Best of the Week
Most Popular
1.UK House Prices BrExit Crash NOT Likely Despite London Property Market Weakness - Nadeem_Walayat
2.BrExit Morning - New Dawn for Britain, Independence Day! - Nadeem_Walayat
3.LEAVE Wins EU Referendum - Sterling and FTSE Hit Hard, Pollsters, Bookies and Markets All WRONG! - Nadeem_Walayat
4.BrExit Implications for UK Stock Market, Sterling GBP, House Prices and UK Politics... - Nadeem_Walayat
5.Trading BrExit - Stocks, Bonds, Sterling, Opinion Polls, Bookmaker Odds and My Forecast - Nadeem_Walayat
6.FTSE and Sterling Brexit Trading, Deconstruction of the EU Referendum Result - Nadeem_Walayat
7.UK Interest Rate Cut to 0.25% Imminent and More QE Money Printing - Nadeem_Walayat
8.Trading BrExit - British Pound Plunges, FTSE Stock Futures Slump on LEAVE Shock Referendum Win - Nadeem_Walayat
9.The Stock Market is Reading it Wrong! - Chris_Vermeulen
10.Breakouts Galore in Gold and Silver - Jordan_Roy_Byrne
Free Silver
Last 7 days
Gold and Silver Bull Phase 1 : Final Impulse Dead Ahead - 30th July 16
SPX Stock Market Uptrend Resumes - 30th July 16
Gold And Silver – Merkel: Example Of How Clinton Is A Globalist Puppet - 30th July 16
Some Thoughts at the Stock Market Mountain Top - 30th July 16
Gold Stocks Benchmark Battle - 30th July 16
Top 10 Pokemon GO Playing Tips, Tricks and Secrets! - 30th July 16
Asset Bubbles Tend to Crash with a Vengeance - 29th July 16
Retirees Are Risking Their Life Savings on Junk Bonds - 29th July 16
The Next Recession is Coming - Expect Around 0% Returns for the Next 7 Years - 29th July 16
SPX is Shaking and Rolling - 29th July 16
Stock Market Insiders Are Secretly Selling, Cycle Top Next Month - 28th July 16
FOMC Interest Rates and Their Impact on the US Economy - 28th July 16
The State Of The Economy - 28th July 16
Elliott Wave Crash Course - 3 Ways the Elliott Wave Principle Enhances Your Trading - 28th July 16
Japan's "Helicopter Money" Play: Road to Hyperinflation or Cure Debt Deflation? - 27th July 16
Monetary Zika - The Insidious Nature of Credit Expansion - 27th July 16
Gold and Pork Bellies - 27th July 16
Silver Is Insurance Against The Worst Part Of This Depression - 27th July 16
Don’t Buy The SPX Hope Stock Market Rally! - 27th July 16
Bitcoin $650 Still in Play - 26th July 16
Deutche Bank Stock Price Crash - The EU Has Problems Far Beyond the Brexit - 26th July 16
The Forex Markets Are Getting Exciting! - 26th July 16
Underpriced Silver Is the “Rip Van Winkle” Metal - 25th July 16
Declines in Multiple Market Indexes - 25th July 16
Retailers Are Doomed as Most Americans Are Too Poor to Shop - 25th July 16
Here’s One Currency That Could Go to Zero - 25th July 16
Stock Market Top is Expanding - 25th July 16
Silver Manipulation – Because They Needed the Eggs - 25th July 16
Silver Market COT Stuns: What's Going On Here? - 24th July 16
Gold Demand Remains Stable During Sector Weakness - 24th July 16
Sernova, Diabetes and Haemophilia - 24th July 16
Russia: Tensions, Turmoil, and Western Hubris - 24th July 16
Soybean Commodity Price to Soar Again - 23rd July 16
SPX Stock Market Uptrend Continues - 23rd July 16
Gold And Silver – Debt Addiction Will Carry Precious Metals Higher, Guaranteed - 23rd July 16
Pokemon Go - How to Play, First Use, Balls, Stops, Catching Pokemon's... Great Excercise! - 23rd July 16
7 Signs That the Gold Market Remains Resilient - 23rd July 16
Basic Income in The Time of Crisis - 23rd July 16
Silver Bull Faces Correction - 22nd July 16
The Serious Warning No One’s Talking About - 22nd July 16
Stock Market Insight from Greed, Volatility, and Put/Call Ratio - 22nd July 16
What Will Happen To the Stock Market When Interest Rates Rise? - 22nd July 16
How to Escape the World’s Biggest Ponzi Scheme - 22nd July 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Power of the Wave Principle

Gold And Silver - Are You A Lion Or A Gazelle? You Had Better Know!

