The Moneychanger
Daily Commentary
Wednesday, 20 December a.d. 2017 Browse the commentary archive

Sorry I've missed y'all these last two days. I had to finish my monthly Moneychanger newsletter for paid subscribers. All done now, ready to celebrate the Incarnation at Christmas.

SPECIAL OFFER: I am extending this special offer until 29 December or supplies are exhausted. these are Generic Silver Rounds, not the common Indian Head nickel imitation, and might have any sort of design like "Bon Voyage," "Happy Bar Mitzvah," "200th anniversary Founding of Tchula, Mississippi", etc. They are 0.999 fine silver and weigh one troy ounce. You can buy them for a lunatic-low premium of 46¢ over spot silver. We will take the spot silver price prevailing when you call and add 46¢. Minimum order is 120 ounces. Shipping is $25 per order, but free over 300 oz. To order, call (888) 218-9226. Thanks.

WHOA! Big heart stopper yesterday & today is the upside explosion in the 10 year T-note yield (and tanking of 30 year T-Bond price, as bond prices move opposite to yields). Take a gander, The purple line is resistance back to May 2017. That red line below it is the downtrend line from the 2007 high, before the Fed decided to take interest rates to zero. What signifieth all this? The Fed has been suppressing interest rates for 35 years, and you are watching the market take control of interest rates. The strength and duration of the snap-back will be in direct proportion to the suppression before. US bond market is twice the size of the stock market, and when interest rates ("yields") rise, bond prices fall. The longer the bond has to maturity, the sharper the fall. Look at the 30 year T-bond chart here, Utterly massive wealth destruction will follow as the bond-bubble blown up by the Fed bursts. THIS is a fulcrum of history.

CME Bitcoin futures fell $1,160 (6.450 to settle at $17,040. shows Bitcoin at $16,168.02, down $1,440.33 or 8.2%. Money flowed out of Bitcoin into lesser cryptocurrencies. Bitcoin cash rose 54.8%.

Market proverb saith, "Cats & dogs fly last." As a bull market peaks, the blue chips stall and hot money leaves them looking for a hotter return -- call it a flight OUT of quality. Money runs from blue chips to penny stocks & drives them crazy, AT THE PEAK. Just somethin' to think about. Probably don't mean nothin'.

US dollar index fell again today, 9 basis points (0.09%), now below 93 at 92.96. Dollar is acting awfully sickly. Absolutely MUST NOT break 91, or will vanish 'neath the waves like an anvil hurled overboard.

Stocks scootched down today. Dow lost 28.1 (0.11%) to 24,726.65 and the S&P500 lost 2.22 (0.08%) to close at 2,679.25. S&P Chart is here, Daily the end draweth nigh.

Dow in Gold, continues to roll earthward. Way to early to call a reversal yet, but it won't be long.

Comex gold rose $5.40 to $1,266.10, pushing through $1,262 resistance. Silver added 12.2¢ (0.8%) to 1618.8¢.

Gold first, We are reaching that time when trading virtually stops before the holidays. All the same, gold did close barely above it 200 day moving average. Still facing the possibility of a terror spike down toward $1,220. Rapid, solid gains would nix that.

Silver's chart, shows that it closed above its 20 DMA today. But the big story is that for both silver & gold last week's commitment of traders reports vastly improved, reducing commercial short levels to the levels at or near the July lows. Great, that's what we want for a strong bottom, lousy sentiment when all the speculators have given up and left the market. That is, the sellers have all sold.

Folks, gold and silver, especially silver, are setting up a spectacular rally.

A few days ago I asked y'all to help buying the Bibles that our church's jail ministry sends to jail and prison inmates. I am humbled by your many and generous responses. Thank you.

These are excellent and fairly expensive Study Bibles in the English Standard Version. I couldn't count the letters inmates have written thanking us for finally having a Bible they could read AND understand. These Bibles have everything needed for serious study: notes, cross references, book outlines, concordance, maps.

We don't just throw Bibles at people. When they request one, we send a letter asking them to vow to God and themselves that they will read it at least twice a day and pray when they do. To those who agree, we send a Bible. We also encourage them to form study & prayer groups of at least three inmates to change the culture there. Do they all keep the vow? Of course not, but some do, and become new men and women.

You would call these "very nice" Bibles with a leather cover -- best gift some of these folks have ever received. We bought 500 on an old edition close-out at $19, but that supply has been exhausted. We have to buy at least 500 and we'll have to pay $28 for these. We can't send the paperback because they are big, unwieldy, and fall apart.

If you have a family of five, twenty-eight bucks is about what you would pay for a meal at McDonald's. For you, it's not much, but for an inmate, many of whom have long ago alienated their families and sit destitute in prison, that Bible opens a window on a whole new universe and shows them that love is not a lie.

Every $28 you sent will buy anther Bible for an inmate, and yes, you can buy more than one. You can buy two or five or twelve or a hundred, as many as you like. We won't send back any checks because they're too big or too little.

Please make out and send your check to Christ Our Hope Reformed Episcopal Church, P.O. Box 178, Westpoint, Tennessee 38486. And thanks for patiently reading my request. Merry Christmas!

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
20-Dec-17 Price Change % Change
Gold, $/oz 1,266.10 5.40 0.43%
Silver, $/oz 16.19 0.12 0.76%
Gold/Silver Ratio 78.212 -0.258 -0.33%
Silver/Gold Ratio 0.0128 0.0000 0.33%
Platinum 920.60 7.40 0.81%
Palladium 1,037.95 6.00 0.58%
S&P 500 2,679.25 -2.22 -0.08%
Dow 24,726.65 -28.10 -0.11%
Dow in GOLD $s 403.72 -2.19 -0.54%
Dow in GOLD oz 19.53 -0.11 -0.54%
Dow in SILVER oz 1,527.47 -13.35 -0.87%
US Dollar Index 92.96 -0.09 -0.10%
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: 1,265.60      
GOLD Fine Tr.Oz. BID ASK $/oz
American Eagle 1.00 1,287.12 1,308.00 1,308.00
1/2 AE 0.50 644.95 667.60 1,335.21
1/4 AE 0.25 325.63 340.13 1,360.52
1/10 AE 0.10 132.78 138.58 1,385.83
Aust. 100 corona 0.98 1,231.24 1,240.54 1,265.60
British sovereign 0.24 300.16 313.16 1,330.32
French 20 franc 0.19 233.92 237.92 1,274.37
Krugerrand 1.00 1,271.93 1,281.93 1,281.93
Maple Leaf 1.00 1,273.60 1,289.60 1,289.60
1/2 Maple Leaf 0.50 727.72 664.44 1,328.88
1/4 Maple Leaf 0.25 322.73 338.55 1,354.19
1/10 Maple Leaf 0.10 134.15 137.95 1,379.50
Mexican 50 peso 1.21 1,514.36 1,525.36 1,265.13
.9999 bar 1.00 1,260.60 1,278.60 1,278.60
SPOT SILVER: 16.15      
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 11,154.00 11,440.00 16.00
US 40% silver 1/2s 0.30 4,572.50 4,719.50 16.00
100 oz .999 bar 100.00 1,595.00 1,630.00 16.30
10 oz .999 bar 10.00 163.00 168.00 16.80
1 oz .999 round 1.00 15.95 16.55 16.55
Am Eagle, 200 oz Min 1.00 17.40 18.15 18.15
SPOT PLATINUM: 920.60      
Plat. Platypus 1.00 935.60 965.60 965.60
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The Moneychanger, P.O. Box 178, Westpoint, TN 38486

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.