The Moneychanger
Daily Commentary
Tuesday, 5 September a.d. 2017 Browse the commentary archive

Here's a recent quote from Fred Hickey of "The High-Tech Strategist:

"Including this year [as of 2 September], gold has risen in 14 of the past 17 years at a 9.4% compound annual rate, far surpassing returns from stocks. That's why I still contend we're in a long, secular bull market (driven by the central bank madness) and that the 2013-20155 decline was simply a sharp correction phase, not unlike the 1974-1976 cyclical bear period for gold in the 1970s secular bull market. That's why I also believe that we've now begun the second phase of the secular bull with the most spectacular gains in price still ahead of us."

Today gold extended its gains from last week. Stocks stepped through an open manhole, holding hands with the dollar index.

US dollar index fell 59 basis points (0.63%) to 92.26, leaving me wondering how puking sick it really is. Every time it manages to climb a bit, it falls into the nervous fantods & faints. Mercy, what a wreck. Beginning to plant the suspicion in my mind that the dollar index will stage no more than a reaction rally, and that won't carry even to 94, after which it will reverse again earthward, flying like a two horned anvil dropped out of the Goodyear Blimp. If the dollar index closed below the last low at 91.55, it will sink like the Lusitania.

Time finally caught up with stocks. In a most unedifying way stocks reneged today on the rally their little breakout promised last week. Ooooo, very weak trading. Should have reached at least for the old highs. Rather, in one day it erased the gains of the last three.

Dow fell a meaty, bruising 1.07% (234.25 points), closing at 21,753.31. S&P500 tumbled & skidded 18.70 or 0.76% to 2,457.85. S&P500 chart is here, Now both indices closed above their 50 day moving averages, so a feeble chance remains they will reverse upward tomorrow. More likely however is the main chance, that stocks have failed and now gravity is pulling them toward the earth's core like a tractor beam.

But y'all know you can't trust my opinion! I'm only a nat'ral born durned fool from Tennessee, and ain't even been wearing shoes but these last two years, and ain't never even seen a pair of them pointy-toed Gootchies them Wall Street magnets wear. But then, too, orphans & widders ain't in no danger of my stealing their last peck of corn meal, either.

Today gold shot up $14.70 (1.11%) to $1,339.20 on Comex and in the aftermarket kept on steamrolling to $1,342.30. High came at 1,244.10. Chart's here,

Now y'all listen to me, hear my words: gold has broken through the downtrend line from the 2011 high. That was the last barrier remaining to confirm the uptrend from the December 2015 low. Y'all think I'm the only person in America can read a chart? I heartily doubt it. And when them other chart-gazers look at that gold chart, they're gonna bust their cell phones running to buy gold.

Comex silver rose 12.6¢ (0.71%) to 1784.50, after hitting a high of 1800.1¢. Trading in the aftermarket at 1793. Some durn fool told y'all that onct silver commenced a-running, it warn't no big step from 1725¢ to 1866¢. Who was that anyhow?

Take a long gander at this silver chart,

Silver has confirmed that the December 2015 bottom was the low of the II correction wave. Minimum target for this move is 1850¢, although a little correction will intervene at some point. Twon't be nothing serious enough to wait on.

Gold has its eyes on $1,377, the July 2016 high. Might push plumb through it the first try, but more likely will knock on that door, wait and blow, then come back to knock it down.

Folks, we got us a gold and silver rally! Better climb on!

Many & manifold are the reasons I miss my dear wife Susan, not the least she did all the laundry. I threw it into a dirty clothes basket and it disappeared & several days later reappeared clean in my drawer and closet, bless her name.

Now I do the laundry.

Fitted sheets are my nightmare. They are a cotton anaconda waiting to wrap around my body and strangle me, a giant cloth squid with flailing tentacles that cannot be tamed, a fabric tarantula wrapping its hairy legs around my body. Some of you ladies PLEASE tell me, how do you fold a king size fitted sheet??

Susan had bought these three dryer balls. They're some soft-ball sized felt substance, suitable for dropping essential oils on to make your laundry smell good. So those balls kept looking at me, asking when I was going to drop some essential oil on them. This morning I ran up out of the basement and grabbed the bottle of lemon oil. Empty. I looked round and grabbed another, quickly but not carefully reading the label which was about the same color and ended in -N. Must be lemon.

I discovered not until I had dabbed it liberally on the dryer ball that it was CUMIN oil. Racing to correct my error, I found another bottle of lemon oil & dabbed the other dryer balls with it and threw all three back into the dryer, turned it on, and fled.

Now all my clothes smell like a wonderful lemony taco.

PRE-VACATION HOUSECLEANING SPECIAL OFFER: During the week of 10 through 16 September I will be vacationing and want to clean up my inventory before I go. My need is your gain, this stuff is priced to sell.


Everybody loves US silver dollars minted before 1936, but it's hard to find them properly graded. They are supposed to grade Very Good (VG) or better, but apparently a lot of dealers have eye trouble. These coins have no rim dings, no cuts, and they have full rims. I have thrown in a few Culls that do NOT grade VG or better.

