Following through on Friday's step one of a key reversal, silver & gold filled out step two today. More below.

US dollar index continues to wallow upward, a massive 4.8 basis points (0.6%) today to 79.563. Meaningless. Euro fell 0.38% to l$1.2930 (E0.7734), leaving it below the downtrend line. Not a hopeful sign. Yen, on the other hand, gained 0.41% to 128.48 c (Y77.842). This remains in the same old range.

Stocks couldn't do anything today. Dow lost 20.55 (0.15%) to 13,558.92. S&P500 lost 3.26 (0.22%) to 1,456.89. This looks bad after Friday's rise into new high territory. Sort of makes it look like a key reversal. But what do I know? I don't work on Wall Street OR wear shark skin suits.

Silver & gold followed through on that threat of a key reversal Friday by closing lower today. Silver lost 64.6c to close 3392.1 (Owch! Below 3400c) & gold gave up $13.40 to $1,762.10.

Silver's high today at 3418c began the day lower than its Friday low (3433.2c). Gaps down betray an underlying readiness to fall. At 64.1 cents silver did not fall terribly, but morale was whipped across the face with a cat o'nine tails by the close below 3400c. Ratio jumped from 51.364 to 51.947, also a bearish flag on the track.

Gold, too, gapped down over the weekend. Friday's low was $1,769.77 while today's high was $1,767.30. Critical level is $1,755. If gold breaks that level -- and it's now pointed in that direction -- it should tumble quickly toward $1,720.

Cheer up, long faces! This is good news, since we want to buy more silver & gold at reduced prices, and now should get the chance.

On 24 September the US congress established the office of US Attorney General. That wasn't a good idea.

On 24 September 1769 a panic on Wall Street ruined thousands. Jay Gould and James Fisk were trying to corner the gold market, President Grant found out who had been bought in his administration, & ordered enough gold sold to break them. I suppose even a blind squirrel finds an acorn now & then.

Readers from 45 states have now ordered my new book, At Home In Dogwood Mudhole. Where are y'all, Delaware, Louisiana, Maine, & Rhode Island?

New orders came in from Belize, Hong Kong, Viet Nam, Portugal, Zimbabwe, Kenya, and Wales. Yes, in Tennessee we count Wales a country. And to our friend in Wales and Slovenia: your emails are being returned. We've got a solution. Email us.

I forgot to tell y'all that At Home in Dogwood Mudhole contains my own hand-drawn maps, like the map of the Massive Planned Pasture Adjustment. Inside you will also learn how to teach pigs to jump rope, terrorists in Wayne County, water-witching, and the Demon Cow. Read it, & if you don't think it's the best thing to come out of Tennessee since Davy Crockett, I refund your money & you can keep the book and use it to start fires with.

I am extending the same Special-Special Offer one more day. Be the first to order from your state or country, & you'll get two books for the price of one. Order at htty://bit.ly/ahidm-vol1

Better hurry. My generous gland is about to shut down.

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

This is not an offer to buy or sell. Prices subject to change without notice. To enter an order, call us at (888) 218-9226 or (931) 766-6066. Sorry, no sales to Tennessee.

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