The Moneychanger
Weekly Commentary
Friday, 9 January a.d. 2015 Browse the commentary archive
Here's the weekly scorecard:
  2-Jan-15 9-Jan-15 Change % Change
Silver, cents/oz. 1,573.40 1,638.60 65.20 4.1
Gold, dollars/oz. 1,186.00 1,216.00 30.00 2.5
Gold/silver ratio 75.378 74.210 -1.168 -1.6
Silver/gold ratio 0.0133 0.0135 0.0002 1.6
Dow in Gold Dollars (DIG$) 310.83 301.53 -9.29 -3.0
Dow in gold ounces 15.04 14.59 -0.45 -3.0
Dow in Silver ounces 1,133.40 1,082.47 -50.93 -4.5
Dow Industrials 17,832.99 17,737.37 -95.62 -0.5
S&P500 2,058.20 2,044.81 -13.39 -0.7
US dollar index 91.43 92.16 0.73 0.8
Platinum 1,203.00 1,229.10 26.10 2.2
Palladium 794.85 800.15 5.30 0.7

I have a little special offer down below. Y'all don't overlook that.

The week don't lie. Despite all the jubilatin' on Wall Street, stocks ended the week gravity-challenged. Dollar Index rose, but may have peaked today; ain't enough left of the poor euro to kick it to the curb and wash up the goo. Gold & silver made steady gains, 4.1% & 2.5%. Even Platinum & Palladium got in on the fun, with platinum up 2.2% and palladium 0.7% higher.

Here's an aside about how prices respond in a free market. Last year live weight feeder cattle in Tennessee were bring $1.46/lb live weight -- on the hoof. This year they're bringing $2.20/lb, up 32%. Drought in the west has cut the national cattle herd to a 63 + year low. Drought made ranchers sell off cattle, even breeding stock, so that price won't bounce back soon. Takes two years to grow a mama cow, and most of another year for her to calve. That has taken the price of cows to the moon. And none of this has anything to do with "inflation, just natural events and cause and effect. My point? Put more beef in your freezer -- prices will rise.

Speaking of cattle, the Labor Department issued another lying report today, claiming that the US economy created 252,000 jobs in December and the unemployment rate had dropped to 5.6%. Whoops, average waged fell 0.2% & worker's gained only 1.7% in wages in 2014, almost enough to buy an extra hamburger a month. Whoops -- civilian labor force participation rate was 62.7% in December, and you have to look back to February 1978 to match that low. As liars go, government liars ain't much.

Them as lives by volatility dies by volatility -- thus the stock market this week. In spite of the Dow's Wednesday gains of 212.88 & Thursday's 323.35, stock market ended the week lower. Owch. Today the Dow lost 170.50 (0.95%) to 17,737.37 while the S&P500 shucked 17.33 (0.84%) to 2,044.81. Probably yesterday marked the end of the very latest wave up and beginning of next wave down. Dow ended slightly above its 20 DMA, S&P500 dead on both the 20 & 50. Precarious as a window washer on a 100 story building.

Dow in silver & Dow in gold are still drawing on their charts Gator Jaws or broadening top formations. Stocks' brief rally this week took them up to the (closely aligned) 20 & 50 DMAs, but today they dove again, pretty classic move for a downtrend.

Dow in gold slid 2.13% to G$299.74 gold dollars (14.50 troy oz), below that G$300 mark. Chart's here,

Dow in silver coughed up 1.82% to perch at S$1,388.11 silver dollars (1,073.69 oz). Look for the Chart at this URL,

I watch the DiG & DiS because they offer the most reliable indicator for the long term trend of silver and gold. When silver & gold are gaining against stocks, investor trust & confidence in the financial system is shrinking, and that determines the primary trend.

West Texas Intermediate Crude shriveled 1.45% to $48.21/bbl. Put a mirror under its nose, it may be showing signs of life.

