The Moneychanger
Daily Commentary
Tuesday, 23 August a.d. 2016 Browse the commentary archive

Gold traded in a $10 range today, silver in an 40¢ range, almost as exciting as a midnight morgue. Dollar index moved exactly one single basis point, down, to 94.49.

Ain't much to talk about. The Fed's on another jawboning spree to keep all markets off balance -- I know, I know, that don't make a lick of sense, but it's the Fed, so what do you expect? Thursday a vast amount of mental gas will be released when Yellen speaks at the Fed's Jackson Hole Conference.

Forget it, friends: the Fed is NOT going to save us.

Stocks today also stepped cautiously sidewise. Dow rose 17.88 (0.1%) to 18,547.30 while the S&P500 danced over 4.26 (up 0.2%) to 2,186.90.

Gold on Comex did rise $2.90 (0.2%) to $1,340.60. Silver added 6.7¢ to 1891¢.

Best thing I can say for gold is that it didn't break down. It also didn't close back within that triangle, or above the 20 DMA. While the Fed boogeyman haunts the market, gold won't settle any questions. If Yellen does her worst, it probably won't sink past $1,300, or $1,250 at the worst.

Silver's in the same rut as gold, but is liable to fall to 1800¢ support, maybe 1750¢ in a panic. Believe it or not, the correction has nearly run its course. Silver's RSI has come overbought in early July to 38.86 today, closer to oversold. MACD is about as low as it was the last correction bottom (early June). Of course, oversold can always get oversolder, but 'twill have to work hard at it.

Y'all will be relieved and comforted in your souls to find out that the mighty US government is acting even as you sit there doing nothing, you slouch, to deliver a suffering nation from a massive cheese glut. Although I have to work like a ferret in a deserted rat hole to find any edible cheese in an American grocery store, although Americans call Velveeta "cheese," apparently the whole country is stuffed to the gills with so much cheese that the US Department of Agriculture, whose job is to destroy agriculture, must buy 11 million pounds for $20 million.

Now try to grasp this. Not 15 miles from me my friends Jim and Gayle Tanner operate Bonnie Blue Farm, the only Grade A goat dairy in Tennessee. With ne'er a drap of gummint money or subsidy, they have built one of the finest dairy goat herds in the country, dug their own cheese cave, and made cheese so superb that they can't make enough of it! Restaurants and consumers are hollerin' to get their hands on Bonnie Blue cheeses, soft or aged, goat or cow.

Now what do Jim and Gayle know that the almighty yankee government don't know and can't figure out? I tell you this much: the word "Velveeta" ain't in their vocabulary. Neither is "subsidy." And Bonnie Blue's cheese can stand shoulder to shoulder with anything made in Europe and shove back. Ain't no cheese glut in Wayne County.

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
23-Aug-16 Price Change % Change
Gold, $/oz 1,340.60 2.90 0.22%
Silver, $/oz 18.91 0.07 0.36%
Gold/Silver Ratio 70.894 -0.098 -0.14%
Silver/Gold Ratio 0.0141 0.0000 0.14%
Platinum 1,108.80 2.30 0.21%
Palladium 698.95 7.70 1.11%
S&P 500 2,186.20 4.26 0.20%
Dow 18,547.30 17.88 0.10%
Dow in GOLD $s 286.00 -0.34 -0.12%
Dow in GOLD oz 13.84 -0.02 -0.12%
Dow in SILVER oz 980.82 -2.54 -0.26%
US Dollar Index 94.49 -0.01 -0.01%
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: 1,335.90      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,367.96 1,380.65 1,380.65
1/2 AE 0.50 680.80 704.69 1,409.37
1/4 AE 0.25 343.74 359.02 1,436.09
1/10 AE 0.10 140.16 146.28 1,462.81
Aust. 100 corona 0.98 1,300.28 1,309.28 1,335.73
British sovereign 0.24 316.83 329.83 1,401.14
French 20 franc 0.19 246.92 250.92 1,343.97
Krugerrand 1.00 1,343.92 1,353.92 1,353.92
Maple Leaf 1.00 1,345.90 1,359.90 1,359.90
1/2 Maple Leaf 0.50 768.14 701.35 1,402.70
1/4 Maple Leaf 0.25 340.65 357.35 1,429.41
1/10 Maple Leaf 0.10 141.61 145.61 1,456.13
Mexican 50 peso 1.21 1,596.07 1,607.07 1,332.89
.9999 bar 1.00 1,340.58 1,347.90 1,347.90
SPOT SILVER: 18.77      
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 13,381.23 13,703.23 19.17
US 40% silver 1/2s 0.30 5,343.93 5,493.93 18.62
100 oz .999 bar 100.00 1,856.50 1,891.50 18.92
10 oz .999 bar 10.00 189.15 194.15 19.42
1 oz .999 round 1.00 18.57 19.07 19.07
Am Eagle, 200 oz Min 1.00 20.27 21.77 21.77
SPOT PLATINUM: 1,108.80      
Plat. Platypus 1.00 1,123.80 1,153.80 1,153.80
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.