Friday, 2 July  a.d. 2009
Here's the scorecard for the week:
	26-Jun	2-Jul	Change	% change
Silver, cents/oz.	1412.8	1339.4	-73.40	-5.2%
Gold, dollars/oz.	940.70	930.70	-10.00	-1.1%
Gold/silver ratio	66.58	69.49	2.90	4.4%
Silver/gold ratio	0.01502	0.01439	-0.00063	-4.2%
Dow in Gold Dollars (DiG$)	$             185.43	$            183.92	$            (1.51)	-0.8%
Dow in gold ounces	8.970	8.897	-0.073	-0.8%
Dow in Silver Ounces	597.28	618.24	20.961	3.5%
Dow Industrials	8,438.39	8,280.74	-157.650	-1.9%
S&P500	918.20	896.42	-21.780	-2.4%
US dollar index	79.828	80.284	0.456	0.6%
Platinum	1,205.50	1,188.70	-16.800	-1.4%
Palladium	246.25	250.30	4.050	1.6%
Remember that a long holiday weekend,
such as the one we're facing, takes people out
of the market.  They close out positions before
they leave for the weekend, and put those
positions back on when they return on Monday.
Anyway, next week is dangerous for currencies
& metals, because of the Gang of 8 meeting in
Italy.
OW!  Stocks lost a whopping 223 Dow points
to close at 8,280.74.  S&P500 dropped 26.9 and
wound up at 896.42.  As I said yesterday, the
Dow will see 8,200 before it sees 8,600.  In fact,
it may see 7,800 before it sees 8,600.
In spite of a 60 basis point rise today, the
US DOLLAR INDEX remains in a downtrend.
It must close above 80.50 to break out of
that downtrend.  Personally, I think it's time
for another re-design of American currency.
Besides, those old dead presidents don't
swing any weight any more, so to re-align
pictures on the dollar with current political
realities, I think we ought to put pictures of
people on the dollar who really run things.
I suggest the new bills feature pictures of the
past presidents of Goldman Sachs, & we
print a new denomination, the $3 bill, with
Little Timmy Geithner's picture.
Look at the 5 day gold chart.  Gold keeps hitting
the wall at 945 and skidding to a stop about 925.
In other words, its range bound between 945 &
925.  Sooner or later it will break out, one way
or the other.  Either way, it will make a quick,
substantial move when it does break out, to
$900 or to $1,000.  Today it dropped 10.30
to close at US$930.70 on Comex.
Silver must be somewhere near a bottom.
The gold silver ration has moved to a shocking
69.5.  How much higher an it go?  This looks like
a good spot to swap gold for silver.  Other
indicators show the ratio is about to peak,
although silver may drop further.  Still, I'm
guessing it won't drop below 1300 -- assuming
gold doesn't drop below 900.
One other tiny item in silver's favour:  the
premium on US 90% silver coin is creeping up.
That says holders are unwilling to part with
their silver at these prices, usually a sign of
a bottom, but not a terribly timely one always.
Gold and silver are in a long term bull market,
so buy the dips, buy the dips!
We will be closed tomorrow for the Fourth of
July holiday.  Next week, 6 July -8 July, I will be
travelling with my son to New Hampshire to
search for a new Scotch Highland bull.
In 1835 in Paterson, New Jersey children went on
strike seeking a more equitable 11-hour workday
and six-day workweek.  Little stinkers probably
wanted food, too.
Y'all enjoy your weekend.
Argentum et aurum comparenda sunt --
-- Silver and gold must be bought.
	- Franklin Sanders, The Moneychanger
© 2009, 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 $1,250.00; silver's primary is up
targeting 16:1 gold/silver ratio or $78.13; stocks' primary trend is down,
targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated
assets, primary trend down; real estate in a bubble, primary trend way down.
Footnotes:
The US DOLLAR INDEX is a average exchange rate for the US dollar against the
Euro, Yen, Pound sterling, Canadian Dollar, Swiss Franc, and Swedish
Krona, weighted for each country's trade with the US.  It gives a general measure
of the US dollar's performance against all other currencies.
The DOW IN GOLD DOLLARS measures the Dow Jones Industrial Average in
gold dollars (0.048375 troy oz. by law).  The DiG$ 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.
2-Jul-09	Price	Change	CLOSES
Gold, $/oz	930.70	(10.30)	-1.1%
Silver,cents/oz	13.393	(0.347)	-2.5%
Gold/SilverRatio	69.49	1.005	1.5%
Silver/Gold Ratio	0.01439	-0.00021	-1.4%
Platinum	1188.70	-4.00	-0.3%
Palladium	250.30	-1.00	-0.4%
Dow	8,280.74	-223.32	-2.6%
DowInGOLD$s	$183.92	$  (2.87)	-1.5%
Dow in GOLD oz.	8.897	-0.139	-1.5%
Dow in SILVER oz	618.66	-26.91	-4.2%
US Dollar Index	80.28	0.61	0.8%
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	961.15	971.15	971.15
1/2 AE	0.5	488.72	498.72	997.45
1/4 AE	0.25	246.69	N/A	#VALUE!
1/10 AE	0.1	100.54	N/A	#VALUE!
Aust. 100 corona	0.9802	907.91	916.91	935.43
British sovereign	0.2354	226.13	236.13	1,003.12
French 20 franc	0.1867	180.80	190.80	1,021.96
Krugerrand	1	951.85	961.85	961.85
Maple Leaf	1	947.90	965.90	965.90
1/2 Maple Leaf	0.5	487.56	493.38	986.75
1/4 Maple Leaf	0.25	244.36	246.69	986.75
1/10 ML	0.1	98.21	100.54	1,005.37
Mex 50 peso	1.2057	1,116.68	1,126.68	934.46
SILVER	Fine Tr.Oz.	BID	ASK	$/oz.
SilverDollarBags	0.765	14,000	15,500	20.26
90%SlvrCoinBags	0.715	9,570	9,713	13.59
US 40% silver 1/2s	0.295	3,772	3,947	13.38
100 oz..999 bar	100	1,339	1,389	13.89
10 oz. .999 bar	10	131.85	142.85	14.29
1 oz .999 rnd.	1	13.39	14.49	14.49
Am.Egl, 200oz. Min.	1	14.64	15.64	15.64
PLATINUM	Fine Tr.Oz.	BID	ASK	$/oz.
Plat. Am. Eagle	1	1,188.70	1,288.70	1,288.70
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.