US Dollar index today backed off 41 basis points (0.45%) to 92.16, just as it hit its upper channel trend line. Given how overbought it is, it's liable to correct at any time. Deeper suspicions stir my breast about its ability to climb higher. Chart:

Euro had its best day in a long time, which is like being served a better grade of oatmeal on death row. Rose 0.42% -- for the first time in the last 7 days -- and closed at $1.1843. If y'all are planning on a European vacation, better hop a jet now.

Yen also gained today, 0.98% to 84.36c/Y100. Has climbed above its 20 DMA and struggled over its downtrend line and truly has a leetle uptrend going. Strong as a mouse-pup.

Gold silver ratio dropped during the day but closed higher, above its 50 dma, at 74.210 ounces of silver to one ounce of gold. Forming a diamond top, I believe, but y'all look at the chart yourselves and tell me:

Today on Comex gold jumped up $7.60 (0.6%) to $1,216 & silver twitched 3.5 cents (0.2% to end at 1638.6. Aftermarket shows gold at $1,223.70 & silver at 1653c.

Silver's weekly chart (end of day, not Comex close) shows silver uptrending from 1 December and now only about fifty cents from its 20 DMA (1697c). It is testily moving up.

For the week silver ended above its moving averages so its momentum points higher. Indicators also point skyward, but most interesting is the possible diamond reversal pattern. If that's what it is, then next week a close just a few cents higher breaks silver out of the diamond. Just above about 1725c & roughly in line with the last high at 1735c is the downtrend line from the August 2013 high. One good day's rally & silver will punch through that resistance. Any price below 1575c would violate the diamond to the downside. Chart:

Gold's weekly chart closed higher, and gold snugged up against the Oct 2012 downtrend line like a fat fly on the ceiling. Gold also closed above its 20 week MA ($1,211.79).

On the daily chart, gold has nearly completed the upside-down head & shoulders I have been describing to y'all. It's plumb left behind its moving averages and is stretching for that neckline at $1,235. Generally when a market breaks through one of those necklines it leaps fast. See what I mean at

Gold & silver are set up to chalk higher prices next week.

On 9 January 1991 the IRS, with a government SWAT team in reckless disregard of my seven minor children's safety, descended on me and my wife Susan and arrested us. A US attorney-ess had called me the "most dangerous man in the Mid-South." After four years' investigation, it looked like the end had finally come and they would destroy us. But what they meant for the beginning of our destruction God used to begin our deliverance, and exactly one & a half years later, 9 July 1991, both of us and the 14 others who held firm to the end were all acquitted of a 72 count federal indictment that included willful failure to file income tax returns, conspiracy to delay and defeat a government agency (the IRS), spitting on numerous sidewalks, & gen'ral unsavoriness & bad manners. Whether they spend a million dollar or twenty million I don't know, I heard both numbers, but they subpoenaed 175 witnesses, most of whom testified, and brought in papers by the hundredweight in grocery carts (not joking). In sum, they had all the money, all the people, and all the liars they could assemble, & he who sits in the heavens laughed them to scorn. To God be the glory! You can read my account at



In 1878, in part to make up for the "Crime of 1873" that de facto demonetized the silver dollar, the Bland Allison Act authorized minting the Morgan silver dollar, named for the designer. Minted in 90% pure silver, it weighted 412-1/2 grains (0.8594 oz) and contained 371-1/4 grains (0.7734 fine silver content). As a model George Morgan used Anna Willess Williams of Philadelphia, and he created one of America's classical coins.

Morgan silver dollars were minted 1878 through 1904, then again in 1921. Since the mint had destroyed the dies in 1910, Morgan had to completely re-make them so the two versions aren't exactly the same. The pre-1905 coins command a premium. Here's what I am offering:

OFFER No. 1.

Fifty-five (55) each VG+ pre-1905 Morgan dollars, silver dollars at $27.50 each, for a total of $1,512.00 plus $35 shipping or $1,547.50. These are not uncirculated coins, but all are simply graded strict Very Good or better (VG+), no culls, no rim dings, cuts, full rims, etc. Each coin contains 0.765 troy ounce of silver, allowing wear for circulation. I have only two lots.

OFFER No. 2.

