Best of the Week
Most Popular
1.Election Forecast 2015 - Opinion Polls Trending Towards Conservative Outright Win - Nadeem_Walayat
2.UK Solar Eclipse - End Time Sign, Judgement Day, Doomsday! - Nadeem_Walayat
3.Gold And Silver - When Will Precious Metals Rally? Not In 2015 - Michael_Noonan
4.Preparing for the Next Stocks Bear Market - Forecast 2015-2016 - Gary_Savage
5.Is a Stock Market Crash Imminent? - David Eifrig
6.Gold Price Slumps as US Dollar Soars, What's Next? - Nadeem_Walayat
7.US Dollar Forex Pairs and Gold Chartology - Rambus_Chartology
8.Election Forecast 2015: The Day Labour Lost the General Election - Nadeem_Walayat
9.The ECB Should End QE Next Month - EconMatters
10.Silver Price Poised to Surge - Zeal_LLC
Last 5 days
Deflation Watch: Key U.S. Economic Measures Turn South - 27th Mar 15
The Hard-Earned Truth About Recreational Real Estate - 27th Mar 15
Bitcoin Price Still in Important Territory - 27th Mar 15
Stocks Bear Market Conditions - Index Market Range Warning - 27th Mar 15
BEA Leaves Q4 2014 U.S. GDP Growth Essentially Unchanged at 2.22% - 27th Mar 15
Brazil Economy Victim of Vulgar Keynesianism - 27th Mar 15
Gold to Fuel Silver Price Upleg - 27th Mar 15
Gold and Silver Stocks Will Rise Again! - 27th Mar 15
Risk of ‘World War’ between NATO and Russia on Ukraine as Yemen Bombed - 27th Mar 15
FOMC Minutes Turned The Gold Tide - 27th Mar 15
Sheffield Hallam Election Battle 2015 - Lib Dems Go to War Whilst Labour Sleeps - 27th Mar 15
Gold Effect On Mining & Shale Wasteland - 27th Mar 15
How Stock Investors Should Play the 2016 Presidential Race - 26th Mar 15
MidEast Energy Alert: Why the Crisis in Yemen Could Get Ugly Very Fast - 26th Mar 15
Stock Market Downward Spiral of Dumbness - 26th Mar 15
The Monetary Approach Reigns Supreme - 26th Mar 15
Stock Market Large Gap Down, Despite the Algos' Push Back - 26th Mar 15
Crude Oil Surges, Gold price Spikes as Middle East Tensions Escalate - 26th Mar 15
The U.S. Housing Market Recovery Is Fabricated Optimism - 26th Mar 15
Why Yemen Is The Next Saudi-Iranian Battleground - 26th Mar 15
The Crude Oil Price Crash and China Economic Slow Down - 26th Mar 15
Global Financial Markets Are More Distorted Than Ever Before - 26th Mar 15
One More Stock Market Rally and Then a Huge Drop Expected - 26th Mar 15
Danger Will Robinson - Stock Market Crash Warning - 25th Mar 15
Learn the Basics of Corrective Elliott Waves - 25th Mar 15
Why CNBC Is Hazardous to Your Financial Health! - 25th Mar 15
Will Your Retirement Accounts Survive The Coming Tax Code "Revolution"? - 25th Mar 15
US Dollar - Americas Phoenix - 25th Mar 15
California’s Epic Drought: Only One Year of Water Left! - 25th Mar 15
What’s Wrong With Silver? - 25th Mar 15
SPX Futures Appear Weak. WTIC and Gold May Be at Max Retracement - 25th Mar 15
We’re at the Dawn of a “New Energy Age” - 25th Mar 15
A Very Weak U.S. Economic Recovery - 25th Mar 15
Zero UK CPI Inflation Rate Prompts Deflation Danger Propaganda For Fresh Money Printing - 25th Mar 15
Stock Market NYSE Hi-Lo Index Aggressive Sell Signal - 24th Mar 15
Palladium Commodity Price Forecast - 24th Mar 15
Bitcoin Price Gearing Up for a Fall - 24th Mar 15
Safety Deposit Boxes In UK Being Closed By ‏HSBC – Not Closing Gold Vaults - 24th Mar 15
Japan Short Term Gains And Long Term Disaster - 24th Mar 15
China's Fragile Evolution - 24th Mar 15
David Cameron Announces Resignation Even Before Being Re-elected, Handing Labour 6 Seats - 24th Mar 15
City of London's Ownership of American Colonies - 24th Mar 15
Stock Market Reversal May Have Begun - 24th Mar 15
Casey Gathers Top Gold Experts to Share Secrets for Making Money in Any Market - 24th Mar 15
Thoughts on The Current Crude Oil Market - 24th Mar 15
U.S. Economy Still on Life Support - What Your Governments Hiding From You... - 24th Mar 15
UK Election Forecast 2015 - Budget Bribes Fail, SNP Insurgency Catastrophe - Video - 24th Mar 15
Is Stock Market Minor Top Taking Hold? - 23rd Mar 15
Greece and EU Running Out of Time as Bank Runs Intensify - 23rd Mar 15
Stock Market Slightly Negative Expectations Following Last Week's Rally - 23rd Mar 15
This Rising Interest Rates Play Could Make You a Quick 55% - 23rd Mar 15
Platinum Commodity Price False Break Low - 23rd Mar 15
The Real Reason The American Dream is Unraveling - 23rd Mar 15
Election Forecast 2015 - Budget Bribes Fail to Impress Voters, Tory's Lose Seats in Opinion Polls - 23rd Mar 15
Silver Price Reliance During U.S. Dollar Rally - 23rd Mar 15
Gold Price Outlook Dramatic Improvement Following US Dollar Topping Action - 23rd Mar 15
Wall Street Doesn't Want You to Do This - 22nd Mar 15
The "Natural Interest Rate" Is Always Positive and Cannot Be Negative - 22nd Mar 15
Exploring The Gold Market: The Fed, The Charts. The COTS and GLD - 22nd Mar 15
Stocks Bull Market Continues - 22nd Mar 15
Gold And Silver - China's AIIB Spells U.s. Dollar Demise, Not Clear For Precious Metals - 22nd Mar 15
Cocoa Commodity Price Technical Outlook - 21st Mar 15
Yield Curve, Futures, Suggest No U.S. Interest Rate Hike Until December - 21st Mar 15
Three Iconic Stocks Are Poised for a Dive - 21st Mar 15
We're All Hedge Funds Now! - 21st Mar 15
Why Stock Market Seasonality May Be Critical in 2015 - 20th Mar 15
Yellen's Tiger Riding Dilemma Keeps Interest Rates Near Zero - 20th Mar 15
FOMC is boxed in, Gold and Silver - 20th Mar 15
Silver Price Poised to Surge - 20th Mar 15
Why Aren’t These Investors Worried About The Gold Price? - 20th Mar 15
Gold Price Downside $850/oz; Upside Jump to $2,000/oz on ‘Grexit’ - 20th Mar 15
Cheap Paper Money - Precious Metals Technical Outlook - 20th Mar 15
Best Cash ISA vs Budget 2015 Scrapping Tax on Savings Interest on First £1,000 - 20th Mar 15
GDXJ / Gold Ratio - 20th Mar 15
What the “Yellen Effect” Ultimately Means for Crude Oil - 20th Mar 15
Sharp Fall In USD Index And Its Implications - 20th Mar 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

