Best of the Week
Most Popular
1.Stock Market Crash and Recession Indicator Warning: Extreme Danger Ahead - Harry_Dent
2. Is This How World War III Begins, In Almost Complete Silence? - Jeff_Berwick
3.Trump Wins 2nd Presidential Debate, Betfair Betting Markets Odds Bounce - Nadeem_Walayat
4.Why Krugman, Roubini, Rogoff And Buffett Dislike Gold - GoldCore
5.End of SPX Stock Market Correction Nears - Tony_Caldaro
6.Get Ready for the Future - Exponential Machine Intelligence Mega-trend towards Singularity - Nadeem_Walayat
7.US Housing Market Bubble II – It’s Happening Again! - Andy_Sutton
8.FTSE BrExit Stock Market Panic Crash Resolves towards New All Time Highs - Nadeem_Walayat
9.Can Trump Still Win Despite Opinion Polls, Bookmakers and Pundits all Saying Hillary has Won? - Nadeem_Walayat
10.Gold’s, Miners’ Stops Run - Zeal_LLC
Last 7 days
Stock Market Investment Success Through the “Investment Rule of 72” - 21st Oct 16
The Final Bottom in Gold - WHEN - 21st Oct 16
Gold Green Lights Upleg - 21st Oct 16
Demand for US Mints Silver Eagles has ‘Returned with a Vengeance’ - 21st Oct 16
Central Bankers Can't Stop The Death Blow Of The Post US Election Recession - 21st Oct 16
The Fortune at the Bottom of the Pyramid: Golden Opportunity for Frontier Asia - 21st Oct 16
Have You Taken These 4 Simple Steps to Improve Your Trading? - 21st Oct 16
The Stock Market is an Accident Waiting to Happen - 20th Oct 16
It's Rally Time for Gold and Silver Equities - 20th Oct 16
Cashless Society – Risks Posed By The War On Cash - 20th Oct 16
China's Insanely Leveraged Housing Market Will Enter Its Secular Bull Market In 2017 - 20th Oct 16
Donald Trump Bounces Going into 3rd and Final US Presidential Election Debate - 20th Oct 16
Attention Please: Phase Two of the Gold and Silver Train Now leaving the Station. All Aboard? - 19th Oct 16
How to Successfully Trade a Stock Market Crash - Black Monday October 19th 1987 - 19th Oct 16
Tesla, Apple and Uber Push Lithium Prices Even Higher - 18th Oct 16
Silver, Debt, and Deficits – From an Election Year Perspective - 18th Oct 16
UK Property Market: Slow Growth Does Not Equate To Decline - 18th Oct 16
Trump Election Victory is in Your Power - 18th Oct 16
Stock Market More to Come! - 18th Oct 16
This Past Week in Gold and Silver - 17th Oct 16
A Falling Stock Market Cannot Be Allowed - Financial Repression Is Now “In-Play”! - 17th Oct 16
Commodities, Forex and Stock Market Trend Forecasts - 17th Oct 16
Stock Market Crash..or No Crash? - 17th Oct 16
A perspective on risk rally – Risks abound but Stock Market is Confident - 17th Oct 16
Bank of England Blames Brexit for Sterling Drop Inflation, Masks QE Money Printing Cause - 17th Oct 16
From Piety to Pride to Pity, America's Racial Divide - 17th Oct 16
Is Obama Juicing US Government Spending To Get Hillary Clinton Elected? - 16th Oct 16
Seek Your Independence: Anything Else Will Destroy You - 16th Oct 16
SNL - US Presidential Debates, 1st, 2nd, VP - Like You've Never Seen them Before! - 16th Oct 16
End of Economic Growth Sparks Wide Discontent - 16th Oct 16
Donald Trump on Life Support, May Abandon Election Campaign and War on Republican Party - 15th Oct 16
The Gold Manipulators Not Only Will Be Punished, They Have Been Punished - 15th Oct 16
Black Votes Matter - Is the US on the Verge of Mass Race Riots? - 15th Oct 16
Gold Stocks Screaming Buy - 14th Oct 16
Brace Yourself for the Quadrillion-Dollar Reckoning - 14th Oct 16
The Next Recession Will Blow Out the Budget - 14th Oct 16
John Mauldin: My Infrastructure Plan to Save the US Economy - 14th Oct 16
World War III On The Brink: War Will Continue Until It Triggers Economic Collapse - 14th Oct 16
US T-Bill Rejection At Ports In Progress - 14th Oct 16
These 2 Debt Instruments Pose Peril to Millions of Investors - 14th Oct 16
China’s Rocketing Housing Market Real Estate Bubble - 14th Oct 16
DIY Winter Home Maintenance Money Saving 22 Point Checklist to Get Ready for Winter/Fall - 14th Oct 16
US Stock Market, Big Picture View - 13th Oct 16
Stock Buybacks Main Force Driving Bull Market; Rewards Investors and Starves Innovation - 13th Oct 16
SPX Gapping Down... - 13th Oct 16
Syria - Obama Stepped Back From Brink, Will Hillary? - 13th Oct 16
The Structure and Future of Gold in the Investment and Monetary World - 13th Oct 16
Can Trump Still Win Despite Opinion Polls, Bookmakers and Pundits all Saying Hillary has Won? - 12th Oct 16
Gold and Crude Oil - General Stock Market Links - 12th Oct 16
Samsung's Galaxy Battery Just The Tip Of The Iceberg - 12th Oct 16
Hillary: Deceit, Debt, Delusions (Part Two) - 12th Oct 16
Gold and Silver Metals Show Strength Relative to the USD Index - 12th Oct 16
Announcing Trader Education Week -- a Free Event to Help You Learn to Spot Trading Opportunities - 12th Oct 16
Confirmed Stock Market Sell Signals - 11th Oct 16
Hillary Deceit, Debt, Delusions - 11th Oct 16
Trump Support Crashes to New Low of 6.4 on Betfair Odds Betting Market - 11th Oct 16
The World Is Turning Dangerously Insular - 11th Oct 16
An American Tragedy: Trump Won Big - 11th Oct 16

Free Instant Analysis

Free Instant Technical Analysis

Market Oracle FREE Newsletter

LEARN to Trade

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


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

Michael Noonan,, 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 - 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

Catching a Falling Financial Knife