Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
Russia Buys 300,000 Ounces Of Gold In March – Nears 2,000 Tons In Gold Reserves - 24th Apr 18
Stock Market Study Shows Why You Shouldn’t “Sell in May and Go Away” - 24th Apr 18
CRYPTOCURRENCY MASTERCLASS #CRY90 - 24th Apr 18
UKGC Set to Make Online Gambling Industry More Risk-Free - 24th Apr 18
Chaos Capitalists Short Countries - How Chanos Got China Wrong - 24th Apr
Artificial Intelligence Defines the Political News Narrative - 24th Apr 18
Stock Market "Oops, They Did It Again" - 24th Apr 18
Fox in the Henhouse: Why Interest Rates Are Rising - 23rd Apr 18
Stocks and Bonds, This is Not a Market - 23rd Apr 18
Happy Anniversary Silver Investors! - 23rd Apr 18
The Hottest Commodity Play In 2018 - 23rd Apr 18
Stock Market Correction Turns Consolidation - 23rd Apr 18
Silver Squeeze, Gold Fails & GDX Breadth - 23rd Apr 18
US Economy Is Cooked, the Growth Cycle has Peaked - 23rd Apr 18
Inflation, With a Shelf Life - 23rd Apr 18 - Gary_Tanashian
Stock Market Predictive Modeling Is Calling For A Continued Rally - 22nd Apr 18
SWEATCOIN - Get PAID to WALK! Incentive to Burn Fat and Lose Weight - Review - 22nd Apr 18
Sheffield Local Elections 2018 Forecast Results - 22nd Apr 18
How Long Does it take for a 10%+ Stock Market Correction to Make New Highs - 21st Apr 18
Sheffield Ruling Labour Party Could Lose 10 Council Seats at May Local Elections - 21st Apr 18
Crude Oil Price Trend Forecast - Saudi Arabia $80 ARAMCO Stock IPO Target - 21st Apr 18
Gold Price Nearing Bull Market Breakout, Stocks to Follow - 20th Apr 18
What’s Bitcoin Really Worth? - 20th Apr 18
Stock Market May "Let Go" - 20th Apr 18
Overwhelming Evidence Against Near Stock Market Grand Supercycle Top - 20th Apr 18
Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - 20th Apr 18
The Incredible Silver Trade – What You Need to Know - 20th Apr 18
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

Gold And Silver – Cognitive Disconnect Between Physical And Paper

Commodities / Gold and Silver 2013 Nov 09, 2013 - 12:56 PM GMT

By: Michael_Noonan

Commodities

When one understands the widely pervasive but narrowly understood phenomenon of cognitive dissonance that permeates most of the Western world, it is not so difficult to put into context the disparity between demand for physical gold and silver and supply for the faux paper market. There is a growing sense for many that everything in the financial world is out of line, and way out of line for many others.


Cognitive dissonance: an inner need to maintain harmony in one's attitudes and beliefs while avoiding disharmony, [dissonance]. When a conflict arises that produces a sense of inner discomfort about one's beliefs or attitudes over something that promotes an alteration of those same beliefs and attitudes, there is a driving need to restore the inner balance or calm. In other words, it is easier to go along in order to get along.

This inability to reconcile gross inequities brought about by the world's central bankers; outright theft from events like MF Global, "bail-ins" for bank account holders being held [hostage] responsible for the failed financial activities of the bankers themselves, which is just another form of theft; and the most insidious form of theft, confiscation of wealth via fiat-issued currencies, creating inflation and destroying capital.

Despite this recent and brazen form of theft from people's bank accounts, the money on deposit in banks continues to rise, begging to be stolen by the bankers, [and they will steal it, count on it]. It would seem these kinds of situations would cause people to close out brokerage accounts and bank accounts, but it is not happening.

Detroit's pensioners may be lucky to receive 16 cents for the dollar of what they expected to collect, and every state is grossly underfunded for public pensions. When pensioners get hit across the country, it will be viewed like a Black Swan event: "Who could have seen it coming?" Thank the politicians who keep raising the debt ceiling, allowing government to shut down, and then raise the [nonexistent] "ceiling" and resume spending with abandon.

There is the blatant manipulation of the gold and silver markets themselves, with so many PMs experts calling for higher prices that refuse to show up, for a reason. The cognitive dissonance aspect to gold and silver and their disconnect between demand for the physical and supply for the paper, with paper prices prevailing, is the refusal for those outside the banking system, [governments being a puppet subset of the central bankers], to recognize central banking for the criminal enterprise that it is.

