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Trading Lessons

Gold And Silver – When Precious Metals Bottom Is Irrelevant To Your Financial Health

Commodities / Gold and Silver 2013 Jul 20, 2013 - 11:15 AM GMT

By: Michael_Noonan

Commodities

As ardent as Precious Metals, [PMs], buyers are, a good many of them do not comprehend their importance. Everyone agrees they are resoundingly better than any fiat currency, as history has amply proven. However, few consider the why PMs are so anathema for all central bankers.

There was a time in this country when gold and silver were the coin of the realm. Actually, they still are! The Coinage Act of 1792 has never been repealed, and that means, by law, gold and silver are, [read section 20], the current money of account of the United States. There is a very potent message within that Act, and like we said last week, Knowledge is not of value, using it is.


Here is what not enough people know, even in the PM community: The qualities within a gold coin are title, rights, and interest. When gold was used to purchase anything, all title, rights, and interest transferred from the gold coin to whatever was purchased. It was paid in full.

By contrast, thanks to the Rothschilds, the genesis for the entire Western world’s financial system, central bankers have replaced ALL title, rights, and interest in whatever you buy with commercial debt instruments, liens. All Federal Reserve Notes are evidences of debt. They are not “dollars,” even though the word is printed on them, and the Federal Reserve has admitted as much. Federal Reserve Notes, [FRNs] are commercial debt instruments, and they are issued by the privately owned corporation, The Federal Reserve.

Debt is not money. It never was and never will be. The lie has been sold to the public, and the public has bought it, in its entirety. As an aside, if you have not yet looked up cognitive dissonance, this would be a good time. What is a FRN? It is not Federal; it is issued by a private corporation. Look up Federal Reserve in any government blue pages in the phone book. It ain’t there. You will find it closer to Federal Express in the white pages.

There are no reserves backing a FRN. It is the same as monopoly money. Each have the same intrinsic value. One is believed [cognitive dissonance, again] to be of value, the other is known as play money. A few know the truth and see the two as equal.

It is not a note. There is no promise to pay anyone anything at anytime. Any questions?

Debt is a lien, so whenever you use FRNs to buy anything, whatever you purchase carries with it a lien. This is why when you purchase a house or a car, the government keeps real title, and all you get is an equitable title, usage, like a rental because you pay annual rent back to the government. Whenever you sell your house or car, the lien transfers with it.

No matter what you “buy,” a house, a car, furniture, equipment, etc, the lien of 100% goes along with it, because you used a FRN, and all title, rights, and interest fully belongs to the creditor, the Federal Reserve. Also, for the privilege of using a FRN debt instrument, you get to pay a tax on them. [Enter IRS]

With gold and silver, you paid in full for whatever you bought, and you received all rights, title, and interest. The government has no claim against you. You do not need the government because you are dealing with coin of the realm that gives you absolute right, title, and interest. Can you better understand why Socialist Franklin Delano Roosevelt ran the scam he did for the New World Order to have all “persons” turn in their gold, an order issued by Executive Order. Few knew that Executive Orders only applied to those within the employ of the federal government! Of course, the federal government did nothing to dissuade those who falsely believed otherwise, and still do.

Why are gold and silver so important to your financial health, and why are they so fiercely opposed by governments? Three words: Rights, Title, Interest. By stripping people of their most accessible form of wealth, they became dependent upon the government. How many people are dependent upon Social Security, [another scam], Medicare, and now the largest growing segment, Food Stamps?

If you have wealth, and gold and silver are forms of wealth, [no matter how anyone would say otherwise], you do not need fiat; you do not need the government. However, the government needs you! By taking away your wealth and leaving you only with debt, you are caught up in their web.

The above explanation has been the primary reason why the New World Order has taken over each Western country’s currency, replacing all gold and silver backed lawful currency with [worthless] paper fiat. As Chuck Colson, then Special Counsel to Nixon back in the 1970s, was quoted as saying, “When you’ve got them by the [financial] balls, their hearts and minds will follow.” Guess where the New World Order has you?

Think about this when you next use your credit card, or fiat FRNs. Prior to the 1930s, Americans used coin of the realm, and United States Notes, [actually issued by the US] that were backed by gold and silver, with a promise to pay metal specie if one wanted to have their lawful money so redeemed. Now, thanks to fiat, the United States has slipped into Third World status, just not yet recognized by the masses. It is going to continue to get worse.

The above issue has now been compounded by the growing concern that central bankers have little to no gold left, even though they have been leasing, releasing, and scamming everyone with their previously unquestioned practices. There are numerous “stories” relating this latest ongoing scam, so we need not dwell any further on it.

There are two situations going on. Some express it as “the price of gold, or the gold price.” We do not know what that means? What is the price of gold, if not the gold price? Having some clever form of expression will never resolve the problem.

One more time. Buying and holding physical gold and silver gives you rights, title, and all interest, aka full ownership. Acquiring them during theses tumultuous times is your best form of wealth protection moving into an increasingly uncertain future. If you want to attach physical ownership to the paper prices that are fully controlled by central bankers, you can, but it misses the point for your future financial well-being.

If you choose to play the lien game and deal in fiat, with a lien attached to everything you have, that, too, is a choice with a guaranteed certainty of uncertainty for the future. There is one thing on which almost all can agree, the central bankers are not about to give up their uber-wealthy fiat scam, and if they cannot meet their obligations to make delivery on physical PMs, they will [forcefully] buy people off and keep their game alive.

How long can they keep their game going? Longer than most expect. For that view of artificial reality, we turn to the charts.

There is no evidence of a change in trend. That means gold can still go lower, possibly move sideways, and have occasional rallies, a natural feature of all bear markets. Know that it takes time to turn a trend around. If you keep a focus on what the intrinsic value of gold and silver offer, [rights, title, interest], you may feel less pressure to have price turn around to the upside and more secure in your holdings. At current low prices, opportunity is so ripe.

Mention was made that rallies are a normal feature of any bear market, and it is possible gold may break through the immediate resistance area of 1,300, as we show on the daily chart. If you look at late June, when price declined under 1,300, there was a brief two-day rally that failed.

Compare those two trading days then with the last seven now. Price is not reacting away from that resistance. We often state that the how of a price reaction, or lack of one, is the market’s way of telling us what is likely to happen. It appears that buyers are absorbing sellers defending 1,300, and it may give way, next week.

The two strongest volume days in July did not result in any downside follow through, and that, in itself, is a message. You will read more and more articles touting how gold and silver have bottomed. They have not, at least according to price behavior as determined by actual buyers and sellers in the market.

One has to suspend reliance on the natural order of supply and demand in the PMs, for now, until the unnatural forces of faux supply, pretend non-existent interest of demand by central bankers plays itself out.

We can say with certainty that there has been greater buying than selling at the lows in both metals, and that shows clearly in the silver weekly chart. We do not know how much is simply short-covering, still a positive sign, and how much may be actual new longs being accumulated by smart money.

The daily silver is similar to but not as strong as gold. Still, evidence is growing to expect some sort of rally. Until we see the how and the extent of any rally, there can be no change in the assessment that the trend remains down.

We have been urging our readers each and every week, buy physical gold, physical silver, price is not the issue. Having it is! Perhaps now you better understand why. In addition to buying either or both, we also continue to advocate holding it personally. If you do not hold it, you do not own it. Your financial health depends on it.

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.

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