Commodities / Gold and Silver 2013 May 05, 2013 - 10:14 AM GMT

By: Michael_Noonan

Commodities

Every morning in Africa, a Gazelle wakes up knowing it must outrun the fastest lion, or it will be killed and eaten. Every morning a lion wakes up knowing it must outrun the slowest Gazelle, or it will starve to death. It does not matter if you are a lion or a Gazelle...when the sun comes up each morning, you'd better be running. African Proverb

We see the lions as issuers of fiat, Gazelles as owners of gold, and if you are uncertain as to which you are, the issuers of fiat will financially eat you alive. Cyprus was an overt wake up call. Many people in the U S think it will not happen to them. It already has. Each morning, when the sun comes up, you must decide if you want fiat or specie. One will slow down your ability to "run," the other will give you the ability to "outrun."


In the "Battle For Investment Survival," you have a choice to make, and your ability to survive depends on it. As Gerald Loeb recommended, "Put all you eggs in one basket, and watch that basket very carefully."

Switching analogies, central bankers, and specifically the privately owned corporation, aka the Federal Reserve, are like some cuckoo birds, the ones that deposit their eggs in another specie's nest. When the eggs hatch, the baby cuckoo bird will push out the other specie's newly born birds to their death, and the unsuspecting parents raise the cuckoo as its own.

At the time when the privately held Federal Reserve Bank [unconstitutionally] took control of the US money supply in 1913, currency was specie-backed by gold and silver. The egg had hatched. Over the ensuing decades, the Federal Reserve removed the gold backing behind United States Treasury Notes and had them destroyed. A few decades later, all silver-backed certificates were finally removed, no longer "honored." [It is difficult to use the word "honor" in federal world of dishonor.]

The unsuspecting public, like the unsuspecting new bird parents, came to accept fiat Federal Reserve Notes, [FRNs], as their own. The fiat-issue functioned the same as the gold and silver specie-backed United States Treasury Notes, buying and selling goods and services, etc, so the bait-and-switch was successful. [This is a classic example of how the NWO works, slowly over time, seemingly unperceptive, while almost no one pays close attention.]

Unlike Cyprus, the green light for world central bankers to loot the savings of bank depositors, the Federal Reserve central bankers have been looting the United States via inflation since its takeover in 1913. The [lack of] "value" of a FRN is about 3 cents of what a 1913 FRN was. [See US Purchasing Power Measured By Gold chart, click on http://bit.ly/11M9uj4, first chart]. Inflation has always been recognized as the most insidious and stealth means of stealing every form of a nation's wealth.

Central bankers have but one solution for a country with unmanageable debt: issue even more debt. Every country being force-fed that medicine is dying from it. The sole survivors will be the individuals who own the only successful antidote, gold and silver.

What has been the consistent and persistent target attack made by central bankers? Gold and silver, and none more overt than the one launched on 12 and 15 April by JP Morgan. Gold and silver are the antithesis of the destructive powers of central bankers. When all you own is fiat, central bankers can forcefully destroy its value through inflation, keeping its users in a captive mode of financial slavery. This has been and continues to be the end-game of the unelected elite, using the full force and control of central banks to keep the unsuspecting public compliant and unable to financially survive on their own.

The question of whether to buy gold and silver is an answer already known by almost all who read commentaries like this. Should you continue to buy more is a question, the answer to which is apparent to most. For us, it is the best way to survive what is going to be a worsening and even more brazen theft of whatever people have that is unprotected.

Obviously, everyone needs to rethink what is safe, for depositing fiat money in a bank has never been safe, as many are now just discovering. Every deposit into a bank is considered a loan to the bank. It becomes theirs, and the depositor is an unsecured lender, by bank laws, the only laws that matter, these days. Be very clear in understanding that reality.

If you do not hold it, you do not own it. We have repeated that frequently, as we have also said not to leave gold and/or silver in any institution, not just banks. Read this article about Operation Rize, from the London Evening Standard, [http://bit.ly/N4hdhR] . The first several paragraphs describe how several of the safe deposit boxes contained what may be illegal holdings, as though the unwarranted raid were justified by the legally limited, 3, number of actual warrants.

"...the vast majority of the 3,500-plus box owners have turned out to be innocent." They have been presumed guilty unless they can prove their innocence.

