The Moneychanger
Daily Commentary
Tuesday, 25 February a.d. 2014 Browse the commentary archive

I'm sorry I missed sending y'all a commentary yesterday, but I had to finish my monthly Moneychanger newsletter for paid subscribers. It's available for download at www.the-moneychanger.

Yesterday raised many questions for stocks. Nasdaq & Nasdaq 100 rose to new high closes, S&P500 made a new intraday high. Can the Dow follow? It's lagging far behind.

Stocks opened lower today then about 11:00 tried to beat yesterday's prices without any success. Indices all dropped today, stalled at the last highs. That's not to say they can't go higher.

Dow today lost 27.48 (after adding 102.83 yesterday) to close at 16,179.66. S&P500 lost 2.49 (after gaining 11.46 Monday) to 1,845.12. Both have formed fatal broadening tops, but still make new highs before those megaphones exact their vengeance.

Dow in Gold & Dow in Silver are both way oversold, but are not showing any mind to turn up and correct. DiG dropped 0.52% today to end the day at 12.05 oz (G$249.10 gold dollars), still above the 200 DMA at 11.95 (G$247.03). DiS rose 0.23% (1.69 oz) to 736.68 oz, below its 742.26 oz 200 DMA and in full return-to-earth mode.

US Dollar index is not quite sorry as gully dirt, but it's closing in on it. Lost 6 basis points today (0.07%) to 80.19, simply moving sideways right above support at 80. Been locked in the same trading range since September. Now THAT'S ambition.

I just can't get excited about any of these nasty, scrofulous, scabby, fleabitten fiat currencies. The euro is clogged like the drain in a beauty parlor, can't go up and can't go down. Would have to top $1.3800 to unstop that drain, or drop below $1.3700. That nasty yen ain't no prize, either, dancing sideways over its 20 DMA. Ended today up 02.6% at 97.83.

Gold added $4.70 to the $14.40 it gained yesterday & closed Comex at $1,343, nearly at the high. Silver, however backed off 8.8 cents to 2196.3c.

After that brief pause last Thursday, gold resumed rising again today. Gold is nearing the October high at $1,362, but at the rate it's moving probably won't slow down for that. If it does slice clean through there without having to make two tries, gold will attract way more buyers. Gold is overbought, but can get more overbought, & the overboughtness can continue for weeks.

Silver ought to break out of its flag tomorrow and continue higher by at least another 100 cents. Next soul searching comes at 2300c, & if silver can break through that, well, it will knock on 2500c.

Every day adds more evidence that the long correction has ended. Y'all better be thinking about buying.

The world's biggest Bitcoin distributor, Mt. Gox, has gone off line, sunk beneath the waves of the future. Turns out Bitcoin has a quirk that allowed some dishonest souls to take Mt. Gox for nearly $400 million. Well, or take Mt. Gox' customers, as the case may be. It was not reported today that any owners of gold or silver who had taken physical delivery had been shut down or lost their metal to a computer program back door. (Whoo, hush! I am sailing awfully close to sarcasm.)

It's getting so there's so many tomfools in the world that I can hardly stand listening to the radio any more. Who lets these people off their leashes? I hear this morning the yankee government, which already meddles in everything, is forcing school cafeterias not to advertise soft drinks that might make kids fat. Wow. That's Michelle Obama's contribution to the national welfare. Trouble is, doesn't anybody worrying about piddling stuff like that notice that public education will make kids fat-heads? Look at what it done to me: I ain't nuthing but a nacheral born durn fool from Tennessee now, and before I went to public school I wuz a genius. And I went to school back when they still taught kids how to read and wore the tar out of you if you chewed gum, let along came to school with a shotgun and killed people. This world's too crazy for me to stay here.

On 25 February 1791 President George Washington signed a bill chartering the first Bank of the United States. Y'all look at that. The ink wasn't dry on the constitution good before those banks sneaked in there & tried to take a stranglehold on the whole country. Everybody was worrying about standing armies and the right to bear arms while the banks were sneaking in the back door stealing the whole economy. The more things change, the more they stay the same.

QUICK SPECIAL OFFER

I usually don't stock this many quarter ounce American Eagles so I need to square up my inventory right quick. I am pricing these to move, barely over wholesale.

This price is based on spot gold at $1,343 & spot silver at $21.963.

THE OFFER

Six each one-fourth ounce gold American Eagle coins at $364.50 each for a total of $2,187.00 plus $35 shipping for a grand total of $2,222.00. That's a premium of 8.6% over melt value.

NOTE: I will levy only one shipping charge per order no matter how many lots you buy.

