The Moneychanger
Daily Commentary
Tuesday, 2 August a.d. 2016 Browse the commentary archive

Today I am battling technology & losing. What I affectionately call our Redneck WiFi got hit by lightning in a morning storm, & so my email and internet were knocked out. If you sent an email about that special offer for US 90% yesterday, I probably got it and entered your order, but the response is stuck in my outbox. I'll honor all the orders, once my email is resuscitated. If you just can't stand the suspense, call me at (931) 766-6066. Or you can enter a new order for 90% coin at proportionately the same rate by calling (888) 218-9226.

Must go fast because the evil spirits who seized my computer at work seem to have gotten ahead of me here at home in my laptop. Hope I can make a commentary work.

TODAY was a bad day for stocks. Dow fell 90.74 to 18,313.77 (down 0.49%) & the S&P500 fell 13.81 (0.64%) to 2,157.03. That plunges them through the 20 day moving average & the top boundary of a megaphone. In other words, today stocks crossed the line, headed down.

US dollar index tanked today, down 76 basis points to 94.99. This sent the Euro up 0.6% to $1.1228 and the yen up 1.53% to 99.13. That happened in the teeth of Bank of Japan announcing more inflation/stimulus. Whole world is nuttier than a ten dollar fruitcake. A deadly sickness has taken currencies.

Gold & silver both made new highs for their move. Silver added 20.1¢ (1%) to 2066.6¢. Comex gold rose $13.00 (1%) to 1,364.40.

Silver runs into its upper channel boundary about 2100¢, & the last (early July) high was at 2122.5¢. A close above that will signal silver has pulled on its seven league boots & is fixin' to step OUT.

Gold is challenging that last high at $1,377. Every know it all parvenu futures trader is shorting gold here, so that's slowing it down. But once it smashes that boundary, 'twill in short order leap for $1,450. After that comes a correction.

Currencies have me biting my lip. Something is wrong, wrong there. Some bad message is coming through, some unexpected bad news. Or else I just don't get what's happening cause I'm only a nat'ral born durn fool from Tennessee.

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-Aug-16 Price Change % Change
Gold, $/oz 1,364.40 13.00 0.96%
Silver, $/oz 20.67 0.20 0.98%
Gold/Silver Ratio 66.021 -0.013 -0.02%
Silver/Gold Ratio 0.0151 0.0000 0.02%
Platinum 1,168.80 0.00 0.00%
Palladium 716.40 0.00 0.00%
S&P 500 2,157.03 -13.81 -0.64%
Dow 18,313.77 -90.74 -0.49%
Dow in GOLD $s 277.47 -4.06 -1.44%
Dow in GOLD oz 13.42 -0.20 -1.44%
Dow in SILVER oz 886.18 -13.14 -1.46%
US Dollar Index 94.99 -0.76 -0.79%
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: 1,362.10      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,396.15 1,407.73 1,407.73
1/2 AE 0.50 694.16 718.51 1,437.02
1/4 AE 0.25 350.48 366.06 1,464.26
1/10 AE 0.10 142.92 149.15 1,491.50
Aust. 100 corona 0.98 1,325.78 1,334.78 1,361.75
British sovereign 0.24 323.04 336.04 1,427.54
French 20 franc 0.19 256.21 260.21 1,393.74
Krugerrand 1.00 1,370.27 1,380.27 1,380.27
Maple Leaf 1.00 1,372.10 1,386.10 1,386.10
1/2 Maple Leaf 0.50 783.21 715.10 1,430.21
1/4 Maple Leaf 0.25 347.34 364.36 1,457.45
1/10 Maple Leaf 0.10 144.38 148.47 1,484.69
Mexican 50 peso 1.21 1,630.65 1,641.65 1,361.58
.9999 bar 1.00 1,366.87 1,374.10 1,374.10
SPOT SILVER: 20.64      
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 14,503.78 14,788.78 20.68
US 40% silver 1/2s 0.30 5,895.58 6,045.58 20.49
100 oz .999 bar 100.00 2,043.50 2,113.50 21.14
10 oz .999 bar 10.00 207.85 212.85 21.29
1 oz .999 round 1.00 20.44 21.20 21.20
Am Eagle, 200 oz Min 1.00 22.14 23.64 23.64
SPOT PLATINUM: 1,168.80      
Plat. Platypus 1.00 1,183.80 1,213.80 1,213.80
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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

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