The Moneychanger
Daily Commentary
Thursday, 25 August a.d. 2016 Browse the commentary archive

The pal, pasty but hefty wraith of Janet Yellen hovereth & overshadoweth markets still. Tomorrow she speaketh, & all the list'ning world will be edified by her brilliant incoherence, save for me & y'all and a few other malcontents who know not yet to submit to their betters.

Meanwhile markets throttled warily back. US dollar index ranged from 94.80 to 94.56, 24 mighty basis points, and ended 1 basis point higher than yesterday's fiction at 94.74. This tucks the Dollar index plumb up against the downtrend line and mashes his nose against it. If Toad Woman misspeaks tomorrow, the dollar index will fall like stock in Carlo Ponzi's Securities Exchange Company the day his scheme was discovered. On the other hand, if her disjointed rambling satisfies the mob, the dollar will punch clean through.

Stocks backed down. Dow closed 18,448.41, losing 33.07 (0.18%). S&P winced to 2,172.47, down 2.9 or 0.14%).

Comex featured cosmetically lower closes. Gold lost $4.30 (0.3%) to $1,320.10, silver misplaced 6.7¢ (0.4%) to close at 1848.9¢

Gold was snoozing along about $1,324 when 10:00 hit and somebody tried to break it. Sellers drove it down as low as $1,318, but it bounced back and hugged $1,322 the rest of the day. Silver just bumped along sideways all day.

Again today I can only look at support areas. For gold that's $1,300 - $1,310 and for silver 1800¢. We'll know more after the Wicked Witch of the East pontificates.

On 25 August 1718 French colonists arrived I Louisiana and founded New Orleans. One thing we know about them: they were optimists. Only optimists would have settled in that swampy clime. Turns out, they were right, and New Orleans became a great city.

Tomorrow I have to drive to Chattanooga to see my foot surgeon. I would still appreciate y'all's prayers for healing, as my foot has yet a mighty long way to go. We should be back in time to send y'all a commentary.

Argentum et aurum comparanda sunt —
Silver and gold must be bought.

— Franklin Sanders, The Moneychanger

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Market Snapshot See more charts and market data
25-Aug-16 Price Change % Change
Gold, $/oz 1,320.10 4.30 0.33%
Silver, $/oz 18.49 -0.07 -0.36%
Gold/Silver Ratio 71.399 0.490 0.69%
Silver/Gold Ratio 0.0140 -0.0001 -0.69%
Platinum 1,074.50 -29.10 -2.64%
Palladium 685.00 -16.45 -2.35%
S&P 500 2,172.47 -2.90 -0.13%
Dow 18,448.41 -33.07 -0.18%
Dow in GOLD $s 288.89 -1.46 -0.50%
Dow in GOLD oz 13.97 -0.07 -0.50%
Dow in SILVER oz 997.80 1.82 0.18%
US Dollar Index 94.74 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: 1,320.60      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,352.29 1,364.84 1,364.84
1/2 AE 0.50 673.00 696.62 1,393.23
1/4 AE 0.25 339.80 354.91 1,419.65
1/10 AE 0.10 138.56 144.61 1,446.06
Aust. 100 corona 0.98 1,285.39 1,294.39 1,320.54
British sovereign 0.24 313.20 326.20 1,385.73
French 20 franc 0.19 244.09 248.09 1,328.82
Krugerrand 1.00 1,328.52 1,338.52 1,338.52
Maple Leaf 1.00 1,330.60 1,344.60 1,344.60
1/2 Maple Leaf 0.50 759.35 693.32 1,386.63
1/4 Maple Leaf 0.25 336.75 353.26 1,413.04
1/10 Maple Leaf 0.10 139.98 143.95 1,439.45
Mexican 50 peso 1.21 1,577.79 1,588.79 1,317.73
.9999 bar 1.00 1,325.22 1,332.60 1,332.60
SPOT SILVER: 18.49      
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 13,220.35 13,506.35 18.89
US 40% silver 1/2s 0.30 5,262.80 5,412.80 18.35
100 oz .999 bar 100.00 1,829.00 1,864.00 18.64
10 oz .999 bar 10.00 186.40 191.40 19.14
1 oz .999 round 1.00 18.29 18.79 18.79
Am Eagle, 200 oz Min 1.00 19.99 21.49 21.49
SPOT PLATINUM: 1,074.50      
Plat. Platypus 1.00 1,089.50 1,119.50 1,119.50
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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.

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