Tuesday, 8 July a.d. 2008
Caroline feels better today.  They  moved her to a still
lower grade of critical care, the Red Pod (sounds like a science
fiction movie).  Oxygen levels are good & this afternoon she
will be moved to a regular care floor!  She's not as mad as
she has been, and she's really improving.  Thank you all
for your continuing prayers.
Time to re-arrange our outlook for everything.
Try to picture this:  short counter-trend corrections in
metals & stocks, offering opportunities to shuck
stocks and buy metals.  Dollar index continues to trade
sideways, fooling friends & enemies alike.
The Dow climbed 152.25 today, taking stocks up to
11,384.  S&P gained even more.  Evidently stocks have
washed out their negative sentiment and intend to
rally.  First target is 11,650, then 11,750, then 12,200.
The Dow will surprise everyone if it proves able
to close above 12,200.  At least, it will surprise me.
Any rally in stocks offers you a chance to swap stocks
for silver & gold.  Don't miss this, probably your last, chance.
SILVER & GOLD dropped today.  Gold's low came at
912.05 and silver's at 1744 cents.  I never saw that price,
I saw 1752, so if you didn't grab it fast, you didn't get it.
Here's my guess about what we'll see.  Silver & gold
will spend a few days correcting, rally once again
nearly to the last high, then drop once more, casting
everyone into consternation.  Low might carry as low
as the 50 day moving average (now at 1714), but that
guess doth NOT constitute a recommendation to wait
to buy when it reaches that level.  The possible gain of
buying 50 - 60 cents lower is not worth the risk of
missing silver below 1800 altogether.  (Ditto gold,
for the chance of dropping to 905.  Not worth missing
it at 915.)
Somebody pointed out to me that some analyst
made the statement, "Gold will outperform silver."
Maybe in the short run, but not over the bull market's
life.  Before it ends, indeed, about the time it ends, you
will see only sixteen ounces of silver buy one ounce of gold.
Because the gold/silver ratio drops faster when stocks
are doing well, I am somewhat nervous about silver in
the short run.  But all sorts of things could happen (that is,
government surprise parties) to buoy stocks up briefly.
But long term, I'm as sure that silver will outperform
gold as I am about any future event.
On this day in 1932 the Dow Jones Industrial Average
reached its low for the Great Depression at US$41.22,
at that time almost exactly two (2) ounces of gold.
On 3 September 1929 the Dow peaked at US$381.17
(18.439 oz of gold), so in about 2-1/2 years the Dow
lost 89% of its value.  (Remember that then, a
ounce of gold equalled $20.6718, gold dollars.)
Measuring in the same gold dollars, on 25 August 1999
the Dow peaked at G$925.42 (44.767 oz).  Today it
closed at G$255.44 (12.357 oz), for a loss of 72.4%.
Sort of takes out the mystery when you use an
unchanging yardstick, doesn't it?
By the way, before it ends the Dow will again trade
at two ounces of gold or 32 ounces of silver -- or less.
Argentum et aurum comparenda sunt --
-- Silver and gold must be bought.
	- Franklin Sanders, The Moneychanger
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$-denominated
assets, primary trend down; real estate bubble has burst, primary trenddown.
Footnotes:
The US DOLLAR INDEX is a average exchange rate for the US dollar against the
Euro, Yen, Pound sterling, Canadian Dollar, Swiss Franc, and Swedish
Krona, weighted for each country's trade with the US.  It gives a general measure
of the US dollar's performance against all other currencies.
The DOW IN GOLD DOLLARS measures the Dow Jones Industrial Average in
gold dollars (0.048375 troy oz. by law).  The DiG$ 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, & 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.
8-Jul-08	Price	Change	CLOSES
Gold, $/oz	921.30	(5.40)	-0.6%
Silver,cents/oz	17.880	0.042	0.2%
Gold/SilverRatio	51.53	-0.424	-0.8%
Silver/Gold Ratio	0.01941	0.000158	0.8%
Platinum	1934.80	-26.70	-1.4%
Palladium	441.00	-6.50	-1.5%
S&P 500	1,273.69	21.38	1.7%
Dow	11,384.21	152.25	1.4%
DowInGOLD$s	$255.44	$   4.91	2.0%
Dow in GOLD oz.	12.357	0.238	2.0%
Dow in SILVER oz	640.10	10.44	1.7%
US Dollar Index	72.98	0.26	0.4%
NOTE:  The following are wholesale, not retail, prices.
To figure our  retail selling price,  multiply "Ask" price
by 1.035.  To figure  our retail buying price, multiply
"Bid" by 0.97.  Lower commissions apply to larger orders,
higher commissions to very small orders.
GOLD:	Fine Tr.Oz.	BID	ASK	Ask,$/oz.
American Eagle	1	945.25	952.25	952.25
1/2 AE	0.5	469.40	473.40	946.81
1/4 AE	0.25	236.43	239.93	959.71
1/10 AE	0.1	94.80	97.30	973.01
Aust. 100 corona	0.9802	893.15	900.15	918.34
British sovereign	0.2354	216.12	219.12	930.84
French 20 franc	0.1867	170.12	173.12	927.26
Krugerrand	1	919.48	929.48	929.48
Maple Leaf	1	917.64	924.64	924.64
1/2 Maple Leaf	0.5	472.86	476.86	953.71
1/4 Maple Leaf	0.25	237.58	241.08	964.31
1/10 ML	0.1	95.72	98.22	982.22
Mex 50 peso	1.2057	1,098.54	1,107.04	918.17
SILVER	Fine Tr.Oz.	BID	ASK	$/oz.
SilverDollarBags	0.765	16,500	18,500	24.18
90%SlvrCoinBags	0.715	12,395	12,645	17.68
US 40% silver 1/2s	0.295	4,937	5,062	17.16
100 oz..999 bar	100	1,789	1,829	18.29
10 oz. .999 bar	10	179.35	183.35	18.34
1 oz .999 rnd.	1	17.94	18.34	18.34
Am.Egl, 200oz. Min.	1	18.85	19.54	19.54
PLATINUM	Fine Tr.Oz.	BID	ASK	$/oz.
Plat. Am. Eagle	1	1,940	1,954	1,954
The Moneychanger
PO Box 178, Westpoint, Tennessee 38486
(888)218-9226; (931)766-6066; fax (931)766-1128
www.the-moneychanger.com
franklin@the-moneychanger.com
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.
While we are on the telephone, I will lock in a price and give you a contract
number.  That contract obliges me to sell and you to buy at that locked-in price,
regardless what later happens in the market.  If you buy when gold stands at $300
an ounce, whether it soars to $1,000 or drops to $100, you still bought it at the
price we fixed.  If you sell when silver stands at $5.00, you still sold and I still bought
at that price whether silver rockets to the moon or it gets so cheap they start
paying people to haul it off in trucks like sand.
In other words, when you make a contract with us, I am giving you my word, and you
are giving me your word, that we will faithfully complete the contract.  Just as when
you buy stocks or bonds, we cannot change or cancel the order once entered.
After you enter your order, you need to send us payment within forty-eight (48)
hours by personal check, United States Post Office (only) money order, or bank
wire.  If you send a check (whether cashier's check, bank check, bank money
order or your personal check) we will hold shipment for fourteen (14) days to allow
the check to clear.  Generally you will receive your order (shipped registered mail
or UPS) within  three to four weeks from order entry.
Against bank wires we ship immediately upon receipt.