This will have to be short because tornados are touching down all around us & have already ravaged north Alabama not far away. Go home tonight and hug your wife or husband and children and all those you love, and tell them you are glad they are alive so you get to enjoy their company.

My wife Susan got locked in WalMart jail. That's right, they had a "Code Black" and locked down the whole place, herded everybody to the back of the store, & locked it down because of the weather. I thought I was going to have to get a habeas corpus to get her out.

In spite of the Bernancubus Surprise this week that whacked silver & gold on the head with a ball peen hammer, they didn't finish the week so badly, down 2.4% for silver and 3.7% for gold. Stocks have enjoyed all the ups and down of a flatiron this week, platinum & palladium went sideways-ish, while the dollar roared -- well, as much as a little mouse-burp gully-dirt-sorry paper currency created out of thin air and the imagination of central bankers can roar, which ain't too loud. Up 1.4%, but it caught all those euro & yen fans from behind.

Today the dollar added another 64.3 basis points to the 54.1 it gained on Wednesday. Closed over 79 at 79.432, a huge jump clean through the 20 day moving average (78.95) & nearly to the 50 DMA (79.67). Still, the dollar won't convince folks it's serious until it clears 80.12. Euro dropped 0.9% To 1.3198, & has clearly failed at the 50% correction level (about 1.3400). Yen brought the big surprise today by crashing AGAIN, to a new low. Closed 122.23c/Y100 (Y81.81/US$1), down 0.88%. As oversold as it is, it may fall further.

Central banks are doing a dance, & the Bernancubus Surprise was the opening music. They're trying to re-arrange something, but I don't quite see it yet. Since the whole world money supply might as well be one big balloon, maybe they are just shifting the attention from one to the other, the way the fellow with the three walnut shells & a pea distracts your attention.

Stocks are going nowhere, and you might as well accept the news. Dow today went sideways to lower with a puking-sick chart all day long. Down 2.73 to close at 12,977.57. S&P had a WORSE day, losing 4.46 (0.32%) to 1,369.63. Next week will bring pain, suffering, weeping, wailing, & gnashing of teeth for stocks.

After yesterday's strong recovery, silver & gold fainted today. Silver lost 113c to shutter Comex at 3448.1c. Gold gave back $12.30 to $1,708.80.

Gold has fallen back below its crucial 150 DMA (now $1,714.56) with its $1,708.80 close today. Down beneath the 40 DMA at $1,685.45 ought to act as a safety net should it fall further. Weak as today was, odds remain with gold since it showed itself so strong this week. However, a close below $1,696 shatters that.

If this plays out as corrections usually do, gold will climb to about $1,750, then plunge once again, either to $1,696 or a little lower. That will take 3 weeks or more to play out.,

Silver has also fallen through its 300 DMA (now 3484c) with today's 3448.1 close. This is not unusual when silver is recovering from a fall through its 300 DMA, judging from history. It can dance back & forth over the 300 DMA before it finally leaves it behind.

On silver's side is the chart that reveals silver has only fallen to the downtrend line (from August) that it broke through in February. This this move could be nothing more than a final kiss good-bye before silver takes off. If that's true, then silver won't fall much further. If not true, then it could hit 3200c.

Market is offering you silver & gold at reduced prices. Better buy while you can.

Today is the day of revolutions, some good, some not so good. On 2 March 1836 the Republic of Texas declared its independence from Mexico. And on 2 March 117 the Russian Revolution began when Czar Nicholas II abdicated.

And on 2 March 1938 the Russian Revolution began eating her children by handfuls when the trials of Soviet leaders -- Stalin's purges -- began in the USSR.

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.

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