Seventy-nine (79) each VG+ 1921 Morgan silver dollars at $23.00 each, for a total of $1,817 plus $35 shipping or $1,852.00. All coins grade strict Very Good or Better. One lot only

OFFER No. 3.

Seventy-Five (75) each CULL Morgan dollars, mostly pre-1905. This includes anything that hath not full rims, or has a rim cut or flat spot or ding, anything that drags it below strict Very Good grade. I also have Forty-two silver American Eagles I have culled because they are stained or spotted or filmed over. Good silver, just not perfectly new items. 75 Cull Morgan dollars at $19.50 each Plus 42 cull silver American Eagles at $19.00 for a total of $2,260.50 plus $35 shipping or $2,295.50. One lot only

OFFER No. 4.

Seventy-Five (75) each CULL Morgan dollars, mostly pre-1905. Same as the coins in offer No. 3 above. Seventy-five each CULL Morgan dollars at $19.50 plus $35 shipping equals $1,497.50 One lot only.

OFFER No. 5.

World's smallest gold coin (that I know of) is the Mexican two pesos, containing exactly 0.0482 troy ounce of fine gold, a little less than 1/20 ounce. Minted in 90% pure gold (21.6 karat), it weighs 0.0536 ounce gross. I have only Eleven (11) lots of Thirty-three coins each at $64.80 each (10.5% premium over gold content) plus $35 shipping equals $2,173.40. If you want a tiny gold survival coin, the Mexican two peso is in a league of its own, because they don't come smaller than this.

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.

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 One of Lot 2, but if not available will take One of Lot 3 or Lot 4." ORDERING INSTRUCTIONS:

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

Your email must include your complete name, address, & phone number. 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.

Y'all enjoy your weekend!

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
9-Jan-15 Price Change % Change
Gold, $/oz 1,216.00 7.60 0.6
Silver, $/oz 16.39 0.04 0.2
Gold/Silver Ratio 74.210 0.462 0.6
Silver/Gold Ratio 0.0135 0.0000 0.2
Platinum 1,229.10 -5.90 -0.5
Palladium 800.15 3.55 0.4
S&P 500 2,044.81 -17.33 -0.8
Dow 17,737.37 -170.50 -1.0
Dow in GOLD $s 301.53 -4.78 -1.6
Dow in GOLD oz 14.59 -0.23 -1.6
Dow in SILVER oz 1,082.47 -12.74 -1.2
US Dollar Index 92.16 -0.41 -0.4
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: 1,223.70      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,254.29 1,266.53 1,266.53
1/2 AE 0.50 629.69 645.50 1,291.00
1/4 AE 0.25 314.85 328.87 1,315.48
1/10 AE 0.10 128.38 134.00 1,339.95
Aust. 100 corona 0.98 1,188.68 1,200.68 1,224.93
British sovereign 0.24 290.22 295.22 1,254.12
French 20 franc 0.19 230.18 234.18 1,254.30
Krugerrand 1.00 1,237.16 1,247.16 1,247.16
Maple Leaf 1.00 1,238.70 1,253.70 1,253.70
1/2 Maple Leaf 0.50 703.63 642.44 1,284.89
1/4 Maple Leaf 0.25 312.04 327.34 1,309.36
1/10 Maple Leaf 0.10 129.71 133.38 1,333.83
Mexican 50 peso 1.21 1,467.92 1,491.92 1,237.39
.9999 bar 1.00 1,227.98 1,239.70 1,239.70
SPOT SILVER: 16.52      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 22.75 26.50 34.64
VG+ Peace dollar 0.77 18.50 21.00 27.45
90% silver coin bags 0.72 12,848.55 13,206.05 18.47
US 40% silver 1/2s 0.30 4,681.65 4,831.65 16.38
100 oz .999 bar 100.00 1,642.00 1,702.00 17.02
10 oz .999 bar 10.00 170.20 171.20 17.12
1 oz .999 round 1.00 16.62 17.17 17.17
Am Eagle, 200 oz Min 1.00 18.27 18.92 18.92
SPOT PLATINUM: 1,229.10      
Platinum Platypus 1.00 1,254.10 1,294.10 1,294.10
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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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