Best of the Week
Most Popular
1.Bitcoin War Begins – Bitcoin Cash Rises 50% While Bitcoin Drops $1,000 In 24 Hours - Jeff_Berwick
2.Fragile Stock Market Bull in a China Shop -James_Quinn
3.Sheffield Leafy Suburbs Tree Felling's Triggering House Prices CRASH! - Nadeem_Walayat
4.Bank of England Hikes UK Interest Rates 100%, Reversing BREXIT PANIC Cut! - Nadeem_Walayat
5.Government Finances and Gold - Cautionary Tale told in Four Charts - Michael_J_Kosares
6.Gold Stocks Winter Rally - Zeal_LLC
7.The Stock Market- From Here to Infinity? - Plunger
8.Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - MarketsToday
9.Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom - Stewart_Dougherty
10.Finally, The Fall Of The House Of Saud - Jim_Willie_CB
Last 7 days
Sheffield's 'Real' LORAX Defending the Trees From the Labour City Council Patrol Units - 15th Dec 17
Stock Market Decline Signals are Near - 15th Dec 17
Santa Is Putting Christmas On The Blockchain And Saving Billions - 14th Dec 17
The Unprotected, the Protected, the Vulnerably Protected Classes—Which Are You? - 14th Dec 17
Gold’s Upside Target - 14th Dec 17
Year-end US Interest Rate Hike Again Proves To Be Launchpad For Gold Price - 14th Dec 17
2 Charts That Might Define the Fed’s Jerome Powell Era - 13th Dec 17
UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - 13th Dec 17
Stock Market Elliott Wave Forecasts - Is the World coming to the end? - 13th Dec 17
A Method Traders Can Use to Confirm an Elliott Wave Count - 13th Dec 17
Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - 13th Dec 17
A Former Wall Street Veteran: Good Traders Are Born, Not Trained - 12th Dec 17
Buy Gold, Silver Time After Speculators Reduce Longs and Banks Reduce Shorts to Continue? - 12th Dec 17
Masters of Economic and Political Illusion – in Taxes, Debt, Government, and Markets - 12th Dec 17
Approved Used Land Rover Main Dealer Real Customer Buying Guide - Hunters, Chester - 12th Dec 17
Gold Price 100% Bullish Signal - 12th Dec 17
Epic Stock Market & Fixed Income Bubble Will Not End Well - 12th Dec 17
Bitcoin can be stolen. Although Can’t be hacked - 11th Dec 17
Have Stocks Reached A Permanently Rigged Plateau? - 11th Dec 17
Trying To Beat The System Is A Fatally Flawed Investment Strategy - 11th Dec 17
Is This The Beginning Of The Next Silver Rush? - 11th Dec 17
The Dow Gold Ratio - 11th Dec 17
Evidence of a Stock Market Top Mounting - 10th Dec 17
Bitcoin Doesn’t Exist – Forks and Mad Max - 10th Dec 17
Bitcoin Doesn’t Exist – Putting the Banks Out of Business - 9th Dec 17
China’s Struggle for Market Economy Status - 9th Dec 17
Is Gold Really Strong? - 9th Dec 17
Bitcoin Parabolic Mania - 8th Dec 17
SPX Make a 61.8% Retracement - 8th Dec 17
Gold, Stocks and Bonds - The 3 Amigos Update - 8th Dec 17
Gold Stocks Break, Gold to Follow - 8th Dec 17
4 Charts That Show How Trump Tax Cuts Will Trigger A Recession - 8th Dec 17
Precious Metals Breaking Down! 3 Amigos to Abort? 4 Horsemen to Ride? - 7th Dec 17
Bitcoin Just Smashed Through $12k… Wait, $13k… Now $14k… This Is Getting Ridiculous! - 7th Dec 17
Stock Market Tops Look Like This - 7th Dec 17
Crude Oil, Oil Stocks and Invalidation of Breakouts - 7th Dec 17
Bitcoin Doesn’t Exist – 2 - 7th Dec 17

Market Oracle FREE Newsletter

Traders Workshop

Gold And Silver True Story Is All About Time - Be Prepared

Commodities / Gold and Silver 2013 May 19, 2013 - 06:10 PM GMT

By: Michael_Noonan

Commodities

We are going to start off with one of the most eye-popping pictures of just one central bank, the privately owned corporate Federal Reserve, and its purported gold holding. Occasionally, we drop a bit of history that most people either ignore or simply do not believe, but this one cannot be conveniently shunted aside.

