The Moneychanger
Daily Commentary
Thursday, 17 September a.d. 2015 Browse the commentary archive

There's a tragically funny story in 2 Kings 22 about what we today would call a brain-storming session in heaven. In his throne room God asks the angels, "Who will convince King Ahab to go up to battle at Ramoth-Gilead so he will be destroyed?" One angel suggests one thing, another something else, and finally one says, "I'll go, and I'll be a lying spirit in the mouth of all his prophets." God says, "That's it. That's exactly it."

Back on earth King Ahab asks his prophets whether he should go to battle at Ramoth-Gilead, and the lying spirit in their mouths makes them say, "Yes, yes, go up! You'll win a great victory. Go!"

Only one prophet, Micaiah, tells Ahab the truth, that he goes only to his own death, but Ahab prefers the comfortable lie to the truth. So he goes to battle at Ramoth-Gilead, and an arrow shot "at random" lands between the joints of his armor and kills him.

Today Ahab's prophets on the FOMC appeared with comfortable lies in their mouths, urging themselves and the economy on to destruction.

Forget what they said, & look at what they did, namely, they didn't raise interest rates. What happened? Stocks fell, dollar tanked, interest rates cratered, and silver & gold jumped up.

If you want a classic picture of how the Fed roils markets, go to and look at any index's chart today. Right after the FOMC announcement stocks sank, then rocketed back up, Dow reached 1690 in a sharp peak, then just as quickly sank to close down 65.21 (00.39%) at 16,674.74. S&P500 suffered the same schizophrenia, ending 5.11 (0.26%) at 1,990.20.

Listen to me, hear what I say: sell stocks. Don't mess around, the worst is yet to come, & right soon. Don't listen one more second to those lying prophets.

Dow in gold sank 1.43% today to 14.76 oz, bouncing off its 200 day moving average & turning decisively earthward again. Dow in silver dropped 1.81% to end right at its 200 DMA, 1,103.19 oz.

US Dollar Index, as imagined by some nat'ral born durn fool from Tennessee, I can't remember his name, sank a massive 104 basis points (1.08%) as the disappointed hot-money speculators ran out of the dollar like gamblers out of church when the preacher gets wound up on card-playin' & drinkin'.

Dollar cut through its 200 dma (95.29) like a hot knife through butter and ended at 94.51, the very scraping-bottom of the day's range. Yas, suh, them central banks sho' do stabilize markets & currencies, don't they?

Comex closed before the FOMC announcement so gold closed $1.90 lower at $1,117.30 and silver 9.7 cents higher at 1497.5c. But after that announcement they shot up, and gold is now trading 1,130.50 and silver 1510c.

What encourages me most is that gold/silver ratio, which gapped down mightily yesterday and went lower today, ending at 74.61. This sets the stage perfectly for a silver & gold rally, rally, rally.

Now all ye gold-croakers & nay-sayers, deal with this: Gold fell down to the support line rising from the July low, bounced on that line 5 days, then bounded up off that line slicing through the 50 & 20 DMAs today. Don't take my word for it, go look yourself:

Now we all know there's a leetle resistance up around $1,140, but more important is $1,170 where the August rally failed. Just above that hovers the 200 DMA at $1,181.85. Y'all don't laugh at me like that's too much to hope for from here. It won't take much fear brewing to push gold up there.

Oh, silver! Honey! You braced your tiny feet on that 50 DMA and jumped plumb over that resistance at 1495c end & bumped your pretty head through that downtrend line from the April 2013 high. Now you only need to beat beat that old August high at 1572c, then leap for that 200 DMA up at 1606c.

Honey, I know you can do it! Just look,

On 17 September 1787 the Philadelphia constitutional convention thoroughly exceeded its writ to improve the Articles of Confederation by adopting a brand new Constitution to be presented to the states for approval. Given that the constitution created a strong central government to replace the decentralized Articles, it's hard not to believe it was done on purpose by people who felt the Revolution had gone too far in advancing the common folk. The constitution lasted only 72 years from its 1789 adoption, until a budding tyrant took charge, ready to ignore all those fine balances & separations of powers the framers had built. Patrick Henry had warned 'em.

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
17-Sep-15 Price Change % Change
Gold, $/oz 1,117.30 -1.90 -0.17%
Silver, $/oz 14.98 0.10 0.65%
Gold/Silver Ratio 74.611 -0.614 -0.82%
Silver/Gold Ratio 0.0134 0.0001 0.82%
Platinum 968.50 -7.30 -0.75%
Palladium 598.50 -12.55 -2.05%
S&P 500 1,990.30 -5.11 -0.26%
Dow 16,674.74 -65.21 -0.39%
Dow in GOLD $s 308.51 -0.68 -0.22%
Dow in GOLD oz 14.92 -0.03 -0.22%
Dow in SILVER oz 1,113.51 -11.64 -1.03%
US Dollar Index 94.51 -1.04 -1.09%
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: 1,130.50      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,161.59 1,170.07 1,170.07
1/2 AE 0.50 576.05 596.34 1,192.68
1/4 AE 0.25 290.85 303.82 1,215.29
1/10 AE 0.10 118.60 123.79 1,237.90
Aust. 100 corona 0.98 1,099.25 1,108.25 1,130.64
British sovereign 0.24 268.12 281.12 1,194.20
French 20 franc 0.19 212.65 216.65 1,160.40
Krugerrand 1.00 1,153.11 1,163.11 1,163.11
Maple Leaf 1.00 1,140.50 1,154.50 1,154.50
1/2 Maple Leaf 0.50 650.04 593.51 1,187.03
1/4 Maple Leaf 0.25 288.28 302.41 1,209.64
1/10 Maple Leaf 0.10 119.83 123.22 1,232.25
Mexican 50 peso 1.21 1,353.39 1,364.39 1,131.62
.9999 bar 1.00 1,134.46 1,142.50 1,142.50
SPOT SILVER: 15.10      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 25.00 27.00 35.29
VG+ Peace dollar 0.77 20.00 22.00 28.76
90% silver coin bags 0.72 14,014.00 14,371.50 20.10
US 40% silver 1/2s 0.30 4,262.75 4,412.75 14.96
100 oz .999 bar 100.00 1,535.00 1,560.00 15.60
10 oz .999 bar 10.00 152.50 157.50 15.75
1 oz .999 round 1.00 15.20 15.66 15.66
Am Eagle, 200 oz Min 1.00 16.60 18.10 18.10
SPOT PLATINUM: 968.50      
Plat. Platypus 1.00 983.50 1,013.50 1,013.50
Home Questions & Answers Articles & Resources
The Moneychanger, P.O. Box 178, Westpoint, TN 38486

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.