The Moneychanger
Daily Commentary
Thursday, 1 October a.d. 2015 Browse the commentary archive

Stocks' staying power was displayed in today's trading, making it even more obvious that yesterday was tape-painting day. By noon the Dow had sunk 200 points, but "friends" came in to buy & lifted it to only 12.69 points (0.08%) lower than yesterday, settling at 16,272.01. After the same trajectory, the S&P500 gained a weighty 3.79 points (0.2%) to 1,923.82.

Ain't that something'? Whole world is smoke & mirrors. Is it real, or Memorex?

US dollar index can't quite hold on to its gains. Dropped 16 basis points (0.17%) to 96.32, nearly dead on the 50 DMA (96.29). Like other markets, this one, too, feels listless and directionless. That never lasts for long, but for now the buck is locked in a downtrend. Needs a close above 96.88 to break out skyward, a break below 95.66 to break down.

Euro & Yen are also listless. Both have formed even-sided triangles that foretell some big move one way or 'tother, just ain't telling which. Euro ended 0.06 higher at $1.1185 and the Yen 0.05% lower at 83.38.

Gold & silver have gone flat. Don't know why they bothered opening the markets today. Gold traded in an $8.50 range, and ended down $1.30 (0.12%) at $1,114.20. Silver lost 7/10 cent to end Comex at 1450.6c.

Silver made one attempt mid-day to rise and reached 1470c, but gave back all those gains to come to roost on that $1450 ledge. Low came at 1443c. Just not enough juice in the market to push it up or down. We've been becalmed three days in this 1470 - 1443c range. Present downtrend suggests an outcome with lower prices. Premium on US 90% silver coin today eased off 20 cents to $3.80 (wholesale buy side), after it had already dropped 15 cents the day before. That doesn't settle the question, but it is a small buzzard feather dropping from the sky.

Gold hit the bottom boundary of that even-sided triangle again today, and rests below its 20 and 50 day moving averages. This is rotten action, but gold remains in an uptrend off the July low.

I keep asking myself if I'm missing something, but you don't know what you don't know.

On 1 October 331 B.C. Alexander the Great defeated the Persian emperor Darius III in the Battle of Gaugamela. Empires always look stronger than they are.

On 1 October 1746 that rotten Stuart, "Bonnie" Prince Charlie fled to England, leaving the Scots who supported him to the tender mercies of the German-English king. At the Battle of Culloden on 16 April he had burnt up all his advantages and many of his men.

On 1 October 1827 the Russian army under Ivan Paskevich stormed Yerevan, ending a thousands years of Muslim domination in Armenia.

On 1 October 1867 Karl Marx published his book, Das Kapital. There is literally no telling what hecatombs of bodies and oceans of blood that book caused.

On 1 October 1908 Henry Ford introduced the Model T car at a cost of $825.00 or 39.909 ounces of gold, worth $44,499 today. Even the Government's understated BLS inflation calculator says that 1908 price would be $19,860 today.

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
1-Oct-15 Price Change % Change
Gold, $/oz 1,114.20 -1.30 -0.12%
Silver, $/oz 14.51 -0.01 -0.05%
Gold/Silver Ratio 76.810 -0.053 -0.07%
Silver/Gold Ratio 0.0130 0.0000 0.07%
Platinum 903.20 -4.00 -0.44%
Palladium 679.40 28.40 4.36%
S&P 500 1,923.82 3.79 0.20%
Dow 16,272.01 -12.69 -0.08%
Dow in GOLD $s 301.90 0.12 0.04%
Dow in GOLD oz 14.60 0.01 0.04%
Dow in SILVER oz 1,121.74 -0.33 -0.03%
US Dollar Index 96.32 -0.16 -0.17%
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: 1,114.20      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,145.40 1,153.20 1,153.20
1/2 AE 0.50 567.73 587.74 1,175.48
1/4 AE 0.25 286.65 299.44 1,197.77
1/10 AE 0.10 116.89 122.00 1,220.05
Aust. 100 corona 0.98 1,086.68 1,095.68 1,117.81
British sovereign 0.24 264.25 277.25 1,177.78
French 20 franc 0.19 209.58 213.58 1,143.98
Krugerrand 1.00 1,134.26 1,144.26 1,144.26
Maple Leaf 1.00 1,124.20 1,138.20 1,138.20
1/2 Maple Leaf 0.50 640.67 584.96 1,169.91
1/4 Maple Leaf 0.25 284.12 298.05 1,192.19
1/10 Maple Leaf 0.10 118.11 121.45 1,214.48
Mexican 50 peso 1.21 1,333.88 1,344.88 1,115.43
.9999 bar 1.00 1,118.10 1,126.20 1,126.20
SPOT SILVER: 14.51      
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 13,088.08 13,445.58 18.81
US 40% silver 1/2s 0.30 4,087.23 4,337.23 14.70
100 oz .999 bar 100.00 1,475.50 1,500.50 15.01
10 oz .999 bar 10.00 146.55 151.55 15.16
1 oz .999 round 1.00 14.61 15.07 15.07
Am Eagle, 200 oz Min 1.00 16.01 17.51 17.51
SPOT PLATINUM: 903.20      
Plat. Platypus 1.00 918.20 948.20 948.20
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.