One of the provisions in the FEDERAL Constitution, the 14th Amendment, [the original, organic Constitution had only 10 provisions, aka The Bill Of Rights], a hornet's nest for an unsuspecting public, we our focus in on the one germane to the graph below. It is found in Section 4:


The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

Now, who do you suppose created the public debt by loaning out, first money, then fiat, and now just computer entries?

Who do you suppose is responsible for it?

The question few people think to ask is, Who had it inserted? The NWO works in mysterious ways. but always lethal to the interests of the remaining 99.5%

Now, look below at the chart to get an idea of the magnitude of the outstanding debt that will never be repaid! We do not believe the gold holding claimed is accurate, [if any gold alleged to be held exists, at all], but we do believe the debt portion is accurately depicted. In fact, it has grown larger since December 2012.

Gold versus Public Debt Chart

This is all about a banking crises! Gold and silver are being held as hostages.

The central bankers have their overly-rehypothecated teat caught in the wringer of world- wide demand for physical gold, and they cannot get it out. Their only recourse has been to drive down, crush would be a better description, the fiat [paper] prices of gold and silver so they can "buy" time to acquire whatever physical available to cover their cheating ways.

Ironically, while these financial fiat-wizards are in a panic mode, of sorts, they are able to buy physical at somewhat lower prices and destroy the ability to take delivery for those if- you-do-not-hold-it-you-do-not-own-it paper holders upon demand. "Sorry, but you can only have paper fiat. Didn't you read the fine print?"

As we have been saying since 35 silver, 1800 gold; 30 dollar silver, 1700 gold; 25 silver, 1500 gold, etc, the issue is not price, rather, and most importantly, it is all about having possession of the physical for which there is an insatiable demand. We have been saying this for many months: keep buying physical gold and silver regardless of price. At some point in time, it may not be available to buy, except at substantially higher prices, or not at all. Better to be the proverbial year early than a day late.

Over the last several years, gold and silver have steadily been moving into stronger hands in its flight from greedy, cavalier, and arrogant central bankers who never saw this coming. Why not? They have been habitual drinkers of their own cool-aid.

Who comprises the stronger hands? Well, everyone knows about China, Russia, India, Turkey, etc, but now there are the not-previously-considered-as-consequential man and woman on the street. Compelling, unprecedented demand has surfaced on the streets of so many countries around the world with people buying ounces and kilos, as they can afford, and these little buyers are no less adamant in their desire to own and hold physical gold and silver as are the larger Eastern countries.

However, the numerous stories about shortages of 1 ounce gold or silver coins/bars, on up to kilo size, people waiting in line for hours to buy what they can, etc, may make for good press and seem like a "feel good" story, but in the battle for supremacy of control, the long lines and unprecedented buying have done little to nothing in preventing the fall in paper prices of gold and silver.

You think the central bankers are caught in a corner with no gold? Well, yes, but that is not the story. If they cannot deliver gold or silver, they will find another way out. You have seen their strategy: MF Global, Cyprus, and more on the drawing board, coming soon to your own [any] country.

Under normal circumstances, when supply is short and demand is strong and growing, the price of such a commodity, good, or service will increase. Just the opposite is happening in the gold and silver markets. For right now, the central bankers are defying the natural law of supply and demand, and it is working. Why is it working? People are not objecting! People are passively taking whatever the NWO/central bankers dish out.

What has been the fall out for the brazen theft of segregated accounts at MF Global? Nothing! What has been the fall out of Cypriot account holders who saw their bank and savings accounts held hostage by the outside European Commission, an organization that has no lawful standing in that sovereign country? A lot of pissing and moaning, but ultimately, acceptance. Where is the outrage, the intolerance for such blatant theft?

This is all about a banking crises. Central bankers view their customers as central bank private ATMs, taking customer money via service fees, late charges, withdrawal fees for accounts that want to withdraw their own money. How crazy is that? Yet, people accept it.