"Yet the true story of Operation Rize reveals something far more chilling - a virtually un- noticed change in the law that strikes at the very heart of the British justice system. Under the Proceeds of Crime Act of 2002 (known as POCA), valuables and cash above £1,000 are presumed by the police to be the proceeds of crime, unless you can prove otherwise, a total reversal of the presumption of innocence."

If you believe what happened in Cyprus will stay in Cyprus, what happened in London will stay in London, you are ignoring your future.

Will the price of gold and silver continue to go lower. We think they will. Does that mean you should wait before buying more? That has now become a personal decision that needs to be viewed in the context of what has been expressed above, and there are so many other instances that can be cited.

There is no single answer, no right answer. However, one to be considered is the "averaging down" concept. The notion is to average the cost of ownership of something over time. Usually, buying something that is going down is not a good practice. In this instance, it is different. It is a matter of fiat fraud by central bankers and a matter of survival by those in opposition.

What we know for sure is that those in power have power and will not give it up easily. They will destroy anyone who gets in their way. As central banker Draghi stated: "We will do everything in our power to save the Euro." He did not say "We" will do what we can to help out the people of any sovereign nation. No central banker ever would. You saw the form of their help in Cyprus. The sole objective is preservation of the [unelected, unrepresented] central banking cartel.

The charts of gold and silver may no longer reflect the reality of supply and demand, but they do serve a purpose to keep an eye focused on the success or failure of the Powers That Be in their destined-to-fail attempts to defend fiat currencies, at all costs, and reverse over 5,000 years of history of failure of such endeavors.

Our advice is to have a strategy to keep buying physical gold and silver, according to your own needs and circumstances, and be smart about it. Do not think you can outdo those who are in control, at least in the short run. Averaging down, in current circumstances, is a whole lot better than trying to pick a bottom.

As to the timing on when such a bottom may occur? It could well be years from now, and that should be a realization in your personal strategy. It could happen sooner, and most likely as a "surprise event," where the prices of gold and silver will take off in a manner that will defy belief. It can be anything in between. Laws may be instituted making the purchase of gold and silver akin to an "act of terror" against the government. No one knows how and when events will develop, and that is the point.

There is no right answer. You cannot control what others do, especially those in power. You can control what you do. Just keep buying, regardless of price, because if/when the price of gold and silver were to go lower, you may not be able to buy. If/when the price of gold and silver were to go higher, it may be at such an accelerated rate that any price in the past few years seem cheap.

Ask yourself, how good are you at outperforming the market? Then, act accordingly. Both gold and silver are now in confirmed downtrends. It takes time to turn around a trend, and nothing will happen otherwise until we see evidence that buyers are gaining control, which certainly is not the case.

April's wide range with a close in the middle may contain price behavior within it for the next several months. If the range does not capture price for a while, any break is likely to be lower.

The down channel is often a good barometer for how price may react at each line. Price held the lower channel, even with the onslaught on naked short selling of unprecedented amounts of gold that was impossible to deliver, which was not the intent, anyway.

You can see how price rallies, since October 2012, became weaker and weaker, unable to approach the upper channel line. Use that as a measure to see how subsequent attempts to rally compare. Keep in mind, weak rallies lead to lower prices. Last week's small range was not a sign of strength. Be wary of any rally ability to sustain itself.

We could see a reaction rally in the weeks ahead. If the ranges are small and volume declines, signs of a lack of demand, it can be a short-term selling opportunity in futures.

The monthly silver chart does not reflect what could be viewed as ending action for the decline. If/as price rallies, it may be more of a futures selling opportunity than a sign of recovery. As the structure stands, odds favor lower price attempts.

The chart comment speaks for itself. Depending on how price rallies back to the 26 area, it may be a clearer sign for shorting activity over the near term. The potential for shorting the market is for futures only and unrelated to one's plan for buying physical gold/silver.


By Michael Noonan

http://edgetraderplus.com

Michael Noonan, mn@edgetraderplus.com, is a Chicago-based trader with over 30 years in the business. His sole approach to analysis is derived from developing market pattern behavior, found in the form of Price, Volume, and Time, and it is generated from the best source possible, the market itself.

© 2013 Copyright Michael Noonan - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Michael Noonan Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

hannahgodfrey
07 May 13, 14:33
money printing madness

Love this African adage. It holds good in an economic situation as good as this. Good read. Nonetheless, the money printing madness seems like it will have a longer stay


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife