The Moneychanger
Weekly Commentary
Friday, 10 March a.d. 2017 Browse the commentary archive
Here's the weekly scorecard:
  3-Mar-17 10-Mar-17 Change % Change
Silver, cents/oz. 1,769.70 1,688.30 -81.40 -4.6
Gold, dollars/oz. 1,225.50 1,200.70 -24.80 -2.0
Gold/silver ratio 69.249 71.119 1.870 2.7
Silver/gold ratio 0.0144 0.0141 -0.0004 -2.6
Dow in Gold Dollars (DIG$) 353.95 359.88 5.92 1.7
Dow in gold ounces 17.12 17.41 0.29 1.7
Dow in Silver ounces 1,185.72 1,238.11 52.39 4.4
Dow Industrials 20,983.66 20,902.98 -80.68 -0.4
S&P500 2,378.80 2,372.60 -6.20 -0.3
US dollar index 101.55 101.06 -0.49 -0.5
Platinum 992.00 936.90 -55.10 -5.6
Palladium 767.85 746.00 -21.85 -2.8

Rough week for gold, rougher still for silver, roughest yet for platinum. Stocks crabwalked sideways, & the US dollar index failed signally.

Lo, the US dollar index chart, dear readers:

So far the head & shoulders pattern remaineth unbroken. Scrofulous dollar index attempted to bull through the shoulder line yet failed ignominiously yesterday. Today it seconded that failure by falling 66 basis points (0.65%, a lot) to 101.06, nesting below the 20 & 50 day moving averages and just nearly turning down the MACD.

That dollar failure today prompted the euro to rally 0.91 (a lot) to $1.0675. Truth to tell, it appears the euro has reversed upwards.

Stocks earned no bragging rights today. Dow lifted 44.79 (0.21%, not a lot) to 20,902.98. SP500 added 7.73 (0.33%) to close 2,372.60. Underwhelming. Yet, after touching the 20 DMA yesterday both turned up, which doesn't say much as chartwatchers would be hovering there waiting to buy. Watch what happens next week.

Silver lost another 11¢ (0.6%) to close Comex at 1688.3¢. Owch. Gold backed up $1.0 (0.1%) to $1,200.70.

Gold chart's right here, Silver is here,

Gold's falling through its 50 DMA yesterday did, I confess, occasion some nailbiting. More grating than that was gold's performance on a bad-hair day for the dollar index. Yet I gaze upon the 24 hour chart for both gold & silver & spy out what looks like a little bowl bottom or double bottom. Course, that also might be no more than profit-taking shorts covering profitable positions before the weekend. Still, with the dollar ailing, metals ought to turn up next week. Wait a second, Moneychanger! What if they don't turn up?

Then you have to reckon with the next chart support from previous lows, $1,180 for gold & 1664¢ for silver.

Personally, I am calm. The massive debt bomb overhanging the US economy will eventually blow, and when it does gold & silver holders will have some capital -- considerably up-valued capital - to rebuild with.

Transcribing Susan's prayer journals this morning I came across an entry where she discusses her role in our 1991 federal income tax criminal trial (apply that "criminal" to any of those antecedents you like.) If you don't know about it, read "The Most Dangerous Man in the Mid South" here,

She wrote "I think I just rode on everyone's coattails. I don't think I contributed one thing other than fill space in the courtroom & be silent."

Sound humility, but rotten reporting. Nothing could further understate the truth. Susan was a rock throughout that trial. Facing 19 years in jail, never once did she complain, never once die she whine, never once was she downcast or negative, never the first time did she turn to me and say, "This is all YOUR fault," when in fact it was.

Susan had more physical and moral courage than anybody I've ever known. Throughout that grueling ordeal that lasted exactly 1-1/2 years (1-9-90 - 7-9-91) from arrest to acquittal and a nearly six-months in trial, she was all brightness & joy & trust as if she were out on a picnic. She was a living testament to the grace of God & his joy.

Y'all enjoy your weekend.

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
10-Mar-17 Price Change % Change
Gold, $/oz 1,200.70 -1.70 -0.1
Silver, $/oz 16.88 -0.11 -0.6
Gold/Silver Ratio 71.119 -0.096 -0.1
Silver/Gold Ratio 0.0141 -0.0001 -0.6
Platinum 936.90 -1.00 -0.1
Palladium 746.00 -2.90 -0.4
S&P 500 2,372.60 7.73 0.3
Dow 20,902.98 44.79 0.2
Dow in GOLD $s 359.88 1.32 0.4
Dow in GOLD oz 17.41 0.06 0.4
Dow in SILVER oz 1,238.11 10.65 0.9
US Dollar Index 101.06 -0.60 -0.6
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: 1,204.15      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,228.23 1,243.28 1,243.28
1/2 AE 0.50 619.62 633.98 1,267.97
1/4 AE 0.25 315.83 323.62 1,294.46
1/10 AE 0.10 126.33 131.85 1,318.54
Aust. 100 corona 0.98 1,171.46 1,180.46 1,204.30
British sovereign 0.24 285.58 298.58 1,268.41
French 20 franc 0.19 224.81 230.81 1,236.29
Krugerrand 1.00 1,217.40 1,227.40 1,227.40
Maple Leaf 1.00 1,214.15 1,227.15 1,227.15
1/2 Maple Leaf 0.50 692.39 632.18 1,264.36
1/4 Maple Leaf 0.25 307.06 322.11 1,288.44
1/10 Maple Leaf 0.10 127.64 131.25 1,312.52
Mexican 50 peso 1.21 1,440.84 1,451.84 1,204.14
.9999 bar 1.00 1,204.15 1,216.15 1,216.15
SPOT SILVER: 17.01      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 22.50 26.00 33.99
VG+ Peace dollar 0.77 16.00 18.00 23.53
90% silver coin bags 0.72 11,947.65 12,305.15 17.21
US 40% silver 1/2s 0.30 4,826.20 4,976.20 16.87
100 oz .999 bar 100.00 1,691.00 1,716.00 17.16
10 oz .999 bar 10.00 171.60 176.60 17.66
1 oz .999 round 1.00 17.26 17.56 17.56
Am Eagle, 200 oz Min 1.00 18.01 19.26 19.26
SPOT PLATINUM: 936.90      
Platinum Platypus 1.00 931.90 976.90 976.90
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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.

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