Except for silver, everything was pretty calm today.

The US DOLLAR INDEX rose 11.5 basis points (0.139%) to end the day at 82.791. This saith not a lot, and certainly doesn't change the dollars immediate direction. Of course, the euro lost 0.28% to $1.2257 so maybe sobriety is again wreaking its hung-over vengeance on euro buyers. Yen also lost 0.25% to 127.91c (Y78.18), which also changes nothing, says nothing, & means nothing.

Now the hard part comes for ECB head Mario Draghi. He fired off the blarney cannon last week, spooking all the birds off the electric lines, but now he has do DO something. Take some action. And what precisely can he do to save the European economy, the euro, & the universe? He's shooting blanks.

Well, the lawyers have started circling. The first inevitable lawsuit in the Libor scandal has been charged as a small New York bank has filed suit alleging it was damaged by Libor price fixing. Y'all ain't seen nothing yet. Odds scream that not one but every bank colluded, & that the Big Brothers in that collusion were the Federal Reserve & the Bank of England, because they were. Central banks' reason for existing is to fix interest rates and inflate.

Have y'all ever seen a road-killed armadillo in the road that's been baking in the sun a couple of days? If you went and picked it up, that stuff that would run out is exactly what's inside the entire financial system, including banking & central banking: corruption & maggots.

STOCKS lost their merriment today when some suspicious soul asked exactly HOW Draghi was going to save the universe. Dow lost 2.65 (0.02%) & closed 13,073.01 after a ragged day. S&P500 lost 0.67 (0.05%) to 1,385.30. Friday's punch through resistance looks now like a fluke, but stocks still have plenty of time to come back, & make highs equal to or better than May highs before the Jaws of Death snap shut. Point to observe: the Jaws WILL snap shut, taking great mouthfuls of capital with them.

Gold baby-stepped up today, adding $1,70 to close Comex $1,619.70. Resistance at $1,625 stopped today's high cold at $1,624.70. Range was only $10, very small & quiet.

Yet gold has now made good its escape from the triangle (upside breakout) good for three days. Couldn't ask much more than that.

Silver leapt 2% (53.7 cents) to 2801.4c after a 2823c high. Lo, silver is joining the race! 'Tis not unusual for silver to lag in the first few yards of a rally, as it has the last 3 days. But today it o'erleapt that 2800c resistance. O, yes, the close at 2801.4c looks symbolic only, but it might have been the NGM painting the tape, too, since the aftermarket has boosted silver to 2815c and gold to 1,621.40.

Today's close confirmed silver's breakout from the triangle for the second day, and took silver above the 50 DMA (2777c). Full of hope.

By the way, yields on US treasuries staggered again today. That bubble is due to bust, but it's not yet clear whether the needle's been stuck in it. It surely will be, & when that begins the flight out of the dollar will commence.

Must cut this short. Internet acting up today. It's wonderful when it works, and burning bamboo splints under your nails when it isn't.

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

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