The Moneychanger
Daily Commentary
Thursday, 8 November a.d. 2012 Browse the commentary archive

I've been rode hard & put away wet today, cause everybody in the world wanted to buy gold & silver. Hence I'll make this brief & won't be coy.

Today stocks and precious metals soundly confirmed yesterday's moves, stocks their breakdown, silver & gold their breakout toward the stars. You now have two day confirmation, & that's quite unlikely to lie.

US Dollar Index barely rose, but touched 81 again and ended up 1.3 basis points at 80.82. Hanging on ABOVE the 200 day moving average (80.65). That's bullish, yet silver & gold are rising like a junkyard magnet is pulling them upward. They have broken free and decoupled from the scrofulous dollar.

Euro sank another 0.24% to $1.2748 while the yen is raging upwards, up another 0.65% today to 125.90 cents per 100 yen. Closed above its 20 (125.80) and 200 (125.80, [sic]) day moving averages.

Stocks confirmed & re-affirmed their anti-Obama vote by dropping again today sharply. Dow lost 121.41 (0.94%) to 12,811.32 while the S&P500 lost even more, 17.02 (1.22%) go 1,377.51. Don't discount a possible dead-man surge still, that is, an illusory short rally back to 13,250, but stocks have thrown their dice & they came up snake eyes. Much more downside will follow.

Yesterday's tentative breakdown in Stocks in Gold accelerated today. Headed for Dow two ounces.

It creates a sort of illusion of solidity to quote daily metals closes from Comex because silver & gold trade 24 hours round the clock & the world. Today the aftermarket is especially vigorous, gold up $9 from the Comex close (now $1,734.67) & silver up 64 cents (3242c).

On Comex silver gained 58 cents to 3131c while gold burst through the 20 DMA & lateral resistance ($1,725) to close at $1,725.40. But it never stopped, as I said, and solidified that upside breakout in the aftermarket.

Gold closed today above its 20 DMA ($1,720.34) & reached out its hand for the 50 DMA ($1,740.29). Chart shows a clear reversal. Next resistance after $1,740 is $1,800, which gold will this time crack like a wrecking ball hitting a mobile home.

Silver, too, by day's end was trading above its 20 dma (3220c) and, having penetrated the downtrend line, has set its sights on 3550c. Can forty dollar silver be far away?

I repeat yesterday's urging: buy silver & gold now. Don't toy with this rally, because it's liable to slap you by running away. Only thing that would contradict that is a silver close below 3150c or gold below $1,720.

On 8 November 1870 Tennessee elected its first post-war Democratic governor (they were different then). The bloodthirsty Republican "Parson" Brownlow, whom Lincoln had appointed wartime governor of occupied Tennessee, had threatened to call out the militia & shoot every ex-Confederate, no doubt fuelling the desperation that led to forming the Ku Klux Klan. Only way the legislature could get rid of Brownlow was to elect him senator & send him to Washington. Once they did, they re-wrote the constitution & prevented any minister of the Gospel from holding any office of emolument in state government. That constitution remains in effect.

From 9:00 to 10:00 p.m. Eastern time on Friday, 9 November I'll be on the Christian Farm & Homestead Radio Show to talk about my new book, At Home In Dogwood Mudhole. You can listen here: Or, if you'd rather download the MP3 file later, you can find that right here:

Argentum et aurum comparanda sunt —
Silver and gold must be bought.

— Franklin Sanders, The Moneychanger

Your source for gold and silver. Read our latest reviews and testimonials.
Market Snapshot See more charts and market data
8-Nov-12 Price Change % Change
Gold, $/oz 1,725.40 12.20 0.71%
Silver, $/oz 31.81 0.58 1.86%
Gold/Silver Ratio 54.241 -0.617 -1.12%
Silver/Gold Ratio 0.0184 0.0002 1.14%
Platinum 1,538.50 3.00 0.20%
Palladium 613.55 4.00 0.66%
S&P 500 1,377.51 -17.02 -1.22%
Dow 12,811.32 -121.41 -0.94%
Dow in GOLD $s 153.49 -2.54 -1.63%
Dow in GOLD oz 7.43 -0.12 -1.63%
Dow in SILVER oz 402.75 -11.37 -2.74%
US Dollar Index 80.82 0.01 0.02%
IMPORTANT NOTE: The following are wholesale, not retail, prices. To figure our retail selling price, multiply the "ask" price by 1.035. To figure our retail buying price, multiple the "bid" price by 0.97. Lower commissions apply to larger orders, higher commissions to very small orders.
SPOT GOLD: 1,734.67      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,784.98 1,795.38 1,795.38
1/2 AE 0.50 884.17 913.74 1,827.47
1/4 AE 0.25 442.09 465.54 1,862.17
1/10 AE 0.10 182.04 189.95 1,899.46
Aust. 100 corona 0.98 1,691.82 1,702.32 1,736.71
British sovereign 0.24 408.34 412.34 1,751.66
French 20 franc 0.19 323.86 327.86 1,756.09
Krugerrand 1.00 1,760.69 1,777.69 1,777.69
Maple Leaf 1.00 1,744.67 1,759.67 1,759.67
1/2 Maple Leaf 0.50 858.66 902.03 1,804.06
1/4 Maple Leaf 0.25 429.33 459.69 1,838.75
1/10 Maple Leaf 0.10 171.73 187.34 1,873.44
Mexican 50 peso 1.21 2,074.59 2,091.59 1,734.75
.9999 bar 1.00 1,740.74 1,751.74 1,751.74
SPOT SILVER: 32.45      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 30,500.00 32,500.00 42.48
VG+ Peace dollar 0.77 30,000.00 32,000.00 41.83
90% silver coin bags 0.72 23,166.00 23,416.00 32.75
US 40% silver 1/2s 0.30 9,381.00 9,581.00 32.48
100 oz .999 bar 100.00 3,237.00 3,285.00 32.85
10 oz .999 bar 10.00 329.50 332.00 33.20
1 oz .999 round 1.00 32.30 33.00 33.00
Am Eagle, 200 oz Min 1.00 33.95 34.65 34.65
SPOT PLATINUM: 1,538.50      
Plat. Platypus 1.00 1,548.50 1,588.50 1,588.50
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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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