The Moneychanger
Daily Commentary
Wednesday, 23 August a.d. 2017 Browse the commentary archive

Monday night Trump nailed the final nail into his betrayal of those who elected him. Promising no more foreign wars, he has already sent troops to Iraq & Syria, and now in a burst of stupidity & cupidity that could only originate with the US military industrial complex, he will throw even more men into the 16 year war in Afghanistan. Trump is over. The Establishment has utterly co-opted him. Solid as a hollow beech.

Better luck next election.

With the Dow yesterday gaining 196.14 (0.9%) & the S&P500 14.14 (0.6%), it sounded like stock were a-blowin' and a-goin', didn't it?

Look for yourself: here's the Dow chart, http://schrts.co/Q6KUW0 and here's the S&P500, http://schrts.co/vtdPMb

I am guessing -- y'all tell me -- those are DOWNWARD trending channels on both charts. Yesterday's Dow surge picked its way to the 20 day moving average, but today it fell away and gave back all that territory. S&P500 only managed to close above its fifty DMA, but stepped through that again today.

Countertrend rallies like yesterday's are possible at any time, and accelerated by nervous shorts. Notwithstanding all that, stocks have turned their noses downward. Stay tuned for the LOWER sequel, soon to come.

Likewise the US dollar index, blood sucking parasite on the globe's economic jugular vein, rallied 43 basis points yesterday, only to pay back 30 of that today and close 0.4% lower at 93.07. Don't take my word for it, look here, http://schrts.co/OkJ5UT

Dollar index is trying to make up its mind which way it wants to fall, up or down. It has just about wrecked that bullish flat- topped rising triangle, and remains below the 20 DMA. All the same, if it can remain above that last low at 92.92, it will remain in a rising trend. Indicators favor higher prices, but watch out for a spike low.

Today silver rose 7¢ (0.4%) to 1703.2¢ while gold climbed $3.80 (0.3%) $1,288.90. Aftermarket shows gold at $1,290.50 and silver at 1707¢.

Right now gold has more muscle than silver, but glance at this chart, http://schrts.co/8dPn4Y Over & over $1,296 has stopped gold. $1,297 stopped it today. Gold acts like it wants to correct. Of course, a rise above $1,307 -- a rise AND close -- would knock that opinion in the head with a ball peen hammer. The rising trend line meets gold about $1,286 tomorrow, so it must hang above that.

Silver's chart, http://schrts.co/o96FnV sports a bearish rising wedge I have outlined in purple. No, there's no symbolism in my choice of colors. As y'all know, those rising wedges usually fall through the floor. If so, silver might hit 1650¢. However, a close above 1732 throws that idea out the window.

Unless contradicted by those higher closes I mentioned, silver & gold are staging little corrections that ought to pass quickly. Lower prices here mean bargain prices for you.

Here's a well-researched and spotlessly documented article by Dr. Thomas DiLorenzo, http://bit.ly/2iskR1p "The Lincoln Myth: Ideological Cornerstone of the American Empire." Professor DiLorenzo has already written two books about exposing Lincoln, but this particular article will reveal to y'all who was one of the most adamant white supremacists of the War Between the States era.

I spent most of the day today driving down to LA ("Lower Alabama" to y'all not from the South) to look at a 2011 Honda Ridgeline pick up truck. Back about 2011 I bought Susan a gray 2006 Honda Ridgeline and she loved it better than any car she ever had. It has cavernous amounts of room, rides like an easy chair. Susan ran errands for everybody on the farm & put over 25,000 miles a year on that truck. It's fraying a little at 260,000 miles, but still has another 100,000 in it.

This one today is navy blue with leather seats and has only 110,000 miles. It was okay for me to buy it because it's more than five years old. Susan would HAUNT me if I bought a new car & lost 35% of the value driving it off the lot. She was so tight I used to kid her about having buffalo poop on her hands from squeezing nickels.

It was a perfect cool, sunny day, rare for August, so I opened the windows and basked in the wind and blaring radio. About that time I started tearing up. I realized I never bought a car for myself, but just to watch Susan's reaction and for the fun of watching her enjoy it.

Husbands, you have only the faintest idea how immeasurably your wives bless you. Hug them once for me.

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-17 Price Change % Change
Gold, $/oz 1,288.90 3.80 0.30%
Silver, $/oz 17.03 0.07 0.41%
Gold/Silver Ratio 75.675 -0.088 -0.12%
Silver/Gold Ratio 0.0132 0.0000 0.12%
Platinum 978.10 -0.40 -0.04%
Palladium 935.40 0.65 0.07%
S&P 500 2,444.04 -8.47 -0.35%
Dow 21,812.09 -87.80 -0.40%
Dow in GOLD $s 349.83 -2.45 -0.69%
Dow in GOLD oz 16.92 -0.12 -0.69%
Dow in SILVER oz 1,280.65 -10.46 -0.81%
US Dollar Index 93.01 -0.35 -0.37%
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: 1,290.50      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,298.24 1,308.24 1,308.24
1/2 AE 0.50 651.20 664.61 1,329.22
1/4 AE 0.25 330.43 337.14 1,348.57
1/10 AE 0.10 137.33 140.02 1,400.19
Aust. 100 corona 0.98 1,253.56 1,262.56 1,288.07
British sovereign 0.24 306.06 319.06 1,355.40
French 20 franc 0.19 238.53 242.53 1,299.02
Krugerrand 1.00 1,294.37 1,304.37 1,304.37
Maple Leaf 1.00 1,294.37 1,304.37 1,304.37
1/2 Maple Leaf 0.50 742.04 677.51 1,355.03
1/4 Maple Leaf 0.25 329.08 345.21 1,380.84
1/10 Maple Leaf 0.10 136.79 140.66 1,406.65
Mexican 50 peso 1.21 1,541.82 1,552.82 1,287.90
.9999 bar 1.00 1,288.50 1,300.50 1,300.50
SPOT SILVER: 17.07      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 20.50 24.50 32.03
VG+ Peace dollar 0.77 14.50 17.50 22.88
90% silver coin bags 0.72 12,026.30 12,312.30 17.22
US 40% silver 1/2s 0.30 4,858.65 5,006.65 16.97
100 oz .999 bar 100.00 1,697.00 1,737.00 17.37
10 oz .999 bar 10.00 169.70 300.53 30.05
1 oz .999 round 1.00 17.02 17.45 17.45
Am Eagle, 200 oz Min 1.00 17.82 19.07 19.07
SPOT PLATINUM: 978.10      
PLATINUM Fine Tr.Oz. BID ASK $/oz
Plat. Platypus 1.00 996.10 1,018.10 1,018.10
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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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