My, O, my, I look at markets today & think with Voltaire's Candide, "This is the best of all possible worlds." Until it isn't.

I suspect that markets have hushed their mouths, covered their heads, and hunkered down because the Resplendent Ones of the Very Important IMF are meeting in Washington this weekend, and one never knows what the Resplendent might do to upset everyone's applecarts.

Thus markets moved little this week: gold down a twinch, silver up the same, stocks better a bit, & the dollar index make a new low today while the Euro perked up.

One (a suspicious one) suspects that news might have leaked about the Resplendent's plans because the dollar hit a new low today while the euro gained 0.64% to $1.3220, gapping up for a new high. On the other hand, another suspicious one might deduce the Resplendent manipulated the dollar lower & the euro higher to sell something or other at the VI IMF meeting. One with truly important concerns, like a sock drawer that needs re-arranging, would not care either way, since both the Resplendent & all their fiat currencies are sliding down the Way of the Dodo even as we speak.

Technically today's dollar index slide took the scrofulous US currency down to a new low for the move AND below its 20 day moving average, leaving the dollar looking event scabbier than usual.

The yen closed up 0.13% (nothing) to 122.66c (Y81.53/US$1), improving nothing, changing nothing.

I reckon someone in the Nice Government Men's cave decided that the Dow shouldn't finish a week below 13,000, so the Dow rose today 65.16 points to 13,029.26. S&P500 rose 8.22 to 1,376.92

Delude not yourself, neither hug to your breast the phantom of groundless hope. Dow is tracing out a head & shoulders reversal pattern & is now putting finishing touches on the right & final shoulder. Shouldn't rise again above 13,150, and when it crosses that neckline at 12,700, 'twill nose dive 600 points before you can say, "Bernancubus, call the NGM!"

Gold ranged today a meager $7.74, practically dead and not twitching. Rose $1.50 to $1,642.10, but fell $17 (1%) for the week.

Aha! What's that I see on a one year chart? Could that be a bullish falling wedge that began in March & neareth its completion? Why, yes, indeed it could be, and is. It also argues that gold will not again visit $1,600.

The sad time of this long gold correction since the high last August draweth to a close. It may yet be weeks away, but higher gold is coming soon. A break through $1,682 will prove it, a break below $1,600 gainsays it, but only for the nonce.

Silver contended against gold today, dropping 12.7c (Would you even pick up a sum that big, a dime & three pennies?) to close at 3164.4c. Range was passing narrow at 34c (high 3190, low 3156.1). Clearly, everybody has run for cover until the Resplendent have returned to their dens.

Silver, too, has formed a falling wedge since the March high, a formation that usually resolves in a rally. Silver needs to clear 3200c, then 3250c to prove a rally. Could drop as low as 3000c without violating the falling wedge. Must hold 3100c or visit that 3000c.

Time is growing full, time to stop waiting & start buying silver & gold.

On 20 April 1914 in Ludlow, Colorado a firefight broke out between striking miners and Colorado National Guard. From 19 to 25 people were killed, including two women and eleven children. The coal companies kept the miners, many of them Greek immigrants, in virtual peonage, and hired thugs from the notorious Baldwin-Felts Detective Agency as strikebreaking police. In retaliation for the massacre miners armed themselves and attacked dozens of mines, skirmishing with the Colorado national guard on a 40 mile front. In the end the strike cost 199 lives. Ludlow was almost, but not quite, the last deadly standoff between corporate power and miners. Unions, of course, can exploit workers just as badly as corporations, but if those miners had any way to protect themselves other than to organize in a union, it's not plain to me what it was.

To the corporations & Social Darwinists of that day, miners were dangerous communists. From their standpoint, they only wanted a decent wage and a safe life for their families & themselves.

On 20 April 1836 congress established the Territory of Wisconsin. Months earlier they had begun importing Germans to people the state, and so many arrived that they had to send the overflow into Minnesota. I have heard that even today, German is the official language of Wisconsin, but I don't know whether to believe that or not.

Y'all enjoy your weekend!

Argentum et aurum comparanda sunt —
Silver and gold must be bought.

— Franklin Sanders, The Moneychanger

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© 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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