Some things ought to be against the law, like Ian Lamont's Fudge Sauce from www.slickepott.com. I did him a tiny favor, & this morning arrived a sample of his Slickepott all natural Fudge Sauce AND his Caramel Sauce. No conceivable way that these will survive long enough for me to take them home to Susan tonight. There they sit on my desk, staring at me, daring me to open the jars. Best keep quiet, Fudge Sauce, and you, too, Caramel: I have a SPOON, and I know how to use it.

If the US dollar index was my only friend, I'd shoot myself. Treacherous doesn't begin to compass it. Friday & in European trading early today the dollar was plumb -- and I mean plumb -- flat. Right on the bell at 10:30 New York time the dollar index fell off a cliff at 79.75, painted a pennant half way down, then resumed plunging to 79.35.

Today's plunge broke the 50 DMA (79.63) but trading now at 79.434 (down 33.2 or 0.43%) the dollar index has not crossed below its 20 DMA (79.36).

Although the dollar index rose above its last low on this current move, if it stops here it will only confirm a downtrend. Looking at today's action, the chart has not been fractured, & dollar could continue rising. But if it falls much below that 79.36, it will probably revisit 78.50.

Like a bad child when his mama's sick, the Euro took this occasion to run hog wild. Gained 0.48% to $1.3242.

The Japanese yen today closed just where it was on Friday, 120.01c/Y00 (Y83.33/US$1). Yen has definitely turned, though, after a 119.14c low.

Sometimes I get knotted up because I can't explain to people why I won't recommend stocks. Today I went to an inflation calculator for an example. Dow topped in January 2000 at 11,722. Corrected for inflation, just to be at the same level the Dow would need to be at 15,500. BWDIK? I'm just a natural born fool from Tennessee.

That sort of casts another perspective on today's stock action. Dow gained a grandiloquent 6.51 (0.05%) to 13,239.13. S&P500 rose 5.58 (0.4%) to 1,409.75. When it falls, it will drop like a plum bob out of a C130 cargo plane at 25,000 feet.

Gold & silver kept on recovering today. Silver added 35.3c to close just under 3307c at 3292.6. Gold broke through $1,660 and added $11.40 to end at $1,666.90.

Five day chart shows that since Wednesday gold has traced out a slow uptrend with higher lows & higher highs. Now gold has bumped its head against the downtrend line from the 29 February high, and the 200 DMA also stands at $1,680.76. Should gold break through them both, especially on the first try, it will scoot.

By the way, Gold has formed another falling wedge, & y'all recall that wedges always break out the OPPOSITE direction from the way they point.

Gold is trading out into the point of that wedge, & something will break soon, probably this week, up or down. Time for lower lows is rapidly draining away.

You know, that silver has already made a correction greater than 50%. The 300 & 200 DMAs are kissing, which sometimes marks an upward turning point. If silver should close above 3450c, stop waiting and buy. Today it hit the 50 DMA and stopped, but looks strong still. Can't call a bottom, though, until silver confirms a bottom some way.

In one of the few truly patriotic acts of any senate since the end of President Buchanan's term, on 19 March 1920 the US Senate rejected American involvement in the League of Nations. Unfortunately the same senate was not around when the United Nations, GATT, & NATO were voted on.

On 19 March 1900 Archeologist Arthur John Evans began excavation the palace at Knossos in Crete. Knossos was a center of the Minoan civilization, & has been gloriously restored. It's worth a trip to Crete merely to take an overnight steamer from Greece to Crete, to see the sea, blue beyond words and lined with white foam. Add to that the people & scenery of Crete, and pile then Knossos on top of that -- my, you'll never forget THAT trip.

Tomorrow my bionic wife has to have a cataract- clouded lens removed from her eye and replaced. She has worn glasses since she was 8, but after this replacement and another a week later, she will only need glasses for reading. I would deeply appreciate y'all praying for success and safety in her surgery. Thanks in advance for your prayers.

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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