US Economy Still on Life Support

Gold And Silver - From Now On All that Matters Is That You Own Both

Commodities / Gold and Silver 2014 Mar 01, 2014 - 11:35 AM GMT

By: Michael_Noonan

Commodities

Circumstances are at such a point that one no longer needs a justifiable reason for being long physical gold and/or silver. Does it matter that the 50 day moving average is going to cross the 200 day moving average, now being bandied about as though there were a degree of magic associated with the event? Does it matter any more that China remains a record buyer of physical gold for over a year? Did it ever matter that coin sales to the public have been setting records for well over a year?


Will it matter to know that the manipulation of gold has now been acknowledged by the totally incompetent main stream media? Is it not a foregone conclusion that nothing will come of any "investigation" by the bought-and-paid-for agencies responsible for ensuring such "events" do not happen? Does it matter that the "suicides" of several bankers over the past few weeks have all been immediately determined as "non-suspicious" by police on the scene?

The answer to all the above should be an obvious No!

What does matter is that the elite's fiat banking Ponzi scheme has been producing more and more digital "currency," which does not exist except as an IOU to the recipient countries that are being bailed out. "I-will-cut-the-deficit-in-half" Obama has allowed the privately owned, [by the elites], Federal Reserve to run up the US deficit to over 17 trillion fiat Federal Reserve Notes.

[You can continue to play the Fool's game and call them "dollars," but in reality, in fact, and in law they are not. However, the elite's Ponzi scheme of deception has people everywhere believing the Fed's fiat currency is a "dollar" and somehow has "value."]

fiat\Fi"at\, [as in money], noun: irredeemable paper currency, not resting on a specie basis, but deriving its purchasing power from the declaratory fiat of the government issuing it. [1913 Webster dictionary]

The definition of fiat has been known for quite some time, [certainly before 1913], yet it does not seem to bother US citizens that the purported "money" that they think they hold is actually a dollar, a deception purposefully perpetrated by the government, in collusion with the elite's central banking system. [Europeans have the fiat Euro].

Would it bother you to find out that your spouse of so many years, or someone you trusted, like a best friend, has been deceiving you into believing a falsehood? falsehood: an untrue representation or assertion]. Once you discovered you had been duped, for decades, would you ever be able to trust or believe in that individual again?

The Federal Reserve, along with the corporate federal government, have done just that. If a Federal Reserve Note, [FRN], is not a dollar, then what is it? It is a commercial debt instrument issued by the Federal Reserve. Here is another revelation for those who have chosen not to question anything: Debt, by its very definition: an obligation to pay, cannot be money!

Add to that is the other pertinent fact that the fiat FRN is irredeemable. It has no, zero intrinsic value. What ever value you may think a FRN has is purely imagined.

