The Moneychanger
Daily Commentary
Wednesday, 3 August a.d. 2016 Browse the commentary archive

Y'all do know y'all are being set up, right?

The entire West is being set up for totalitarian controls by false flag terrorist events. Ever notice how none of the perpetrators is captured alive? If you were the police, wouldn't you want to catch at least one alive to interrogate? Also, did y'all notice how many of these are "lone assassins"?

Meanwhile the US is rapidly becoming ungovernable, thanks in large part to Obama administration's promoting the victim mentality. This will end very badly. Over 400 mn firearms are scattered throughout the US, and some of the owners will use them if threatened. Outlook is gruesome if restraint comes unraveled. Once it does, can't be easily re-knit. Not a sweater anymore, just a tangle of yarn.

If the rule of law dies, chaos ensures, and chaos is the one state mankind cannot abide. They find dictatorship preferable.

Y'all had better pray these things don't come to pass.


Stocks managed a twitch, but that's it. Dow Industrials rose 41.23 (0.23%) to 18,355.00. S&P500 twitched a bit harder, up 2.18 (0.31%) to 2,163.79. A cynical nat'ral born durned fool from Tennessee would say they're only twitchin' from the shock of falling through that upper megaphone boundary & 20 DMA, twitchin' before they die.

US dollar index was twitchy, too. Remember yesterday it poked through 95.50 support like a fist poking through a kitchen wall in a trailer? Also fell beneath the 50 DMA, the last one before oblivion. So it bounced today, climbing 54 basis points (0.57%) to 95.53. All the same, it still looks sick as a puking monkey. Watch the 95 level. Go look for yourself,

Dollar Index is composed 57% of the Euro, so whatever the dollar index does, the euro usually does the reciprocal. It fell 0.59% to $1.1151. Count me an unbeliever in the euro. Yen fell back 0.36% to 98.77. Given Japan's persistently loony monetary policies, now working on their 26th year, one wonders why anybody would buy yen. Apparently in you own yuan or euros, the yen looks good -- if you're scared enough. Might be working on a double top about 100.

On Comex today, where they take no prisoners, Gold tumbled $8.30 (0.6%) to $1,356.10., silver fell harder, 23¢ (1.1%) to 2043.6¢.

Gold's problem is drawing near the Kryptonite of that last high at $1,377.50 Today's high hit $1,373.40, yesterday's $1,374.20. Gold must crack this wall to advance, and most likely will. Chart's here,

Gold has, I remind y'all, already crossed above its upper channel boundary, confirming the breakout from the bullish flag. MACD still argues for more rally, but volume is drying up and the RSI pointing down. In other words, all this action blows hot & cold out of both sides of its mouth. Positive, but not enthusiastic. As always with life and markets, if you're not advancing you'll soon be retreating. Gold needs to stop fiddlin' and shoot up.

Silver's RSI was overbought for half of July, and only 1-1/2 weeks of decline pulled it down. Yesterday it hit the overbought line again, & is pointing down. Today's action says little, but from the last two days' highs, the barrier to breach is 2080¢. Silver is possibly drawing out a bearish rising wedge, but weight is still pushing upward.

We ran a special on those gold US $5 commemoratives not long ago. They were minted from 1986 - 2008, and contain 0.2418 troy ounce of pure gold. We can still sell them at about 3.5% over their melt value, which is eye-popping cheap compared to a one ounce American Eagle at 7.5%, or 1/4 American Eagle at 9.7%. We can sell the US$5 at $12 over melt value. It's a fractional US gold coin about the same price as an Austrian 100 corona. Shipping is $30 per order. Call us at (888) 218-9226 or (931) 766-6066.

Only reason the market is offering this opportunity is that it's the dead summertime and there's so little action. THAT should come as August closes, and end the bargains.

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
3-Aug-16 Price Change % Change
Gold, $/oz 1,356.10 -8.30 -0.61%
Silver, $/oz 20.44 -0.23 -1.11%
Gold/Silver Ratio 66.358 0.337 0.51%
Silver/Gold Ratio 0.0151 -0.0001 -0.51%
Platinum 116.90 -1.90 -1.60%
Palladium 712.55 -3.85 -0.54%
S&P 500 2,163.90 2.18 0.10%
Dow 17,355.00 41.23 0.24%
Dow in GOLD $s 264.55 2.23 0.85%
Dow in GOLD oz 12.80 0.11 0.85%
Dow in SILVER oz 849.24 11.45 1.37%
US Dollar Index 95.53 0.54 0.57%
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: 1,355.90      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,391.15 1,401.32 1,401.32
1/2 AE 0.50 691.00 715.24 1,430.47
1/4 AE 0.25 348.89 364.40 1,457.59
1/10 AE 0.10 142.26 148.47 1,484.71
Aust. 100 corona 0.98 1,319.75 1,328.75 1,355.59
British sovereign 0.24 321.57 334.57 1,421.29
French 20 franc 0.19 255.05 259.05 1,387.49
Krugerrand 1.00 1,364.04 1,374.04 1,374.04
Maple Leaf 1.00 1,365.90 1,379.90 1,379.90
1/2 Maple Leaf 0.50 779.64 711.85 1,423.70
1/4 Maple Leaf 0.25 345.75 362.70 1,450.81
1/10 Maple Leaf 0.10 143.73 147.79 1,477.93
Mexican 50 peso 1.21 1,623.23 1,634.23 1,355.42
.9999 bar 1.00 1,360.65 1,367.90 1,367.90
SPOT SILVER: 20.41      
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 14,342.90 14,628.90 20.46
US 40% silver 1/2s 0.30 5,829.20 5,979.20 20.27
100 oz .999 bar 100.00 2,021.00 2,086.00 20.86
10 oz .999 bar 10.00 205.60 210.60 21.06
1 oz .999 round 1.00 20.21 20.96 20.96
Am Eagle, 200 oz Min 1.00 21.91 23.41 23.41
SPOT PLATINUM: 116.90      
Plat. Platypus 1.00 131.90 161.90 161.90
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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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