The Moneychanger
Daily Commentary
Monday, 1 August a.d. 2016 Browse the commentary archive

Markets are still hanging fire, floating on waves of indecision. That won't last.

Stocks keep eroding little by little. Dow Industrials average hit its 20 day moving average today, but managed to close above it at 18,404.51, down 27.73 (0.15%). S&P500 is some stronger, but it fell 2.76 (0.13%) to 2,170.84. 20 DMA doesn't lie far below at 2,152.30. MACD indicator for both has turned down. Expect gravity to control the direction of the next big move.

US dollar index rose 25 chiseling basis points (0.27%) to 95.75. That don't change a thing. Dollar index is dancing over its 50 DMA (95.59). If it falls through 95.50, next stop is 93 - 92.50.

Silver & gold advanced, but not decisively. Comex gold rose $2.40 (0.2%) to $1,351.40. Silver gained 15.3£ (0.8%) to 2046.5¢.

Charts show that 4 days ago both metals broke out of consolidations (flags) upward. Today both trod water. Yes, yes, the advances pleased you, but crossed no milestones. Silver needs to break above 2100¢ and gold above $1,377.50 to validate and extend gains already made. Commitments of Traders show very heavy speculator participation. That is hot money, & hot money can get cold feet quickly. But with negative interest rates metastasizing around the globe, and now central banks threatening to throw out Helicopter Money to all & sundry, what will benefit more than silver & gold? Not bonds or stocks.

Gold/Silver ratio in July rallied to mid-month, but never could work up grit nor gumption to climb over the 20 DMA. Now the ratio has turned down again. This is a good sign for silver & gold.

Don't let the apparent calm fool you. Powerful forces are building behind that mask.

SPECIAL OFFER:

The most useful form of silver is US 90% silver dimes, quarters, & halves minted before 1965. Why? They are the smallest self-authenticating form of physical silver. If you ever have to barter, 90% coin is what you want.

I have bought more US 90% silver coin than I want to stock, so I am pricing it to sell, about 65 cents an ounce over spot or $15.100 times face value.

I'll sell minimum lots of $150.00 face value (contains 107.25 oz pure silver) at $15.100 times face value. That's $2,265.00 per lot, plus $35.00 shipping per order, $2,300 total. I have only 16 lots to sell, dimes, quarters, or halves, my choice of denominations.

Check the internet. Cheapest I found 90% was $16,109, & that was if you bought a $1,000 face value bag. I need to sell it, but I'd rather give y'all the break than line some wholesaler's pockets.

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 offers@the-moneychanger.com. 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
1-Aug-16 Price Change % Change
Gold, $/oz 1,351.40 2.40 0.18%
Silver, $/oz 20.47 0.15 0.75%
Gold/Silver Ratio 66.035 -0.379 -0.57%
Silver/Gold Ratio 0.0151 0.0001 0.57%
Platinum 1,160.00 -9.70 -0.83%
Palladium 714.95 6.90 0.97%
S&P 500 2,170.84 -2.75 -0.13%
Dow 18,404.51 -27.73 -0.15%
Dow in GOLD $s 281.53 -0.93 -0.33%
Dow in GOLD oz 13.62 -0.04 -0.33%
Dow in SILVER oz 899.32 -8.14 -0.90%
US Dollar Index 95.75 0.25 0.26%
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: 1,351.40      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,385.19 1,396.67 1,396.67
1/2 AE 0.50 688.70 712.86 1,425.73
1/4 AE 0.25 347.73 363.19 1,452.76
1/10 AE 0.10 140.44 147.98 1,479.78
Aust. 100 corona 0.98 1,315.37 1,324.37 1,351.12
British sovereign 0.24 320.51 333.51 1,416.76
French 20 franc 0.19 254.20 258.20 1,382.96
Krugerrand 1.00 1,358.16 1,368.16 1,368.16
Maple Leaf 1.00 1,359.40 1,375.40 1,375.40
1/2 Maple Leaf 0.50 777.06 709.49 1,418.97
1/4 Maple Leaf 0.25 344.61 361.50 1,446.00
1/10 Maple Leaf 0.10 143.25 147.30 1,473.03
Mexican 50 peso 1.21 1,617.84 1,628.84 1,350.95
.9999 bar 1.00 1,356.13 1,363.40 1,363.40
SPOT SILVER: 20.47      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 23.00 27.00 35.29
VG+ Peace dollar 0.77 18.00 20.00 26.14
90% silver coin bags 0.72 14,421.55 14,707.55 20.57
US 40% silver 1/2s 0.30 5,920.65 6,082.65 20.62
100 oz .999 bar 100.00 2,037.00 2,092.00 20.92
10 oz .999 bar 10.00 203.70 209.70 20.97
1 oz .999 round 1.00 20.37 21.02 21.02
Am Eagle, 200 oz Min 1.00 22.22 23.22 23.22
SPOT PLATINUM: 1,160.00      
PLATINUM Fine Tr.Oz. BID ASK $/oz
Plat. Platypus 1.00 1,175.00 1,205.00 1,205.00
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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.

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