The Moneychanger
Daily Commentary
Thursday, 16 March a.d. 2017 Browse the commentary archive

A day to shake & settle the basket makes the reaction to the Fed's interest rate boost look a little different.

Like a champeen high diver at the Olympics, the US dollar index continued to plunge through the air. After losing over 100 basis points yesterday, it lost another 39 bps today & closed at 100.18. Chart? Right here, Depending on how bloody it gets, dollar could fall nearly to 94, but it's a mite previous to be concerned about that. Let's see what happens when it steps through the manhole at the neckline.

Stocks decided they didn't like higher interest rates as much as they thought they did yesterday. Dow backed up 15.55 (0.7%) to 20,934.55. S&P500 fell 3.88 (0.16%) to 2,381.38. Both are sliding up & down along their 20 day moving averages. One misstep through that, one toe beneath it, might push stocks over a cliff.

Here's the S&P500 chart,

While the pattern after that gap on 1 March hasn't worked out into an island reversal, the gap certainly looks like an exhaustion gap.

Silver & gold confirmed key reversals today with higher closes. Comex gold closed at $1,226.50, up $26.40 or 2.2% from yesterday's close. Silver pole-vaulted 40.8¢ (2.4%) to 1729.6¢.

Let's think about the gold chart first,

Today gold busted through resistance at that bowl lip and reached up and grabbed the 20 DMA, making a high at $1,234. Closing above $1,225 is not showy, but solid. Next barrier is $1,234, then a hard fight to $1,250.

Silver chart may be found here,

Silver has conquered the red downtrend line from the July high and the neckline from the foregoing head & shoulders. Today it punched through, but closed not above, the 50 DMA. High came at 1758¢. Only really significant barrier is 1800¢, & above that the last high at 1854¢.

So far it's a springy, sprightly rally. Let's see if it has staying power.

On 16 March 1830 the New York Stock Exhcnage had its slowest day ever, trading 31 shares.

Here's a SPECIAL OFFER, but pay attention because I'm working this a bit differently. I'm going to give you MULTIPLIERS for these coins, by which you multiply the spot price. We use the spot prices at & none other.

SWISS 20 FRANCS with 0.1867 troy ounce of gold, at a 5.2% premium over the gold price. Just multiply spot gold times 0.1954 to get the retail price. With spot gold at $1,225, then $1,225 x 0.1964 = $240.60. Minimum lot is 10 coins, & I have only 20.

CANADIAN MAPLE LEAF at 4.4% premium with 1.0000 oz. Multiply spot gold by 1.044 for retail price. I have four only at that price.

SO. AFRICAN KRUGERRAND at 4.4% premium with 1.000 oz. Multiply spot gold price by 1.044. Minimum order is four coins.

US $5.00 GOLD COMMEMORATIVES at 4.4% premium on a 0.2419 oz gold content. Multiply spot price by 0.2525. I have only 75 coins, minimum purchase is ten coins.

MEXICAN 50 PESOS with 1.2057 oz gold at 2.5% premium. Multiply spot gold by 1.2359. Minimum four coins.

Needless to say, our call on the spot price is final, & remember it changes continuously. The multipliers shown above will only give you a rough idea of the price because spot gold changes. We will also add shipping to orders under ten (10) ounces, $35.00. To enter an order call (888) 218-9226 or (931) 766-6066 after 10:00 central time.

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
16-Mar-17 Price Change % Change
Gold, $/oz 1,226.50 26.40 2.20%
Silver, $/oz 17.30 0.41 2.42%
Gold/Silver Ratio 70.912 -0.150 -0.21%
Silver/Gold Ratio 0.0141 0.0000 0.21%
Platinum 957.80 22.20 2.37%
Palladium 768.65 21.20 2.84%
S&P 500 2,381.38 -12.65 -0.53%
Dow 20,934.55 -15.55 -0.07%
Dow in GOLD $s 352.84 -8.03 -2.23%
Dow in GOLD oz 17.07 -0.39 -2.23%
Dow in SILVER oz 1,210.37 -30.16 -2.43%
US Dollar Index 100.18 -0.39 -0.39%
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: 1,225.40      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,253.58 1,265.23 1,265.23
1/2 AE 0.50 630.57 645.17 1,290.35
1/4 AE 0.25 321.41 329.33 1,317.31
1/10 AE 0.10 128.56 134.18 1,341.81
Aust. 100 corona 0.98 1,192.13 1,201.13 1,225.39
British sovereign 0.24 290.62 303.62 1,289.82
French 20 franc 0.19 228.78 234.78 1,257.54
Krugerrand 1.00 1,237.65 1,247.65 1,247.65
Maple Leaf 1.00 1,235.40 1,248.40 1,248.40
1/2 Maple Leaf 0.50 704.61 643.34 1,286.67
1/4 Maple Leaf 0.25 312.48 327.79 1,311.18
1/10 Maple Leaf 0.10 129.89 133.57 1,335.69
Mexican 50 peso 1.21 1,466.26 1,477.26 1,225.23
.9999 bar 1.00 1,225.40 1,237.40 1,237.40
SPOT SILVER: 17.39      
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 12,290.85 12,648.35 17.69
US 40% silver 1/2s 0.30 4,938.30 5,088.30 17.25
100 oz .999 bar 100.00 1,729.00 1,754.00 17.54
10 oz .999 bar 10.00 175.40 180.40 18.04
1 oz .999 round 1.00 17.64 17.94 17.94
Am Eagle, 200 oz Min 1.00 18.39 19.64 19.64
SPOT PLATINUM: 957.80      
Plat. Platypus 1.00 952.80 997.80 997.80
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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.