The Moneychanger
Daily Commentary
Wednesday, 28 August a.d. 2013 Browse the commentary archive

Y'all remember all the phony evidence the Bushites floated to justify invading Iraq? I don't know why I'd be a-thinking' of that, onless it might be the present Woof-woof the Obamites are a-barkin' over Syria. Why, hear them tell it that Syrian regime is the worst to come along since the devil hisself. Now why would I think about Roosevelt and how he ordered all those ships into Pearl Harbor after Naval Intelligence had cracked the Japanese Purple Code in September and he knew they planned to attack Pearl Harbor? Or the Tonkin Gulf Incident? How do you spell "false flag operation"?

Of course, only a natural born durned fool from Tennessee would doubt the A'mighty federal government!

Today's course in silver & gold remind me of that last pause under $1,380, just moving sideways, waiting to rise more.

Gold dropped $1.60 (0.1%) to $1,419.00 while silver gave back 26 cents (1%) to 2439.10. Silver's high hit 2512c, gold's $1,427.65.

OR, if perhaps silver & gold have completed this move up, they might enter now a shallow correction. Say gold backed off 25% of its recent rally, that might take it back to $1,370. If silver lost 38% of its gains off the 1817c low, the would take it back to 2250c. Of course, if gold breaks through $1,425 tomorrow and silver through 2500c, clearly it's not correcting.

Slightly longer term targets remain $1,550 and 2650c.

Stocks dead-cat bounced today. Dow added 48.38 (0.33%) to end at 14,824.51. S&P500 added 0.27% or 4.48 points to 1,634.96. All by itself, that signifieth nothing.

Dow in gold rose 0.44% to 10.447 oz (G$215.96 gold dollars). Way oversold but falling faster & faster anyway.

Dow in silver gained 8.37 oz (1.40%) to 607.79 oz. Also oversold but showeth ne'er a sign of turning up.

Dollar Index is floundering and flopping. Up 0.32% or 24.8 basis points to 81.415 -- neither hot nor cold. 200 DMA stands above at 81.65, so the dollar index lies a ways from rally mode.

Euro lost 0.38% today to $1,3341 and has now stepped under its 20 DMA, first sign of a downturn. The yen, currency of choice for traders who want to hurt themselves, dropped 0.64% today after gaining 1.51% yesterday. Closed 102.41 cents/Y100.

On this day in a.d. 430 died Augustine of Hippo, one of the most influential theologians in the history of the Church. & one of the most influential thinkers in Western history. Not coincidentally, the city of St. Augustine, Florida was founded this day and named for him. He, being dead, yet speaketh.

Someone called and asked about the all natural deodorant I recommended not long ago. If you want to minimize your exposure to aluminum, this helps. I've been using the stuff for about 4 months. It works, and you don't have to use it every day. You can order at www.no-bo.com. Catchy name, huh?

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
28-Aug-13 Price Change % Change
Gold, $/oz 1,419.00 -1.60 -0.11%
Silver, $/oz 24.39 -0.26 -1.05%
Gold/Silver Ratio 58.177 0.549 0.95%
Silver/Gold Ratio 0.0172 -0.0002 -0.94%
Platinum 1,539.20 8.00 0.52%
Palladium 746.05 -3.10 -0.41%
S&P 500 1,634.96 4.48 0.27%
Dow 14,824.51 48.38 0.33%
Dow in GOLD $s 215.96 0.95 0.44%
Dow in GOLD oz 10.45 0.05 0.44%
Dow in SILVER oz 607.79 8.37 1.40%
US Dollar Index 81.42 0.25 0.31%
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: 1,421.50      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,452.77 1,467.70 1,467.70
1/2 AE 0.50 724.46 748.78 1,497.55
1/4 AE 0.25 362.23 381.50 1,525.98
1/10 AE 0.10 149.15 155.65 1,556.54
Aust. 100 corona 0.98 1,386.39 1,397.39 1,425.61
British sovereign 0.24 336.63 348.63 1,481.01
French 20 franc 0.19 265.39 272.39 1,458.99
Krugerrand 1.00 1,435.72 1,447.72 1,447.72
Maple Leaf 1.00 1,436.50 1,451.50 1,451.50
1/2 Maple Leaf 0.50 817.36 746.29 1,492.58
1/4 Maple Leaf 0.25 362.48 380.25 1,521.01
1/10 Maple Leaf 0.10 150.68 154.94 1,549.44
Mexican 50 peso 1.21 1,701.76 1,714.76 1,422.21
.9999 bar 1.00 1,426.48 1,437.48 1,437.48
SPOT SILVER: 24.43      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 25.50 28.00 36.60
VG+ Peace dollar 0.77 21.50 25.00 32.68
90% silver coin bags 0.72 18,361.20 18,861.20 26.38
US 40% silver 1/2s 0.30 7,015.10 7,165.10 24.29
100 oz .999 bar 100.00 2,453.00 2,518.00 25.18
10 oz .999 bar 10.00 245.30 251.80 25.18
1 oz .999 round 1.00 24.53 25.28 25.28
Am Eagle, 200 oz Min 1.00 25.68 27.43 27.43
SPOT PLATINUM: 1,539.20      
PLATINUM Fine Tr.Oz. BID ASK $/oz
Plat. Platypus 1.00 1,549.20 1,579.20 1,579.20
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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.

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