Best of the Week
Most Popular
1.War on Cash, Bank of England Planning Hyper QE, Scrapping Cash for Digital Currency - Nadeem_Walayat
2.Stock Market End Run Smash Crash Looks Imminent... - Clive_Maund
3.Europe Refugee Crisis, UK to Repatriate 120,000 Hungarian Economic Migrants Back to Hungary - Nadeem_Walayat
4.The Great Deflation Will Destroy All Bubbles – These Too - Harry_Dent
5.Deflation Signals Abound for U.S. Dollar, Forex Markets and Commodities - Rambus_Chartology
6.U.S. Housing Market Two Outs in The Bottom of The Ninth - James_Quinn
7.Poland, Czech, Slovakia and Hungary Refugee Hypocrisy After Flooding UK with 4 Million Economic Migrants - Nadeem_Walayat
8.The Two Real Reasons Crude Oil Prices Are Currently Slipping - Dr. Kent Moors
9.R.I.P. Interest Rates - Andrew Snyder
10.Steps from a Deep October Stock Market Selloff - Bob_Loukas
Last 5 days
Gold, Silver Precious Metals: a Critical Week Ahead - 5th Oct 15
Stock Market Correction Still in Force - 5th Oct 15
Gold Price Change in Character - 5th Oct 15
Putin’s Blitz Leaves Washington Rankled and Confused - 4th Oct 15
More Selling for Stock Market, Gold? - 4th Oct 15
Gold And Silver – A Reality Check - 3rd Oct 15
Stock Market Primary IV Still, or Primary V Underway? - 3rd Oct 15
The Oil Industry’s Day of Reckoning - 3rd Oct 15
U.S. Interest Rate Hikes Keep On Slippin' Into the Future; Treasury Yields Sink Again - 3rd Oct 15
China's Stock Market Crashing; Time for Panic or Restraint - 3rd Oct 15
SPX Stocks Bulls Struggle to Regain the Upper hand... - 2nd Oct 15
The Two Faces of Stock Market Volatility - 2nd Oct 15
Money Supply and the Fed’s Serious Inflation Risks - 2nd Oct 15
Stock Market How Bad Can This Get, And How Fast? - 2nd Oct 15
A Worrying Set Of Recession Signals - 2nd Oct 15
Negative Jobs Report Sents SPX, TNX Lower - 2nd Oct 15
Don't be Fooled by the Recent Equity market Rallies. Its a Bear Market, Stupid! - 2nd Oct 15
US Bond Market - How to Fix This - 2nd Oct 15
Survival Secrets from Colorado Resource Investing Front Lines - 2nd Oct 15
What Two Risks From Rising Interest-Rates Could Each Trigger A New Global Crisis? - 1st Oct 15
Stock Market S&P 500 Volatility-Based Price Probability Range - 1st Oct 15
Dow Stock Market About To Crash Like October 1929? Get Your Physical Silver - 1st Oct 15
Stock Market Negative Expectations Once Again - Will It Break Down? - 1st Oct 15
Advice for Biotech Investors: 'Hold Your Powder' 'til Winter - 1st Oct 15
Best Short-Term Commodity Market Opportunities - Video - 1st Oct 15
The Coming Corporate "Crime Wave" - 30th Sept 15
Stock Market Retracement May Have Run Its Course - 30th Sept 15
A Stocks Bear Market Is Now More Likely Than Not - 30th Sept 15
The Killer Ape, Human Evolution, Artificial Intelligence and Extinction End Game - 30th Sept 15
Junk Bond Market Imminent Collapse Threatens (Unwelcome) BIG Rate Rises - 30th Sept 15
Stocks: Why Following the Crowd is Usually a Big Mistake - 29th Sept 15
This Stocks Bear is Just Waking from Hibernation - 29th Sept 15
Interest Rates All Bad at 0%? - 29th Sept 15
If Stocks Can't Hold These Levels, We'll Have a Bear Market - 29th Sept 15
7 Bullish Gold Price Indicators - 29th Sept 15
Crude Oil Price Is Going to Fall by 50%… Again - 29th Sept 15
SPX Triggers a Amall Head & Shoulders Formation - 28th Sept 15
Stock Market Bubble Balloons in Search of Needles - 28th Sept 15
Gold and Silver, Precious Metals Complex Getting Interesting - 28th Sept 15
Economic Channels of Distress - Fourth Turning Crisis of Trust - 28th Sept 15
Stock Market Testing Important Levels - 28th Sept 15

Free Instant Analysis

Free Instant Technical Analysis

Market Oracle FREE Newsletter

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

© 2005-2015 - 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

Biggest Debt Bomb in History