Tuesday, April 26, 2011

Gold and Silver Coins are Money

Gold Price Close Today : 1503.00
Change : (5.60) or -0.4%

Silver Price Close Today : 45.050
Change : (2.099) or -4.5%

Gold Silver Ratio Today : 33.36
Change : 1.366 or 4.3%

Silver Gold Ratio Today : 0.02997
Change : -0.001280 or -4.1%

Platinum Price Close Today : 1804.50
Change : -20.10 or -1.1%

Palladium Price Close Today : 751.90
Change : -7.90 or -1.0%

S&P 500 : 1,347.24
Change : 11.99 or 0.9%

Dow In GOLD$ : $173.23
Change : $ 2.24 or 1.3%

Dow in GOLD oz : 8.380
Change : 0.109 or 1.3%

Dow in SILVER oz : 279.59
Change : 14.90 or 5.6%

Dow Industrial : 12,595.37
Change : 115.49 or 0.9%

US Dollar Index : 73.77
Change : -0.231 or -0.3%

It pays always to keep your eyes on the horizon, so that the confusing details around you assemble themselves into a larger picture.

From a friend in Iowa I received an email reporting that a friend had gone to buy a US$7,300 piece of farm equipment. When it came time to pay, his friend asked the dealer, "Do you want paper, silver, or gold?"

The dealer brightened and said, "Silver, and I'll give you a discount if you pay in silver."

Behold, the new economy! Here behold the goal and means to free ourselves of the Federal Reserve's fiat money tyranny and economic slavery: we stop using their phony private money and return to [quite legal and constitutional] gold and silver money. We remove ourselves from the economic storms caused by their rotten currency and crooked banking and we rebuild our local economies on a sound silver and gold basis.

Just try it. Next time you pay, ask the person whether they want paper, gold, or silver. See what happens. Worst they can say is NO.

Also, the ever-sagacious Catherine Austin Fitts and I teamed up to create www.silverandgoldaremoney.com. There you can punch in any US dollar amount and in real time convert that to a payment in US 90% silver coin, US gold or silver American Eagles, or a host of non-US gold and silver coins and bullion.

Next time you hand somebody green paper dollars or a credit card, just remember: you are forging your own chains.

And forget the US government threats and persiflage: you have a constitutional and common law right to contract for any payment you please. More than that, all gold and silver coins ever minted by the US government remain "legal tender." Using gold and silver coin is not "bartering", it's MONEY.

You forge your own chains.


We trod not the office steps yesterday, but observed for Easter Monday. Considering yesterday's fireworks, that probably was a great idea.

I know y'all only want to know about silver and gold, but be patient: it all works together.

THE US DOLLAR INDEX has sunk 32.3 basis points since last Thursday, from 74.096 to 73.773. Today alone it lost 21.3 more bp, 0.27%.

Yet look not smugly on. Today the dollar formed a falling wedge, which promises that tomorrow, if it breaks not below 73.744, 'twill rise tomorrow.

And that would surprise. Breaking down past the last low, 73.74, and the December low, 74.23, targets the dollar for 72 or lower. The scabrous euro took advantage of the buck's swoon to rise to another new high for the move (ho-hum) at 1.4643, up 0.77%. Even the yen has gapped up and headed higher. Today it's trading at Y81.55/$ (122.62c/Y100).

Only sign this situation might turn around is that falling wedge on the dollar's daily chart.

Baldly stated, I don't believe the stock market, or more precisely, I DISbelieve the stock market. No economic reason exists for its rise, except the Fed and other central banks pumping out zillions of new money which all runs straight into financial markets. Add to that the Nice Government Men on the Plunge Protection Team steadily meddling in the market, following the Spirit of Potemkin to keep up a cardboard front screening the real and rotten economy.

Today the Dow rose to a new high for the move, 12,595.37, up 115.49. The S&P500 rose 11.99 to 1,347.24.

Hey, here's an idea! Instead of investing your money in stocks, why not take a couple hundred thousand bucks out into your back yard, bury it, and see if a money tree comes up?

There are very few overnight certainties in markets, but it appears that yesterday silver turned down, and gold will probably break as well.

The SILVER PRICE sank 10.5% from its 4985 high Monday to a 4464.7c low. One expects to see that sort of move on a trend reversing day.

I hasten to add that this is no certainty, as every forecast dwells in a foggy nimbus. But a quick calculation shows that if this is the break, then the target might be 3360.

Y'all must bear in mind that the more overhyped and overblown a market becomes, the more severe the following reaction. Every hedge fund in the world has hopped on to silver, and they have almost as much loyalty as a 1915 Irish draftee in the British army. They will dump silver by the truckloads as soon as they sniff a break.

The naïve think this is terrible, that the bull market has ended, that it proves silver is in a bubble. Nothing could be further from the truth. It is a normal process in every market, and clears away the grotesque over-optimism to make way for another advance.

Biggest argument AGAINST a correction in precious metals remains GOLD. It sank a paltry $5.60 today to close Comex at $1,503.00, but that offered no damage. The SILVER PRICE on the other hand fell 209.9c to 4505c, down 4.5% in one day. The gold/silver ratio fell 4.26%, too.

Once the gold price crosses that $1,500 wall protecting investor morale, it will tumble, too. Target there might be $1,445.

On the upside, the silver price needs to close over 5000c and gold above $1,525 to suggest that this rally hath yet legs.

On this day in 1983 the Dow Jones Industrial Average broke 1,200 for the first time. I recount that incident to impress upon y'all's minds how far markets can outrun our imagination. The ultimate Dow High was 11,722, about ten times that 1983 figure.

In Florida and Georgia today is Confederate Memorial Day. It was yesterday in Mississippi.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
Phone: (888) 218-9226 or (931) 766-6066

© 2011, The Moneychanger. May not be republished in any form, including electronically, without our express permission.

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 is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't.