How can the insatiable appetite for the physical metal be subservient to the corrupt LBMA and COMEX? There is a war going on, one that has already been lost by the West to a yet to be declared victorious East/BRICS. The Western central banking system is choking on the fiat of its own making, force-feeding their same fiat down the debt-ridden throats of lesser countries like Cyprus, Greece, Ireland, et al.

Then there has been the theft of gold from Libya, once Gaddafi was disposed of, and from Somalia, to help satisfy Germany's demand for the return of its gold. There are reports of allocated gold accounts that no longer have the gold, stolen from the account holders who fear going public for a variety of reasons.

The Obama regime, led by a Nobel Peace Prize recipient, the leading advocate for war for any [false] reason, was stopped cold by Russia, and in the process, the US was abandoned by its partner in crime, UK. This happened, most likely, because Russia reminded the UK from where its source for winter heating fuel comes.

The West is in a relentless state of decline matched by the increasing rise in status and power of the East/BRICS nations, with gold being the ultimate trump card. China is by far the largest buyer of gold on the market. Do you think it has any interest in seeing the price of gold go to $2,000, or higher? As a huge buyer, China has a vested interest in seeing the price of gold where it is, not caring if it continues lower, which is even better.

If gold were to go higher, it exposes the largest Ponzi scheme ever, conducted by the world's central bankers who are left with empty gold vaults, and who would have to accept the collapse of Western fiat currencies. Evidence of this comes from the sale of J P Morgan's Morgan Guarantee Company building, housing the world's largest gold vault, able to withstand an earthquake, for a relatively cheap $725 million. The buyer? China. The reality and symbolism are rich in irony.

All the news announcements of which country has increased their gold buying, how many tonnes of gold does China actually own, record sales for gold and silver coins, empty or nearly empty COMEX gold holdings, all validate why the price of gold and silver will eventually go much higher. However, it has little to no bearing on the price of gold, and no impact on Western central bankers and all the unelected organizations that rule the Western financial world and governments, [Basel, BIS, IMF].

This is a behind the scenes change of players, literally, on the world's stage, and the New World Order elite are doing what they can to fight off the inevitable, steal as much as possible before the end arrives, and jockey for position, if possible, even as a bit player lording over the ashes of another fallen empire, as it were. It will be RIP USA. The American people do not see this coming.

Until that day of reckoning, there are forces not fully understood that still exert influence and control on the gold/silver market. For how much longer can it last? It is unlikely that it will be measured in months, a lower probability factor, but more likely still in years, fewer than more, but it is anyone's guess. This Ponzi scheme will go on, and on, because it is the largest holders in the Western world who maintain control, and they are unopposed in their control.

All the bullish news that has been reported, month after month, for the past few years has done nothing to change the recent down trend. None of the bullish news that will come out next week or next month will have any effect, either. People are looking at the wrong measures for a turnaround.

The best advice always has been and always will be, "Follow the money." The Western "money" is imaginary, but few are willing to see the financial emperor "is wearing no clothes." Cognitive dissonance works in favor of the money changers, and they rely on it. Those who choose to hold the fiat will end up with the value of all fiats, ultimately.

Those who choose to follow the true money will continue to buy gold and silver. We each are captains of our own ship. Those in control of the helm are the buyers and holders of real money. Everyone else is sailing on a ship of fools.

It may be fool-hardy to look at charts of an increasingly minor factor on the gold/silver landscape, but we have no way of charting what is unseen. If the arrival of the end game creates an overnight several hundred-dollar gap up in gold, those who own and continue to buy the physical will be immediate beneficiaries, rewarded for their patience and willingness to not get caught in the eventual maelstrom of reality coming to the fore.

It may also be possible to be positioned in futures for a turn in market trend before any such upheaval occurs. No one knows how any of this will play out, so for now, best to play whatever opportunity may be available from reading current market activity.

The trend is down, and price continues to show bouts of strong selling. That said, the last two weeks had some sizeable daily sell-offs, but the net effect has been minimal against the gains of the two-week preceding. It takes time for any market to base, in preparation for a sustained reversal of trend, and gold may be in that process.

Price is holding at a band of support. What is absent is ongoing buying that can lift price above the swing high at "A."



There was a sharp increase in the level of volume for the last two days on the chart. The closes are on the lower end of the range, and this says sellers are in control. What sellers need now is continuation lower to take advantage of what appears to be a weakened market.

How price reacts next week will provide an important clue.



Silver looks relatively more promising because the decline is holding better than gold's.



The character of the silver daily is better than that of daily gold. The decline from 23 was fast, but the extent of the downside has been somewhat muted, by comparison. There is no reason to buy silver, or gold futures, at current levels, for additional downside cannot be ruled out.


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

6 Critical Money Making Rules