Now, the uber-wealthy are getting a taste of the "commoner's" medicine. They are finding out that their allocated gold accounts are not as allocated as they thought. Just how not allocated? How about, "The gold ain't there, anymore." We are talking about hundreds of millions of dollars in [un] allocated gold accounts in Switzerland. This is more of a hush- hush situation, but ABN Amro's [default] notice to its account holders that it will no longer deliver gold in settlement anymore, is the tip of the golden iceberg.

That first chart, above, should be seared into your mind. It is a graphic representation of how supply and demand have been distorted. Look at how much money was created, and it may be a worse picture for European central banks and countries. One does not have to "suppose" some of that money is going to be used on the purchase of gold and silver, for it already is. Look at how much money is out there, and then think about how little is the supply of gold and silver to satisfy the growing demand.

Should you be buying gold and silver at any price? If that chart does not provide you with the answer, ask a 5th grader to explain it. Price is not the issue. Availability is! We cannot repeat this enough.

The caveat is this: central bankers hold all the power cards, and they will play them, at all costs, and the costs will be yours to bear, Cyprus being a crystal clear example of what to expect. In all probability, most expectations will be underestimated.

The bankers have fouled up the financial system, and now they want the people to pay for their egregious financial errors. It is not enough that bankers have been stealing homes to which they are not legally entitled to do, but the government fosters it. It is not enough that bankers have received trillions of dollars in bail-out money, to cover their losses. The bankers have been paid several times over, including insurance for losses claimed, even though no actual losses may have existed.

"You must pay your fair share," is the reasoning given for bank accounts stolen, and now talk of a wealth tax to help keep the system afloat. The banks are too big to fail. What?!! Who created the loans and took the risk of loss? The bankers. Let them fail! Let the system fail! People will survive. The only casualties will be the bankers, the "system." It is all about protecting the "system," and it has nothing to do with protecting people. The people are there to be fleeced, and that is what is going on.

If you choose to stay in the banking system, expect to take losses on anything held in a bank. Read that sentence as many times as it takes to have it sink in.

What have the bankers been hell-bent on destroying and discrediting? Gold and silver.

What do Mussolini, Hitler, and Roosevelt have in common? They each confiscated the gold holdings of their citizens, leaving them with no wealth and dependent upon the STATE. It is always about the system. Follow the money.

The New World Order uses central bankers to control all governments. Who runs the governments of all Western-bloc countries? Ex-central bankers. Where is their allegiance? So many questions, almost all having the same answer.

Those in power will destroy you financially, in order for them to survive and keep control. Governments produce nothing. Every dollar spent has to come from the private sector. The parasite is consuming the host. Be prepared.

The Quarterly chart is why we say the true story is all about time. Do not focus on how much demand there is for gold and silver, at any level, be it country or individual. The demand side of the equation is known, and better known by the central bankers than most. It is the supply side that matters, and the supply side is comprised of factions from the NWO, and they will steal whatever you have to survive. Based on the [non] reactions of those who have been stolen from, they are taking it lying down, and the NWO sees it. The enemy has time on its side, and it will be used to wear people down and become disillusioned owing gold and silver. Keep the first chart in mind and stay focused.

The chart comments can be viewed by clicking on the chart, a few time, but this does not work on some sites that carry our article, so we will reproduce the chart comments: [The comments pertain to the paper market.]

A Qrtly chart is rarely looked at by traders. Its effect is controlling over lower time frames. The reason for stating that a gold recovery could take longer than most expect is illustrated here.

The wider range bar from 3rd Qtr 2011, with dashed lines at the high and low, has been decisively broken to the downside by another fairly wide range bar lower. The ease of downward movement is market recognition that sellers are in control. The current Qtr does not end until 30 June, so the location of the close will provide very important information and may provide a better understanding of the time factor for recovery.

A weak close would tell us that it may take a few years for gold to rally even just to the 1800 level. A look at the monthly chart gives an example.

The chart comments aptly describe how the location of the close on a bar lets us know who won between buyers and sellers for that time frame, and it can provide clues as to what to expect in the next bar[s].

Because these charts reflect the paper COMEX prices, which ignore true demand, the conclusions are based upon the distortion of the supply/demand relationship.

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

© 2005-2018 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