Sorry, friends, I sent y'all no commentary the last two days, but I had to make a trip & forgot to warn y'all on Friday.

However, when y'all saw silver & gold slipping on Monday & Tuesday, y'all ought to have reckoned that it was a mere correction from the Friday high. A little lower I'll explain how y'all know that.

The Scrofulous US dollar (index) rose 14 basis points today to 82.663. This continues the silly sidewise move, saying nothing but that the Nice Government Men keeping it down to prevent panic from erupting in the euro.

Euro is green & sick as a ten-year old smoking cheap cigars. Spite of everything the central bank oxygen-wasters can do, euro keeps on nervously gapping down. They managed -- barely -- to close it above the 20 DMA ($1.2271) today at $1.2291, but still down 0.24%. 'Taint nothing going for the euro but wishful thinking. Oh, what pain will surge through the world if it breaks $1.1800!

Yen finally gapped down yesterday, away from that overhead resistance & nearly at the 50 DMA (126.53). Closed at 126.62 cents (Y78.98). Roll-over toward the earth's core is gaining speed.

Stocks spent another bewildered day, some indices rising, some falling, but no big moves in either direction. Dow looks like somebody's EKG, jerking up and down. Dow ended down 7.66 (0.06%) at 13,164.78 while the SYP500 gained 1.6 (0.11%) to 1,405.53.

Face it, stock fans: stocks have stalled. We may have seen the extent of this rally. All it's doing is building a rising wedge, which will most likely break out gravity-ward.

Silver & gold haven't been anything to brag on the last two days, but pulled out of the slump today.

Last Friday gold was tapping away at $1,625, but yesterday dropped below $1,600 and today tested that $1,590 support with a $1,591.40 low. That didn't last long. Gold puts its toes down & bounced along that bottom from 4:00 a.m. to 8:00 a.m. When Comex opened the doors the crowd rushed in with money and a will, like women headed to an After-Christmas Sale. Whoops, gold ran out of gas at $1,609 resistance, & closed at $1,603.70, up $4.30.

Don't y'all whine and complain about that, because gold's chart looks a bit like a key reversal, or at least a double bottom the last two days. What has it achieved? It has now twice successfully defended this $1,590-ish support. It's uptrend remaineth intact. The MACD momentum indicator looks lazy, but remember this is August, & nothing much happens for metals in August. Gold will likely creep through $1,605 tomorrow, maybe close above $1,610.

Silver's chart differeth from gold's only in the numbers on the index. Last three day's low struck today at 2748.8, but silver lingered not there. Ran straight for 28, but was driven back. Comex closed at 2780.5c, up 4.9 cents. Look for a couple of days sideway movement then a push through 2800c. Yet nothing significant will happen until silver breaks it's bounds at 2850c.

If I hang around here I don't see anything but my family and cows, sheep, pigs, & chickens, but travelling shows me the faces of America -- well, and lots of other body parts as well. My trip revealed to me two of America's great dilemmas. First, there is clearly a shortage of mirrors around the country, so people have no chance to look at themselves before they leave the house. I think this calls for Federal Government Mirror Stamps for everybody -- Mirror-Care, Obamer ought to call it. Second, the women's fashion industry is suffering a terrible cloth shortage. Poor things, I don't know how they keep from freezing to death, & lots of 'em are so desperate they've taken to wearing their underwear OUTside their clothes.

On 15 August 1863 the Confederate States Ship Tallahassee captured six yankee schooners. I bet the yankees were hot about that.

On 15 August 1947 after 200 years of British rule Indian became independent and was divided into India & Pakistan.

On 15 August 1861 East German workers began constructing the Wall of Shame, the Berlin Wall, to keep all the workers in the Workers' Paradise, or make it easier to shoot 'em when they tried to leave.

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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