Best of the Week
Most Popular
1.Are UK Savings Interest Rates Finally Starting to Rise? Best Cash ISA 2017 - Nadeem_Walayat
2.Inflation Tsunami - Supermarkets, Retail Sector Crisis 2017, EU Suicide and Burning Stocks - Nadeem_Walayat
3.Big Moves in the World Stock Markets - Big Bases - Rambus_Chartology
4.The Next Financial Implosion Is Not Going To Be About The Banks! - Gordon_T_Long
5.Why EU BrExit Single Market Access Hard line is European Union Committing Suicide - Nadeem_Walayat
6.Trump Ramps Up US Military Debt Spending In Preparations for China War - Nadeem_Walayat
7.Watch What Happens When Silver Price Hits $26...  - MoneyMetals
8.Stock Market Fake Risk, Fake Return? Market Crash? - 2nd Mar 17 - Axel_Merk
9.Global Inflation Surges, Central Banks Losing Control and Triggered the Wage Price Spiral? - Nadeem_Walayat
10.Why Gold Will Boom In 2017 - James Burgess
Last 7 days
Silver Mining Stock Fundamentals - 24th Mar 17
A Walk Down the Dark Road of Bad Government - 24th Mar 17
Is Stock Market Flash Crash Postponed Until Monday? - 24th Mar 17
Stock Market Bubble and Gold - 24th Mar 17
Maps Of Past Empires That Can Tell Us About The Future - 24th Mar 17
SNP Independent Scotland's Destiny With Economic Catastrophe, the English Subsidy - IndyRef2 - 24th Mar 17
Stock Market VIX Cycles Set To Explode March/April 2017 – Part II - 23rd Mar 17
Is Now a Good Time to Invest in the US Housing Market? - 23rd Mar 17
The Stock Market Is a Present-Day Version of Pavlov’s Dog - 23rd Mar 17
US Budget - There’s Almost Nothing Left To Cut - 23rd Mar 17
Stock Market Upward Reversal Or Just Quick Rebound Before Another Leg Down? - 23rd Mar 17
Trends to Look Out For as a Modern-day Landlord - 23rd Mar 17
Here’s Why Interstate Health Insurance Won’t Fix Obamacare / Trumpcare - 23rd Mar 17
China’s Biggest Limitations Determine the Future of East Asia - 23rd Mar 17
This is About So Much More Than Trump and Brexit - 23rd Mar 17
Trump Stock Market Rally Over? 20% Bear Drop By Mid Summer? - 22nd Mar 17
Trump Added $3 Trillion in Wealth to Stock Market Participants - 22nd Mar 17
What's Next for the US Dollar, Gold and Stocks? - 22nd Mar 17
MSM Bond Market Full Nonsense Mode as ‘Trump Trades’ Unwind on Schedule - 22nd Mar 17
Peak Gold – Biggest Gold Story Not Being Reported - 22nd Mar 17
Return of Sovereign France, Europe’s Changing Landscape - 22nd Mar 17
Trump Stocks Bull Market Rolling Over? You Were Warned! - 22nd Mar 17
Stock Market Charts That Scream “This Is It” - Here’s What to Do - 22nd Mar 17
Raising the Minimum Wage Is a Jobs Killing Move - 22nd Mar 17
Potential Bottoming Patterns in Gold and Silver Precious Metals Stocks Complex... - 22nd Mar 17
UK Stagflation, Soaring Inflation CPI 2.3%, RPI 3.2%, Real 4.4% - 21st Mar 17
The Demise of the Gold and Silver Bull Run is Greatly Exaggerated - 21st Mar 17
USD Decline Continues, Pull SPX Down as well? - 21st Mar 17
Trump Watershed Budget - 21st Mar 17
How do Client Acquisition Offers Affect Businesses? - 21st Mar 17
Physical Metals Demand Plus Manipulation Suits Will Break Paper Market - 20th Mar 17
Stock Market Uncertainty Following Interest Rate Increase - Will Uptrend Continue? - 20th Mar 17
Precious Metals : Who’s in Charge ? - 20th Mar 17
Stock Market Correction Continues - 20th Mar 17
Why The Status Quo Is Under Increasing Attack By 'Populist People Power' - 20th Mar 17
Why the SNP WILL Destroy Scotland, Exit UK Single Market for EU - IndyRef2 - 19th Mar 17
Crypto Craziness: Bitcoin Plunges on Fork Concerns, Steem Skyrockets and Dash Surges Above $100 - 19th Mar 17
What ‘Ice-Nine’ Means for Your Money - 19th Mar 17
Stock Market 4 Year Cycle - 18th Mar 17
The Only Article You Need to Read to Understand the Trump Phenomenon - 17th Mar 17
Janet Yellen Just Popped the Stock Market Bubble - 17th Mar 17
Financial Crisis, Steve Eisman: Smart, Lucky, Abrasive & Now One Of Them - 17th Mar 17
Gold Cup – Horse Racing’s Greatest Show, Gambling and ‘Going for Gold’ - 17th Mar 17
Trader Education Week - Free Event to Help You Learn to Spot Trading Opportunities - 17th Mar 17
$1.4 Trillion of SPX Notionals Due to Expire - 17th Mar 17
Preserving Order Amid Change in NAFTA, U.S. Sovereignty v. WTO - 17th Mar 17
3 Maps That Explain Why Syria Raqqa Battle Will Drag On - 17th Mar 17

Market Oracle FREE Newsletter

Elliott Wave Trading

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

© 2005-2016 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