The Moneychanger
Weekly Commentary
Friday, 15 December a.d. 2017 Browse the commentary archive
Here's the weekly scorecard:
  8-Dec-17 15-Dec-17 Change % Change
Silver, cents/oz. 1,573.60 1,597.80 24.20 1.5
Gold, dollars/oz. 1,245.20 1,254.30 9.10 0.7
Gold/silver ratio 79.131 78.502 -0.629 -0.8
Silver/gold ratio 0.0126 0.0127 0.0001 0.8
Dow in Gold Dollars (DIG$) 403.89 406.28 2.39 0.6
Dow in gold ounces 19.54 19.65 0.12 0.6
Dow in Silver ounces 1,546.08 1,542.86 -3.23 -0.2
Dow Industrials 24,329.16 24,651.74 322.58 1.3
S&P500 2,651.50 2,675.81 24.31 0.9
US dollar index 93.84 93.47 -0.37 -0.4
Platinum 882.80 888.50 5.70 0.6
Palladium 1,009.75 1,028.75 19.00 1.9

Odd week. Stocks kept rising, dollar index fell back, silver & gold rose for the week & probably put in their lows.

CBOE Bitcoin futures closed at 17,629.55, up 990.54 or 5.9%. presently shows $17,565.61, up 6.26%. Take your pick.

Dollar index today rose 42 bass points or 0.5% and put its heathen competitors to flight (Ha -- as if ANY fiat money could rank as anything other than heathen). This is the chart from yesterday and not updated for today' trading, Notice how the dollar index has fallen away from that 94 neckline/resistance. This is all weak.

Stocks today negated any suspicion of a downward reversal by soaring. Dow shot up 143.08 (0.58%) to 24,651.74. S&P500 rose 23.80 (0.9%) to 2,675.81. From the chart y'all can see stocks are reaching higher.

Comex silver rose 12.8¢ (0.8%) to 1597.8¢. Gold added a piddling 50¢ to $1,254.30.

Gold's chart shows it knifing into $1,262 resistance for three days, unable to cut its way through and close up there. Rate of Change, RSI, and MACD are all turning up, but volume has declined as the price has risen, not a sure recipe for further gains. And gold remains painfully below its 200 day moving average ($1,268.33), so its momentum is down.

Look at the silver chart, Indicators are also turning up while volume dwindles. However, silver has poked its head above that downtrend line from the July 2016 high. This is positive, even praiseworthy, but is only a whispering start at a climb.

I was driving breakneck down a hill near my house today and as I got to the bottom and crossed the bridge, what to my wondering eyes should appear but a bald eagle enjoying possum on the half shell (road kill armadillo). Yes, he flew up right in front of me and I got a splendid view of spreading tail feathers and beating wings. Bet y'all didn't know bald eagles are carrion eaters.

When Susan and I got married 50 years ago tomorrow, some friends thought it would be a neat trick to handcuff us together after the reception and send us on a scavenger hunt for the keys. Worse, Susan used to wear glass contacts (1967, remember) and somebody threw rice in her eye as we left, scratching it. By the time we got to her parents' house I had transformed into DR. DEATH and was able to persuade the person with the handcuff key that his health & longevity would be best served by handing over the key. Didn't take but about an hour after that for me to stop breathing fire, flames, & sulfur.

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
15-Dec-17 Price Change % Change
Gold, $/oz 1,254.30 0.50 0.0
Silver, $/oz 15.98 0.13 0.8
Gold/Silver Ratio 78.502 0.025 0.0
Silver/Gold Ratio 0.0127 0.0001 0.8
Platinum 888.50 8.20 0.9
Palladium 1,028.75 -13.30 -1.3
S&P 500 2,675.81 23.80 0.9
Dow 24,651.74 143.08 0.6
Dow in GOLD $s 406.28 2.24 0.6
Dow in GOLD oz 19.65 0.11 0.6
Dow in SILVER oz 1,542.86 -3.43 -0.2
US Dollar Index 93.47 0.42 0.5
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: 1,256.40      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,277.76 1,298.49 1,298.49
1/2 AE 0.50 640.25 662.75 1,325.50
1/4 AE 0.25 323.27 337.66 1,350.63
1/10 AE 0.10 131.82 137.58 1,375.76
Aust. 100 corona 0.98 1,222.29 1,231.52 1,256.40
British sovereign 0.24 297.97 310.97 1,321.05
French 20 franc 0.19 232.22 236.22 1,265.26
Krugerrand 1.00 1,263.94 1,273.94 1,273.94
Maple Leaf 1.00 1,264.40 1,280.40 1,280.40
1/2 Maple Leaf 0.50 722.43 659.61 1,319.22
1/4 Maple Leaf 0.25 320.38 336.09 1,344.35
1/10 Maple Leaf 0.10 133.18 136.95 1,369.48
Mexican 50 peso 1.21 1,505.63 1,516.63 1,257.88
.9999 bar 1.00 1,260.80 1,268.40 1,268.40
SPOT SILVER: 16.11      
SILVER Fine Tr.Oz. BID ASK $/oz
VG+ Morgan $B4 1905 0.77 22.50 25.50 33.33
VG+ Peace dollar 0.77 15.00 18.00 23.53
90% silver coin bags 0.72 11,157.58 11,443.58 16.01
US 40% silver 1/2s 0.30 4,559.23 4,706.23 15.95
100 oz .999 bar 100.00 1,590.50 1,625.50 16.26
10 oz .999 bar 10.00 162.55 167.55 16.76
1 oz .999 round 1.00 15.91 16.51 16.51
Am Eagle, 200 oz Min 1.00 17.61 19.11 19.11
SPOT PLATINUM: 888.50      
Platinum Platypus 1.00 903.50 933.50 933.50
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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.

Other Important Information

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