The Moneychanger
Daily Commentary
Wednesday, 2 December a.d. 2015 Browse the commentary archive

Gold dropped today, flinching ahead of the European Central Bank meeting tomorrow. Yellen also spoke out of both sides of her mouth today, a job requirement for any Fed apparatchik. Fed-watchers, which is everybody but me, interpreted her remarks as an intention to raise interest rates later this month.

If on Thursday the ECB criminals lower interest rates deeper into negative territory & announce more Quantitative Easing, they will scuttle the euro (hoping to raise stocks) and send the dollar soaring. Relative interest rates between currencies (nominal interest rate less expected inflation loss) primarily determine currency exchange rates. If the charm-challenged Mrs. Yellen & her dipsy dwarves raise US interest rates, they'll push up the dollar and scuttle the US export economy. Probably also scuttle the stock market and the whole US economy. The "recovery" Yellen & the other Fed-niks brag about exists wholly & entirely in their brutish imaginations.

Central bankers find themselves in the same situation as Harry Houdini's famous trick where he was suspended head down & feet up in a big glass box full of water, bound in chains & locks. Trouble is, central bankers don't know how to pick a station on a radio dial, much less pick all those locks & untangle those chains.

In Greece the government has ordered all taxpayers to declare all cash "under the mattress" or safe deposit boxes containing more than 15,000 euros as well as jewelry, precious stones, and gold beginning on 1 January 2016. Clearly, as soon as the government knows who has what, they'll tax or confiscate it. In the words of my Greek friend, HG, "Good luck trying to enforce that one. Molon labe." That's the response the Greeks at Thermopylae gave when the Persians demanded they surrender their weapons: "Molon labe! Come and take 'em."

In a replay of volatility, stocks today lost nearly everything they gained yesterday. Dow gave back 158.67 (0.89!) to 17,729.68 while the S&P500 fell 23.12 (1.1%) to 2,079.51.

US dollar index rose 18 basis points (0.18%) to 100.01. No new information there. Euro dropped 0.13%, market's expecting bad news for the euro from the ECB. Yen dropped 0.29% to 81.16.

Gold dropped $9.60 (0.9%) to close Comex at $1,054.20. Silver lost 7.6 cents (0.5%) to 1397.9c. Nothing will happen until after the ECB announcement tomorrow, then we'll see.

The shadow of the ECB meeting gets the blame for gold's drop, but mark that gold only made a double bottom with last Friday's low. This would be a great place for gold to reverse.

We wait, we watch, we know that gravity's law hath not been repealed.


Take advantage of gold's price drop today! Spot gold basis for these offers is $1,054.20

A customer sold me fifty of what he thought were Belgian 20 francs, but it turned out there were also Swiss, Hungarian and Austrian, and a few very old French 20 francs, back to Napoleon I in 1812. No collector value, just fascinating. All original issue, no re-strikes (some I had never seen before).

Empires used to run on gold, that's why so many 20 franc coins are still extant & traded in the world. France's Latin Monetary Union encouraged other countries to mint gold coins of the same size, so the Belgians, Swiss, & Austrians followed suit. Twenty francs rank among the most popular gold coins in the world & contain 0.1867 troy ounce of fine gold. I'll sell these MIXED types (my choice of types) at $206.00 each (a 4.8% premium over gold) till stock is gone.

One lot contains ten (10) Twenty 20 franc coins at $206.25 each or a total of $2,062.50 plus $35 shipping for a total of $2,297.50. I have only 7 lots.

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. 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.

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

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

5. You must 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. Sorry, no credit cards.

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
2-Dec-15 Price Change % Change
Gold, $/oz 1,054.20 -9.60 -0.90%
Silver, $/oz 13.98 -0.08 -0.54%
Gold/Silver Ratio 75.413 -0.275 -0.36%
Silver/Gold Ratio 0.0133 0.0000 0.36%
Platinum 832.40 -3.00 -0.36%
Palladium 525.70 -12.95 -2.40%
S&P 500 2,079.51 -23.12 -1.10%
Dow 17,729.68 -158.67 -0.89%
Dow in GOLD $s 347.66 0.05 0.02%
Dow in GOLD oz 16.82 0.00 0.02%
Dow in SILVER oz 1,268.31 -4.43 -0.35%
US Dollar Index 100.01 0.18 0.18%
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: 1,052.80      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,084.38 1,089.65 1,089.65
1/2 AE 0.50 536.42 555.35 1,110.70
1/4 AE 0.25 270.84 282.94 1,131.76
1/10 AE 0.10 110.44 115.28 1,152.82
Aust. 100 corona 0.98 1,024.73 1,033.73 1,054.61
British sovereign 0.24 249.69 262.69 1,115.92
French 20 franc 0.19 198.03 202.03 1,082.12
Krugerrand 1.00 1,065.43 1,075.43 1,075.43
Maple Leaf 1.00 1,062.80 1,076.80 1,076.80
1/2 Maple Leaf 0.50 605.36 552.72 1,105.44
1/4 Maple Leaf 0.25 268.46 281.62 1,126.50
1/10 Maple Leaf 0.10 111.60 114.76 1,147.55
Mexican 50 peso 1.21 1,261.64 1,272.64 1,055.52
.9999 bar 1.00 1,056.48 1,064.80 1,064.80
SPOT SILVER: 13.97      
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 11,486.48 11,772.48 16.47
US 40% silver 1/2s 0.30 3,927.93 4,077.93 13.82
100 oz .999 bar 100.00 1,421.50 1,446.50 14.47
10 oz .999 bar 10.00 141.15 146.15 14.62
1 oz .999 round 1.00 14.07 14.53 14.53
Am Eagle, 200 oz Min 1.00 15.47 16.72 16.72
SPOT PLATINUM: 832.40      
Plat. Platypus 1.00 847.40 877.40 877.40
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© 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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