Th'other end of the see-saw dropped today -- the US Dollar index -- while the metals & stocks end rose. All this remains in a range, changing nothing.

Scabrous US Dollar index dropped toward the 82.20 bottom of this week's range, skidding to a low at 83.32. Closed at 82.378, down 29.3 basis points (0.38%). Dollar remains in a rigidly controlled range from 82.90 to 82.20. I think I smell ripe mackerel in the air. Whoops! Sorry, Nice Government Men, but y'all aren't too subtle lately.

This did, however, benefit the dying euro, which yesterday was threatening to vomit all over investors by breaking through the 20 day moving average ($1.2275). Euro rose 0.55% to $1.2356. This is like shocking a fresh corpse with jumper cables: it jumps, but 'tain't alive. Euro didn't quite reach its 50 dma ($1.2386).

Yen followed through downside leaving behind, well, if not a waterfall then at least a cataract. 'Twas enough to take it below the 200 DMA (126.40), closing down 0.51% at 126.00 cents (Y79.37). Rollover earthward is now confirmed.

STOCKS solidly advanced throughout the day. Dow added 0.69% (90.21) to 13,254.99. S&P out did the Dow rising 11.12 (0.79%) to 1,416.65.

Stocks are now drawing nigh this year's highs that posted a double top April 1 and May 1 at 1,422.38 & 1,415.32. Analogous prices for the Dow came at 13,297.11 and 13,338.66. If the Dow travelled all the way to the trend line left by those two tops, it might reach 13,450. Stocks have same chance of breaking through these tops & entering a new bull market that I have of winning $305 million Power Ball lottery. Well, maybe not quite that likely.

Gold raked in another $12.40 to close Comex at $1,616.10, while silver scooped up 40 cents to 2820.5c.

Today gold carved out the rest of a bottom, rising to the level where it broke off on Tuesday, about $1,615. This pattern resembles an upside down head & shoulders, and targets $1,640. But first, gold must pierce $1,625 - $1,630 resistance where it hath so oft been rebuffed. Close up around $1,625 tomorrow would be your first hint gold intends to slap back at the folks who have repeatedly slapped it around. Whether sooner or later, that will come.

Silver, on the other hand, rose a little higher than gold while tracing out the same pattern. Today's high at 2829c was slightly higher than Monday's 2820c. I know I sound like you're old 78 rpm record stuck in the same groove, but silver still needs to better 2850c to break away from gravity. Y'all know that can happen very quickly. Once silver crosses that line all those uppity shorts will panic & silver will blast away.

But first, it must breach the resistance between here and 2806c.

Time is running out to buy silver & gold at these prices. August draweth to a close.

From time I was 12 until I was 52 I lived in or around Memphis, but somehow missed falling in love with Elvis Presley. Don't even like his music. Therefore I was astonished when I picked up some Australian friends at the Memphis airport a few years ago when the first thing they wanted was to tour Graceland, Elvis' house. I was glad to accommodate them, but I had driven by there by there about a zillion times without ever stopping. I found out that people come from all over the world to spend their vacations there, sometimes spending 30 days just hanging around Graceland. Clearly, some things I just don't understand. On 16 August 1977 Elvis Presley died. Actually, many people think he never died. I know where he's hiding, but I'm not telling y'all.

On 16 August 1896 gold was discovered in the Klondike, at Bonanza Creek, Alaska.

"Plus ça change, plus c'est la même chose." The more things change, the more they stay the same. On 16 August 1777 France declared bankruptcy, which monetary troubles contributed to the later Revolution.

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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