Longer I hang round, the nuttier things get. Today Cyprus (a tee-tiny EU member, pop. 801,851, smaller than metro Memphis) told the EU they, too, need a bailout, and it may equal $12.5 billion, half the size of their economy. (I'm thinking about telling the EU that I need a bailout. I want $12 million, but I'll settle for $8 million. Okay, $6 in a pinch.)

More than that, the EU ministers are meeting in their 19th summit in the last couple of years. I told y'all this move was coming: more centralization. This new grand plan proposes the eurozone have its own finance minister, and that the member states give control over their budgets to some central authority and share responsibility for their debt.

WHOA! This is like you buying a $60 bottle of single malt Scotch, which you eke out to yourself a spoonful a week, and being ordered to share it with your brother-in-law, who drinks a quart of vodka every morning. Somebody's gonna get cheated in this deal.

Mercy! Y'all think I make this stuff up, don't you? I've been telling y'all for a long time that there are no adults in the building. Been gone for years.

US dollar index gave back a little today, losing 8.9 basis points (0.11%) to 82.361. It's okay, it cleared its 20 day moving average (DMA, now 82.31) yesterday, and floated above it today. Headed higher unless Big Ben the Criminal gets scared or needs to do his euro buddies a favor.

Yen surprised me today by advancing a teench (0.24%) to 125.83c/Y100 (Y79.47/US$1) and the 50 DMA (125.32). Remains in a downtrend with lower highs and lower lows, so needs to close above 128.77c to reverse the downtrend. When pigs fly.

Wow, here's some news: euro fell again today. Well, at least it was only 0.4% to $1.2495, but it stands below all its moving averages, RSI is headed down, MACD looks to be rolling over earthward. $1.2000, here we come!

'Twas a near thing in silver & gold today, but it pulled out. I said yesterday gold must not close below $1,558 nor silver below 2641 cents. Lo, I watched as gold worked its way from a $1,583.55 open down to $1,667.60 just before 11:00 a.m. Gold clambered up out of that hole, and didn't sink below $1,570 again. For about 15 minutes there I couldn't keep my eyes off the screen. On Comex gold lost 13.50 & closed $1,574. This works. Day after a strong advance (+21.50 yesterday) a market often gives back quite a bit. But I am still watching that $1,558.

Silver's chart mimicked gold's, falling from the open to a 2679.8 low just after 11:00 a.m. Never dipped below 2700c after that, and closed Comex 48.2c lower at 2703.8c.

Line in the sand left on today's chart -- & where the fight will take place tomorrow -- is 2720c. After that silver needs to better yesterday's close and punch through 2750c.

We are now in the middle of silver & gold's seasonal low window, which can fall from mid-June to mid-August, but more narrowly in June or July. Gold still must hold $1,558 & silver 2641. Watch 'em.

On 26 June 363 died the Byzantine emperor Julian the Apostate, so called because he tried to restore paganism and drive out Christianity. Oddly, as a young man he studied in Athens with Gregory of Nyssa & Basil the Great, later two of the Church's greatest theologians. His dying words are alleged to have been, "Vicisti, Galilaee," "You have won, Galilean."

On 26 June 1844 at the age of 54 John Tyler became the first US president to marry while in office. Julia Gardiner (then 24) was his second wife. The new stepmother was five years younger than Tyler's eldest daughter.

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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