Best of the Week
Most Popular
1.The Brexit War! EU Fearing Collapse Set to Stoke Scottish Independence Proxy War - Nadeem_Walayat
2.London Terror Attack Red Herring, Real Issue is Age of Reason vs Religion - Nadeem_Walayat
3.The BrExit War, Game Theory Strategy for What UK Should Do to Win - Nadeem_Walayat
4.Goldman Sachs Backing A Copper Boom In 2017 - OilPrice_Com
5.Trump to Fire 50 US Cruise Missiles To Erase Syrian Chemical Attack Air Base, China Next? - Nadeem_Walayat
6.US Stock Market Consolidation Time - Rambus_Chartology
7.Stock Market Investors Stupid is as Stupid Goes - James_Quinn
8.Gold in Fed Interest Rate Hike Cycles- Zeal_LLC
9.The BrExit War - Britain Intelligence Super Power Covert War With the EU - Nadeem_Walayat
10.Marc Faber: Euro to Strengthen, Dollar to Weaken, Gold and Emerging Markets to Outperform - MoneyMetals
Last 7 days
EURUSD at a Critical Point in Wave Structure - 23rd Apr 17
Stock Market Grand Super Cycle Overview While SPX Correction Continues - 23rd Apr 17
Robert Prechter Talks About Elliott Waves and His New Book - 23rd Apr 17
Le Pen, Melenchon French Election Stock, Bond and Euro Markets Crash - 22nd Apr 17
Why You Are Not An Investor - 22nd Apr 17
Gold Price Upleg Momentum Building - 22nd Apr 17
Why Now Gold and Silver Precious Metals? - 22nd Apr 17
4 Maps That Signal Central Asia Is at Risk of War - 22nd Apr 17
5 Key Steps For A Comfortable Retirement From Former Wall Street Trader - 22nd Apr 17
Can Marine Le Pen Win? French Presidential Election Forecast 2017 - 21st Apr 17
Why Stock Market Investors May Soon Be In For A Rude Awakening - 21st Apr 17
Median US Household’s Wealth Has Declined by 40% Since 2007 - 21st Apr 17
Silver, Platinum and Palladium as Investments – Research Shows Diversification Benefit - 21st Apr 17
U.S. Stock Market and Gold, Post Tomahawks and MOAB - 21st Apr 17
An In Depth Look at the Precious Metals Complex - 20th Apr 17
The Real Story of China’s Strong First-Quarter Growth - 20th Apr 17
3 Types Of Life-Changing Crisis That Make You Wish You Had Some Gold - 20th Apr 17
The Truth is a Dangerous Thing - 20th Apr 17
2 Choke Points That Threaten Oil Trade Between Persian Gulf And East Asia - 20th Apr 17
Gold’s Next Downside Target Is Around $700… Even if It Breaks Up First - 19th Apr 17
SPX May be Completing its Corrective Pattern - 19th Apr 17
Silver Production Has “Huge Decline” In 2nd Largest Producer Peru - 19th Apr 17
Soothing East Asia's Nerves as Trump's Administration Reaffirms US Power in Asia-Pacific - 19th Apr 17
The Brexit War - Article 50 Triggered, General Election 2017 Called - Let the Games Begin! - 19th Apr 17
Plungers Big Trade - The Oil Short - 18th Apr 17
The Smart Money Is Piling Into Regenerative Medicine - 18th Apr 17
If You Invest In Stocks Now, Expect No More Than 3% Returns In The Next 20 Years - 18th Apr 17
Maps That Explain Wars In The Middle East And North Africa - 18th Apr 17
Theresa May Calls Snap BrExit UK General Election Capitalising on Crippled Labour Party - 18th Apr 17
Is US Economy at the Cusp of the Next Recession? or Maybe Worse? - 18th Apr 17
US Housing Market Mortgage Delinquency Rates Increase & 3X ETFs - 17th Apr 17
Trump US North Korea First Strike Smoke and Mirrors, China is the Real War Target! - 17th Apr 17
Now Is The Time To Invest In Canada’s Marijuana Boom - 17th Apr 17
History of the Post WWII Crude Oil Price From a Technical Perspective - 17th Apr 17
Stock Market Bounce Coming? - 17th Apr 17

Market Oracle FREE Newsletter

50+ Global Markets. Today's Top Opportunities. (April 12-20)

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

© 2005-2016 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

Catching a Falling Financial Knife