Best of the Week
Most Popular
1.Gold Price Crash Through Key Support, Crude Oil in Freefall - Clive_Maund
2.Marc Faber Warns Japan's Bond-Buying Program is a Ponzi Scheme - Bloomberg
3.Silver Price and Powerful Forces - DeviantInvestor
4.Stocks Bear Market Catastrophe as Stocks Flash Crash to New All Time Highs - Nadeem_Walayat
5.Marc Faber Warns Not to Hold Any Gold in the U.S. - GoldCore
6.U.S. Housing Market San Francisco at Critical Mass - Harry_Dent
7.Global Scramble For Silver - Coins “Hard To Get,” “Premiums Likely To Jump” - GoldCore
8.Major World Stock Market Indices Analysis: SPY, QQQ, DAX, FTSE, CAC, HSI - Michael_Noonan
9.Japan's kaput?! - Axel_Merk
10.Tesco Empire Strikes Back, £5 off £40 Discount Voucher Spend Explained, Exclusions Warning! - Nadeem_Walayat
Last 5 days
The Cultural and Political Consequences of Fiat Money - 20th Nov 14
United States Social Crisis - No One Told You When to Run, You Missed the Starting Gun! - 20th Nov 14
Euro-Zone Tooth Fairy Economics, Spain Needs to leave the Euro - 20th Nov 14
Ebola Threat Remains a Risk - New Deaths in Nebraska and New York - 20th Nov 14
Stock Market and the Jaws of Life or Death? - 20th Nov 14
Putin’s World: Why Russia’s Showdown with the West Will Worsen - 20th Nov 14
Making Money While The World Burns - 20th Nov 14
Why This "Quiet Zone" Is Now Tech Stocks Biggest Profit Sector - 20th Nov 14
My Favorite Stock McDonalds Just Got Kicked Off My “Buy” List - 19th Nov 14
European Economies in Perpetual State of Shock, What's Scarier Than Deflation? - 19th Nov 14
Breakfast with a Lord of War and Nuclear Weapons - 19th Nov 14
The U.S. Economy’s Ebb and Flow - 19th Nov 14
What You Need to Know Before Investing in Alibaba - 19th Nov 14
Forget About Crude Oil Price Testing 2009 Low - 19th Nov 14
What Blows Up First? Part 5: Shale Oil Junk Bonds - 19th Nov 14
Bitcoin Price Did We Just See an Important Slump? - 18th Nov 14
How to Profit From Oversold Crude Oil Price - 18th Nov 14
Stock Valuations Outrunning Profits Growth - And the Band Played On - 18th Nov 14
ECB Buy Gold Bullion? Japan's Monetary Policy Dubbed "Ponzi Scheme" - 18th Nov 14
Gold, Silver, Crude and S&P Ending Wedge Patterns - 18th Nov 14
How High Could USD/JPY Go? - 18th Nov 14
On Obama and the Nature of Failed Presidencies - 18th Nov 14
Globalism Free Trade Immigration Connection - 18th Nov 14
An Epiphany From Hell - Buy Gold and Silver - 18th Nov 14
Too Difficult to Get a U.S. Home Loan - 18th Nov 14
Has the Gold Bear Trap Been Set - 18th Nov 14
Gold Price and Miners Soar on Huge Volume - 17th Nov 14
Cameron Says Second Global Economic Crash is Loomin, Japan in Recession - 17th Nov 14
How to Play the Stock Market 2014 Year-End Rally - 17th Nov 14
What The Fed Has Wrought, Who Needs Wage Earners Anyway? - 17th Nov 14
Stock Market Indexes Fluctuate Along Record Levels - Will Uptrend Continue? - 17th Nov 14
Stock Market Trend Deceleration Tends To Precede Corrections - 17th Nov 14
Stocks Bull Market Set to Continue After Consolidation - 17th Nov 14
The World Is Run By Fools, And We Let Them - 17th Nov 14
Gold Price Golden Bottom? - 17th Nov 14
Gold Dragons Grand Strategy - 16th Nov 14
Gold and Silver 2015 Trend Forecasts, Prices to Go BOOM - 16th Nov 14
Stocks Bull Market Grinds Bears into Dust, Is Santa Rally Sustainable? - 16th Nov 14
Stock Market Inflection Point - 15th Nov 14
Gold And Silver – A Change In Suppressed Down Trend? - 15th Nov 14
Gold Market Capitulation? Not Likely - 15th Nov 14
The Most Valuable Stock Market Investment Secret of All - 14th Nov 14
Gold Stocks Apocalypse - 14th Nov 14
The Looming Uranium Crisis: Strategic Implications for the Colder War - 14th Nov 14
Stealth QE4 - Operation Tokyo Twist as Japan Sacrifices Pensions Funds - 14th Nov 14
My Secret Gold Strike Investing Strategy - 14th Nov 14
The Return of the U.S. Dollar - 14th Nov 14
Why Lower Crude Oil Prices Won’t Kill the Renewable Energy Boom - 14th Nov 14
The "Financial Mass Destruction" Investing Play Is All Upside - 14th Nov 14
Hyperinflation in the U.S.? - 14th Nov 14
Stock Market Year End Rally - 14th Nov 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Dramatic Stock Market Selloff

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

© 2005-2014 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