Then there is this not so little interesting fact: The Federal Reserve creates FRNs at the cost of paper and ink, then loans its irredeemable fiat paper to the United States Treasury, for which the US taxpayer must pay back, with interest, to the Fed. Guess what the Fed will not accept as a form of repayment? The very same Federal Reserve Notes it issues. The Fed, as a part of the elite's corrupt scheme, demands gold and silver as payment in return for the created-out-of-thin-air "money."

Fed to the bankrupt US government: "You do not have any more gold and silver to repay your debt to us? We will take over the U S Forestry Department as payment. We now own it, and it will now be known as the US Forestry Service. The public will not be any wiser to the switch." "Now we will take over, as in own, the US Post Office. It will be called the US Postal Service. The public will not notice the switch in name." Etc, etc, etc.

The elites own the US through the passage of the Federal Reserve Act of 1913, passed on 23 December, two days before Christmas, when any opposing senators would be home on vacation and unable to cast any vote against the Act. One of the most important Acts passed in this country was done at a time when senate custom was not to pass anything from early December through early January, while most traveled home for the holidays. Travel, in those days, was by horse and carriage and train, primarily, to put this fast one into context.

The elites never take a holiday. For a reason.

When one begins to comprehend the enormity of the theft of all the assets of the US by the elites, for it defies the imagination of most and cognitive dissonance operates to prevent people from believing the truth when presented, for the Lie has been so well sold by the elites through the government and the elite-controlled media. When the enormity of what has transpired in a well-conceived takeover scheme, spanning decades so as to not arouse suspicion, so many things taken for granted are seen in an entirely different light.

Going back to the fourth paragraph, what does matter is the never-ending creation of new debt, now over $17 trillion [FRN], as mentioned, because every fiat system throughout history as failed, and the American people are going to be in for the financial shock of their lives when the FRN "dollar," as it is known, gets devalued in the not too distant future. By how much is unknown, but anywhere from 30% to 70% is likely, if not all at once, then in a few stages.

Those who already own gold and silver will be protected, to a larger degree than otherwise, against the certain-to-come devaluation[s]. We have been advocating the buy and hold strategy for over a year, specifically for physical gold and silver and personally holding the PMs, as well. One of the provisions of the Patriot Act, [such an appealing sounding name, is it not?]...forced through at the direction of the elites to gain further control over unaware citizens, allows the government to raid anyone's safe deposit box that may hold either gold or silver. Still trust the banks?

Some own gold and silver from much higher prices. That is okay and not a cause for concern. When the fiat Ponzi scheme fails, the unnaturally suppressed prices for both PMs will make $50 silver and $1800 gold look like an incredible bargain.

Consider this, a few days ago, the Chinese yuan took the largest drop in five years against the fiat "dollar." China is now recognized as the largest holder of gold. The United States has become the largest debtor nation in history. You have to ask yourself, how is it that the nation that owns the largest gold supply can have its currency decline against the nation that has the largest debt? It defies logic. The games that go on between countries is way beyond us as individuals, and in reality, people are just pawns in the geopolitical scheme of things.

The takeaway from all of this is the more than ever pressing need to keep on buying as much gold and silver as one can afford. Forget price. Ownership is all that matters. No one has a timetable for when things will fall apart, but the signs continue to grow and favor disintegration of the fiat FRN.

The entire world-wide banking system is corrupt and run by corrupt people whose only objective is to steal as much of your money as they can. We are of the mind that the western banking Ponzi scheme can go on for longer than most expect. It could take one or even two to three years longer before the fiat system unravels. Things could also go awry in the next several months. Regardless of when, the handwriting is on the wall for those who pay attention.

Despite the growing acknowledgement that the COMEX and LBMA are just about out of gold, there is nothing glaring from the charts that flashes a dire warning sign. At some point, those in the know and in control will show their hand, somehow, in the paper market. There are changes underway, but all within what would be considered as normal in any market, even though the PM market, marked by excessive manipulation, is far from being like any other market.

The most important aspect of the weekly gold chart is the COB, [Change Of Behavior], for what should have been strong selling was actually buyers overcoming sellers, and there was no further downside. Price has not looked back, since.

Gold is near an area of resistance. What remains to be seen is how any correction develops. For that, the daily shows more detail.



A trend change, for us, occurs when there is a higher low that is followed by a higher high, and daily gold meets that criteria. Gold held the overbought upper channel line for several trading days, certainly not indicative of a weak market.

For as much as we see gold likely to not trade substantially higher, soon, that is a bias which must be ignored, for two reasons. 1] Anything can happen, and 2] having such a bias tends to preclude seeing activity contrary to that bias.

Friday's intra day activity appeared bullish, early on, and we recommended a light position to the long side. It is more difficult to position in a market that may be turning its trend, but one has to follow a consistent approach and make adjustments as needed.



We are not sure how accurate the volume is for last week, but if it is as high as shown, it created a ref flag against the downside. It is something to watch for next week.



Instead of declining further, after Wednesday's large decline on sharply increased volume, price held in a sideways pattern. There is potential support in silver for the first time in a long time. Depending on where the next correction stops, it is possible for bullish spacing to develop. If so, it will add to what appears to be a changing market.


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

© 2005-2015 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

Free Report - Financial Markets 2014