Best of the Week
Most Popular
1.SNP Offers Labour Deadly Death Embrace Alliance, Holding England to Ransom, Destroy UK From Within - Nadeem_Walayat
2.Gold And Silver – Most Widely Used Currency In Western World? Stupidity - Michael_Noonan
3.Election Forecast 2015 - Coalition Economic Recovery vs Labour Collapse - Nadeem_Walayat
4.Election Forecast 2015 - Debates Boost Labour Into Opinion Polls Seats Lead - Nadeem_Walayat
5.Why are Interest Rates So Low? Ben Bernanke, Confused as Ever, Starts His Own Blog to Prove It - Mike_Shedlock
6.Leaders Debate Election 2015 - Natalie Bennett Green Party Convincing Anti-Austerity More Debt Argument - Nadeem_Walayat
7.Labour Economic Collapse vs Coalition Recovery - UK Election Forecast 2015 - Video - Nadeem_Walayat
8.China’s Stock Market Mania; How High can Red-chips Fly? - Gary_Dorsch
9.Gold and Misery, Strange Bedfellows - 31st Mar 15 - Dan_Norcini
10.Ed Miliband Debate Election 2015 Analysis - Labour Spending, Debt and Economic Collapse - Nadeem_Walayat
Last 5 days
Sheffield Hallam Election Battle 2015, School Places Crisis, Can Nick Clegg Win? - 26th Apr 15
Stocks Bull Market Looks to Resume - 25th Apr 15
Gold And Silver - The U.S. Is A Corporation. Precious Metals Stand In The Way - 25th Apr 15
When the Nuclear Money Option Fails - 25th Apr 15
The War on Cash Special Report - 25th Apr 15
China Economic Slowdown Story - Why “Didi Dache” Is a Phrase You Need to Know - 25th Apr 15
The Trans-Pacific Partnership and the Death of the Republic - 25th Apr 15
Stock Splitting Caused the Stock Market Crash - 25th Apr 15
China Stock Market Parabolic Mania’s Global Risk - 24th Apr 15
What Will Happen to You When the U.S. Dollar Collapses? - 24th Apr 15
Why 2 of U.S. Dollar's Recent Bottoms Have 1 Thing In Common - 24th Apr 15
UK Economy Debt Timebomb Will Explode After Election - 24th Apr 15
Are Gold Stocks the Cheapest Ever? - 24th Apr 15
God, the Stock Market and Pascal's Wager - 24th Apr 15
Greedy Insurers Are in for a Nasty Surprise – Positioning You for Big Profits - 24th Apr 15
Four Things Missing From Obama’s First-Ever Energy Review - 24th Apr 15
How to Grow a Regenerative Medicine Industry - 23rd Apr 15
Stocks and Bonds Seven Year of Negative Returns; Fraudulent Promises - 23rd Apr 15
The Existential Danger To The Euro Is Elections - 23rd Apr 15
Stock Market No Clear Direction As Investors React To Quarterly Earnings Releases - 23rd Apr 15
Is China The Next United States? - 23rd Apr 15
U.S. Oil Glut: How High Can It Go? - 23rd Apr 15
Distorted Financial System Expect Deflation, Inflation And Hyperinflation - 23rd Apr 15
What McDonald’s Corporate Earnings Report Is Really Telling You - 23rd Apr 15
Gold Price Forecast to Become Priceless - 23rd Apr 15
FDIC Plots a Bank Heist Involving YOUR Accounts - 23rd Apr 15
$GOLD Price Year 2007 Again - 23rd Apr 15
Stocks Bubble - The Spread between Stock Prices and GDP is Blowing Out - 23rd Apr 15
Ukraine War - When Did We All Become Murderers? - 23rd Apr 15
Libya Crisis - EU Leaders Are Indicted for Nazi-Style Crimes against Humanity - 22nd Apr 15
Why Alternative Energy Isn’t Taking It on the Chin Despite Low Oil Prices - 22nd Apr 15
Bill Gross - German 10-Year Bunds Short of a Life Time - 22nd Apr 15
How to Profit from the Drop in the Oil Price - 22nd Apr 15
The U.S. Dollar's Move Is More Dangerous than You Think - 22nd Apr 15
Apple Watch Means Apple Will Become Worlds First $1 Trillion Stock - 22nd Apr 15
Half a Stocks Bubble Off Dead Center - 22nd Apr 15
They Said Go to College - Learning to become Debt Slaves - 22nd Apr 15
Best Cash ISA 2015/16, Instant and Fixed Savings Interest Rates, New Flexible Withdrawal / Deposit Rule - 22nd Apr 15
Unsound Banking: Why Most of the World's Banks Are Headed for Collapse - 21st Apr 15
Bitcoin Recent Low Price Volatility Might Be Deceptive - 21st Apr 15
Currency Wars Back As Russia Buys Gold - One Million Ounces in March Alone - 21st Apr 15
The Greece 'Grexit' Issue and the Problem of Free Trade - 21st Apr 15
Why Europe Lets People Drown - 21st Apr 15
Wealth Destruction for the 99.9 Percent - 21st Apr 15
SNP Publish England's Suicide Note as Pollsters Still Forecast Labour-SNP Election Disaster - 21st Apr 15
Characteristics of Extremely Over-Indebted Economies - 21st Apr 15
Trader Education Week -- a Free Event to Help You Learn to Spot Trading Opportunities - 21st Apr 15
Gold & Silver Alert: Silver Stocks’ Signal - 20th Apr 15
Now is the Time to Buy Resource Stocks, Especially Gold Equities - 20th Apr 15
DJ Transportation & Utility Averages Suggest Stocks Bull Market Is Over - 20th Apr 15
Crude Oil Price Bull Market Hope - 20th Apr 15
Stock Market Bears Get Slaughtered Despite Greece Counting Down to Grexit Financial Armageddon - 20th Apr 15
The Rise of the Paper Machines - 20th Apr 15
Gold and Silver Inflection Point - 20th Apr 15
SP500: A Butcher's Stock Market (Chop Chop Chop) - 20th Apr 15
Are Stock Market Bears Slowly Gaining Control? - 20th Apr 15
Sugar Commodity Price Bear Rally - 19th Apr 15
Avoid the Spread of the Stock Market "China Syndrome" - 19th Apr 15
Stock Market Going Nowhere Fast - 19th Apr 15
An Easy Way to Profit From the Two Biggest Trends in the Stock Market - 19th Apr 15
No Scripture Is Divine, Authentic and Beyond the Creation of the Human Brain - 19th Apr 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