I have one lot only with Eighty-four (84) pre-1905 Morgan dollars (0.765 oz fine silver) at $25 each, Nine (9) 1921 Morgan at $20.25 each, Twenty (20) Peace dollars at $18.50 each, Fifty-one (51) cull Peace or Morgan dollars at $17.25 each. Total including $35 shipping is $3,567.00. I am selling this lot "as is", and guarantee that all dollars except the culls grade Very Good or better.

LOT No. 2: 100 oz SILVER BULLION BARS & Rounds

This lot offers Two (2) one hundred ounce 0.999 fine silver bullion bars (might be JM, Engelhard, RCM, or any other IRA acceptable brand, ISO 9000 or 9001) at $1,866.00 each Plus 100 each one oz. 0.999 fine silver rounds at $18.93 each. Subtotal of $5,625.00 plus $35 shipping makes the grand total $5,660.00. That buys 300 troy ounces at a 4.6% premium.

I have only Three (3) lots available.

LOT No. 3: 100 oz SILVER BULLION BARS & Rounds

I have only twenty (20) only lots of one troy ounce .999 fine silver rounds, each consisting of One hundred (100) each one oz. silver rounds at $18.93 each. One lot totals $1,893 plus $35 shipping for a total of $1,928.00.

Special Conditions:

First come, first served, and no re-orders at these prices. I will write orders based on the time I receive your e-mail.

Sorry, we will not take orders for less than the minimum shown above.

All sales on a strict "no-nag" basis. We will ship as soon as your check clears, but we allow one week (7 days) for your check to clear. Calls looking for your order two days after we receive your check will be politely and patiently rebuffed. ORDERING INSTRUCTIONS:

1. You may order by e-mail only to No phone orders, please. Please do NOT order by replying to THIS email, because it will delay your email.

Your email must include your complete name, address, & phone number. We cannot ship to you without your address. Sorry, we cannot ship outside the United States or to Tennessee.

2. When you buy from us, we cannot later change or cancel the trade. We are giving you our word that we will sell at that price, & you are giving us your word that you will buy at that price, regardless what later happens in the market, up or down.

If you break your word to us, we will never again do business with you.

3. "First come, first-served" means that we will enter the orders in the order that we receive them by e-mail, till supply is exhausted.

4. If your order is filled, we will e-mail you a confirmation. If you do not receive a confirmation, your order was not filled.

5. You must send payment by personal check or bank wire (either one is fine) within 48 hours. It just needs to be in the mail, not in our hands, in 48 hours. Sorry, no credit cards.

7. "No Nag Basis" means that we allow Seven (7) days for personal checks to clear before we ship.

Want your order faster? Send a bank wire, but that's not required. Once we ship, the post office takes four to fourteen days to get the registered mail package to you. All in all, you'll see your order in about one month if you send a check.

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
5-Sep-17 Price Change % Change
Gold, $/oz 1,339.20 14.70 1.11%
Silver, $/oz 17.85 0.13 0.71%
Gold/Silver Ratio 75.046 0.296 0.40%
Silver/Gold Ratio 0.0133 -0.0001 -0.39%
Platinum 1,007.40 0.10 0.01%
Palladium 963.05 -18.10 -1.84%
S&P 500 2,457.85 -18.70 -0.76%
Dow 21,753.31 -234.25 -1.07%
Dow in GOLD $s 335.78 -7.38 -2.15%
Dow in GOLD oz 16.24 -0.36 -2.15%
Dow in SILVER oz 1,219.01 -21.89 -1.76%
US Dollar Index 92.26 -0.59 -0.64%
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: 1,342.30      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,350.35 1,360.35 1,360.35
1/2 AE 0.50 677.36 691.28 1,382.57
1/4 AE 0.25 352.09 360.74 1,442.97
1/10 AE 0.10 142.85 145.64 1,456.40
Aust. 100 corona 0.98 1,305.85 1,315.72 1,342.30
British sovereign 0.24 318.35 331.35 1,407.59
French 20 franc 0.19 248.10 252.10 1,350.30
Krugerrand 1.00 1,347.67 1,357.67 1,357.67
Maple Leaf 1.00 1,346.33 1,356.33 1,356.33
1/2 Maple Leaf 0.50 771.82 704.71 1,409.42
1/4 Maple Leaf 0.25 342.29 359.07 1,436.26
1/10 Maple Leaf 0.10 142.28 146.31 1,463.11
Mexican 50 peso 1.21 1,606.14 1,607.14 1,332.95
.9999 bar 1.00 1,344.30 1,356.30 1,356.30
SPOT SILVER: 17.93      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 21.00 24.00 31.37
VG+ Peace dollar 0.77 14.50 17.50 22.88
90% silver coin bags 0.72 12,605.45 12,891.45 18.03
US 40% silver 1/2s 0.30 5,112.35 5,260.35 17.83
100 oz .999 bar 100.00 1,803.00 1,828.00 18.28
10 oz .999 bar 10.00 178.80 331.48 33.15
1 oz .999 round 1.00 17.93 18.28 18.28
Am Eagle, 200 oz Min 1.00 18.93 20.08 20.08
SPOT PLATINUM: 1,007.40      
Plat. Platypus 1.00 1,017.40 1,052.40 1,052.40
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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.

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.

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