare your cost per oz.

I realize that many dealers will recommend you buy only the silver & gold American Eagles, but remember they are selling out of their inventory, not out of your best interest.

I've been at a market peak, & at the top nobody cares what KIND of ounces you have, only HOW MANY. Always stick with the lowest cost items, which right now means US 90% silver coin in silver & in gold, Austrian 100 coronas, Mexican 50 pesos, & Krugerrands.

And for heaven's sake, don't let anybody tell you, "It's different this time," because it never is. That's why the premium on US $20 gold pieces has collapsed in the last 12 years.

On 24 February 1803 the US Supreme Courted ruled itself to be the final interpreter of all constitutional issues. This is sort of like me declaring myself to be the final interpreter of how YOU may discipline your children.

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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