US Historic Bubble

Gold And Silver Sell Off Could Get Uglier And Take Longer

Commodities / Gold and Silver 2013 May 11, 2013 - 11:19 AM GMT

By: Michael_Noonan

Commodities

The realistic general consensus is that the spot prices for gold and silver are no longer relevant. Yet, what remains the one price on which focus has intensified for each? There simply is no other alternative, at present. A distinction is made concerning the purchases by China, Russia, India, et al, paying a larger premium over spot gold, prior to the sell-off, and prices paid by those purchasing single ounce coins or even kilo bars, "the people," as it were.


Purchases made by the tonne, from the countries mentioned, are not reported in a way that can be measured, and in fact, those purchases are not publicly reported. While the reports of unprecedented demand for both gold and silver on a world-wide basis in response to the attack on longs, last month, continues, we think the New World Order, [NWO], and its vast infrastructure, IMF, UN, Basel, central bankers, all governments in the West under its control, is not overly concerned about the man-on-the-street demand.

The next chapter has yet to be written. One thing is likely to be certain, it will get uglier. Think of the people of Cyprus and how they are suffering at the hands of unelected, non- representative outsiders, the NWO executioners imposing austerity restrictions to pay for the sins of the bankers.

It used to be the "Golden Rule" was, He who has the gold rules. That has been replaced with, He who controls the purse strings dictates. The shocking reality of the latter will become more prevalent, one country at a time. Central bankers will default and make it appear the fault of the paper holders. What are you going to do about it?!, will be their attitude. All the central bankers are doing, under the protection of governments, is stalling for time as they get their end-game in place. What is that end-game? Securing their stranglehold on power over the failing Western countries so that they remain in power.

The golden Ponzi scheme may be unraveling, but do not expect China, Russia, India and other countries to put immediate pressure on the central bankers. They are far more cunning and patient as they smell blood, and they know that in the end, they will extract far more from the failing power of the West. The BRICS countries are building their own trade relations, cutting out the fiat Federal Reserve Note as a world reserve currency. So let the central bankers manipulate the price of gold and silver as much as they want, for as long as they want. It will simply make it more rewarding for the newly rising Eastern powers when the fraud's final chapter is written.

We see this as a Cliff Note version that the general public fails to consider and instead, expects a demise of the COMEX and LME as the catapulting catalyst for substantially higher gold and silver prices. Based upon these questionable expectations, the public will not be prepared for what could take a few more years to develop, and the potential for yet much lower prices for both gold and silver. This certainly is not a blueprint of the future, but a conjecture of what could happen, in one form or another. In the end, no one knows how this will turn out, other than a strong belief that it will get worse before it gets better.

Gold and silver can become illegal to use in public trade or barter. Anyone caught could be branded as a "financial terrorist" as governments continue to crack down on any form of opposition to their fiat enslaving control. Anyone "caught" with more than "x" ounces of gold or silver will have to prove it was legally purchased or risk confiscation. War, on a wider scale, cannot be ruled out as a "diversion" often used by the NWO ilk. No one knows.

For all the short-comings of the paper prices reported by the COMEX and what resulting charts, are saying, they will be used until something better comes along. Regardless of what the charts show, one should continue to buy physical gold and silver, [and personally hold it], on a regular basis. Fiat currencies will continue to be debased by governments. A failing fiat and falling gold and silver prices cannot continue indefinitely, and the fiat will be the ultimate loser. Those who continue to hold paper anything, may be subject to near total loss.

Inflation is already guaranteeing losses with the fiat FRN losing 35% just on the past decade. Then there is the consideration of being "Cyprused" in your bank accounts, stock accounts, futures accounts, [MF Global], and pensions. Gold and silver remain the best alternatives.

There is nothing conclusive for initiating a position in the futures in either direction. We stated previously that the wide range bar of 15 April is likely to contain price activity for some time, now into the third week. Price is holding the support channel line, but rally attempts have not been strong. It does not mean price cannot go higher, next week, but there is no new demand that says to be a buyer in futures.

Friday's close on the daily was under the last 10 days of buying effort. No reason to buy. We would like to see a failed rally above 1500 to be a seller.

How price responds around a support or resistance is an important market clue. Right now, silver cannot rally higher and away from a support area, and that suggests support may not hold.

The daily chart does little to clarify direction, although one has to keep in mind that sellers are still in control. The clustering of closes sends a mixed message, as noted on the chart.

The clearest scenario is the ongoing purchase and accumulation of physical gold and silver as a store of value against an increasingly uncertain future.

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

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

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

Free Report - Financial Markets 2014