Special Conditions:

First come, first served, and no re-orders at these prices. I will write orders based on the time I receive your e-mail. Send email to offers@the-moneychanger.com

Sorry, we will not take orders for less than the minimum shown above.

All sales on a strict "no-nag" basis. We will ship as soon as your check clears, but we allow Two weeks (14 days) for your check to clear. Calls looking for your order two days after we receive your check will be politely and patiently rebuffed.

It increases your chances of getting your order filled if you offer me a second choice, e.g., "I want to order Two lots but if not available will take One lot." ORDERING INSTRUCTIONS:

1. You may order by e-mail only to offers@the-moneychanger.com. No phone orders, please. Please do NOT order by replying to THIS email, because it will delay your email.

Please include your name, shipping address, & phone number in your email. Surprising as it is, we cannot ship to you without your address. Sorry, we cannot ship outside the United States or to Tennessee.

Repeat, you must include your complete name, address, and phone number. Our clairvoyant quit without warning last week, then I tripped, dropped, & smashed my crystal ball, & our fortune-teller is on strike, so I can no longer read your mind.

2. When you buy from us, we cannot later change or cancel the trade. We are giving you our word that we will sell at that price, & you are giving us your word that you will buy at that price, regardless what later happens in the market, up or down.

If you break your word to us, we will never again do business with you.

3. Orders are on a first-come, first-served basis until supply is exhausted.

4. "First come, first-served" means that we will enter the orders in the order that we receive them by e-mail.

5. If your order is filled, we will e-mail you a confirmation. If you do not receive a confirmation, your order was not filled.

6. You will need to send payment by personal check or bank wire (either one is fine) within 48 hours. It just needs to be in the mail, not in our hands, in 48 hours.

7. "No Nag Basis" means that we allow fourteen (14) days for personal checks to clear before we ship.

Want your order faster? Send a bank wire, but that's not required. Once we ship, the post office takes four to fourteen days to get the registered mail package to you. All in all, you'll see your order in about one month if you send a check.

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
25-Feb-14 Price Change % Change
Gold, $/oz 1,343.00 4.70 0.35%
Silver, $/oz 21.96 -0.09 -0.40%
Gold/Silver Ratio 61.148 0.457 0.75%
Silver/Gold Ratio 0.0164 -0.0001 -0.75%
Platinum 1,441.70 -12.00 -0.83%
Palladium 736.10 0.90 0.12%
S&P 500 1,845.12 -2.49 -0.13%
Dow 16,179.66 -27.48 -0.17%
Dow in GOLD $s 249.04 -1.30 -0.52%
Dow in GOLD oz 12.05 -0.06 -0.52%
Dow in SILVER oz 736.68 1.69 0.23%
US Dollar Index 80.19 -0.06 -0.07%
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: 1,340.20      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,379.07 1,387.11 1,387.11
1/2 AE 0.50 682.99 705.95 1,411.90
1/4 AE 0.25 341.50 359.68 1,438.70
1/10 AE 0.10 140.62 146.75 1,467.52
Aust. 100 corona 0.98 1,307.10 1,316.10 1,342.68
British sovereign 0.24 317.85 322.60 1,370.43
French 20 franc 0.19 252.09 255.07 1,366.18
Krugerrand 1.00 1,356.28 1,366.28 1,366.28
Maple Leaf 1.00 1,355.20 1,370.20 1,370.20
1/2 Maple Leaf 0.50 770.62 703.61 1,407.21
1/4 Maple Leaf 0.25 341.75 358.50 1,434.01
1/10 Maple Leaf 0.10 142.06 146.08 1,460.82
Mexican 50 peso 1.21 1,607.67 1,618.67 1,342.51
.9999 bar 1.00 1,344.89 1,359.20 1,359.20
SPOT SILVER: 21.85      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 25.50 27.50 35.95
VG+ Peace dollar 0.77 22.50 24.50 32.03
90% silver coin bags 0.72 16,048.18 16,298.18 22.79
US 40% silver 1/2s 0.30 6,252.53 6,402.53 21.70
100 oz .999 bar 100.00 2,189.50 2,239.50 22.40
10 oz .999 bar 10.00 218.95 223.95 22.40
1 oz .999 round 1.00 21.95 22.45 22.45
Am Eagle, 200 oz Min 1.00 23.35 24.55 24.55
SPOT PLATINUM: 1,441.70      
PLATINUM Fine Tr.Oz. BID ASK $/oz
Plat. Platypus 1.00 1,456.70 1,473.70 1,473.70
Home Questions & Answers Articles & Resources
The Moneychanger, P.O. Box 178, Westpoint, TN 38486
888-218-9226

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.

For complete details on how to buy from us or sell to us, please click here.