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 Prospects From A Russian Point of View

Commodities / Gold and Silver 2014 Apr 27, 2014 - 05:51 PM GMT

By: Michael_Noonan

Commodities

One of the biggest problems for the West, the US in particular, is its increasingly parochial perspective from the narrowest of lenses, fully colored by the elite's use of its main propaganda machine, the Maintstream Media. It will not work for people to expect more from their government, rather, people have to demand and expect more from themselves, for in the end, people will discover all they really had to rely upon was themselves and failed to do so.


All of the information one needs to make more enlightened decisions is out there. One has to change their broken habits of spoon-fed expectations from local news and take a more active role in seeking the truth. In a nation that relies upon a police state, increased militarization, and NSA [STASI] spying on its docile population, one cannot expect to hear truth, only lies, and the Obama administration is certainly delivering them.

Ask yourself, what is your impression of Russia, of Putin? Then, consider the following information about both. Never in the history of the world have [mostly] Western central bankers issued anything but worthless paper currency, backed by nothing, controlled by unelected bureaucrats, and none beholding to nor responsible for citizens of a nation, your neighbors and everyone you may know. This is the world in which most of you live without challenging it. Others, outside of the Western sphere of central banks, with a firm grip on their respective governments, refuse to remain a victim of the West's inflationary degradation via fiat currencies and the rot-from-within they generates.

Who has been the champion prodder of the Ukrainian situation? The United States, led by its teleprompter-reading corporate president, Barack Obama. What has he done? Threatened economic sanctions, provided neo-Nazi thugs to continue to stir unrest, steal, or remove, if you prefer, all the Ukrainian gold in the middle of the night, and drain the country of billions of dollars, transferred to Swiss banks. Are any of these moves in the least bit constructive, let alone justifiable?

Putin's response? Aggression to match aggression? No. Just patience, waiting as events that are doomed to fail play out. While Obama does what he can to stir up a hornets nest in an area of the world the US has no business in interfering, Putin is allowing Obama to take as much political rope as he needs to hang himself. In the meantime, Putin is busy putting together deals with other countries, and its natural gas deal with China in the works will be a game-changer for Russia. All of the deals made and those in process will bring income to Russia as a nation. What kind of income?

More rubles, some yuan, maybe even some gold. Totally absent is the use of the dollar as the disappearing world reserve currency. Putin is taking his job of running a country seriously and responsibly.

Putin spurns Western central banks and continues to strengthen the ruble. He makes deals with other natural resource-rich countries. Obama invades oil-rich countries. While Obama pushes for war on the other side of the world with Syria and Ukraine, Putin is busy making deals on the other side of his world with Obama's ignored neighbors, Mexico and Latin America. While Obama allows the Fed and Wall Street to continually suppress and disparage the gold market, Putin is building Russia's gold reserves. No fiat ruble over there.

What has Obama done to help strengthen the US financially? Nil, and to the contrary, he has increased government spending, with no means of ever repaying it, and he has worsened the plight of millions and millions of Americans through his enrich-insurance- companies scheme at the expense of leaving people without affordable insurance coverage.

Most Americans have never heard of Russia's Gazprom, yet it dwarfs Exxon and Mobil in size. In anticipation of Western sanctions, Gazprom secured natural gas deals with China. If Gazprom never sold another energy unit of natural gas to the West, its bottom line will continue thrive with its natural gas sold to the East. Further, Gazprom will now only sell their product using rubles, yuan, and gold, no petrodollars allowed.

The Russian banking system has responded to the West's petty and of no-effect sanctions by raising a one-finger salute to the West. Russian banks have stopped using the dollar and have adapted total reliance upon its own ruble, intent on having the ruble become a part of any new global currency. US banks continue to entrap citizens with debt-forever fiat. Russia has the second largest gold reserve in the world. US is the highest debtor nation in the entire world. The US has always had a fondness for being number 1 in everything.

The fact that Russia has rejected the dollar in every way, coupled with another fact that it will only transact its gas and oil trade in the ruble will have an impact on the US and the West more than any sanctions Obama can ever hope to [under]achieve. As a consequence of pushing Russia away from the [totally failed] Western banking system, the US stands to lose trillions of fiat $ in return. It is not just Russia. All of the other BRICS nations are following suit. The US and the central banking system is committing seppuku, [hari kari], financial [self-imposed] disembowelment.

Still think of Russia as an "evil empire?" Here is a quote from one of Russia's members of Parliament on the US and its fiat:

"The dollar is evil. It is a dirty green paper stained with blood of hundreds of thousands of civilian citizens of Japan, Serbia, Afghanistan, Iraq, Syria, Libya, Korea, and Vietnam. Our national industrial giants will not suffer any losses if they choose to make contracts in Rubles or other alternative currencies. Russia will benefit from that. We should act paradoxically when we deal with the West. We will sell Rubles to consumers of our oil & gas, and later we will exchange Rubles for Gold. If they do not like this, let them not do this and freeze to death. Before they adjust, and this will take them three of four years, we will collect tremendous quantities of Gold. Russian companies will at last become nationally oriented and stop crediting the economy of the United States that is openly hostile to Russia." Source: Izvestia newspaper

What of he US ally Germany? Guess where Germany will turn when push comes to shove? East! It has vastly important financial ties with Russia. Germany's ties to the US? Mostly fiat and highly objectionable NSA tentacles covering the country.

Israel. Surely the staunchest US ally? Well, it turns out that the US worsening of events in Ukraine are a threat to Israeli security. Israel has its own floating Tamar natural gas platform, and it has made a deal with Gazprom to export the liquified natural gas.

How much of any of this has anyone read or heard about from government-controlled mainstream media? Not a peep, not a sentence. The elites want US citizens to remain dumbed down, and US citizens are complying in utter ignorance and steadfast refusal to consider any alternative news sources. Reliance upon the total control over the corporate and bankrupt federal government's newspeak is the elite's goal.

At the outset, we said people need to expect more from themselves and take more responsibility for their own lives. Reliance upon any government is a trap from which there is no escape.

We have not even covered all that can be covered re Russia and Putin, or Obama and the federal government, for that matter. We have not even touched China, India, the growing BRICS nations as a power unto themselves, totally outside of and separate from the self- toppling United Sates.

The acronym BRICS brings to mind the story of the Three Little Pigs, making houses of straw and twigs that failed, [fiat], with the safest being the one built of brick. The BRICS are using a lot of gold in building their financial ties together.

None of this addresses timing, but the message is clear: financial integrity and strength is relying upon gold, in some large degree, as a standard, at least indirectly. The message should be the same for us all who endeavor to withstand the inevitable fall-out from fiat currencies destroying the Western financial system. The East, parts of the Middle East, and even Central and South American countries are accumulating gold. There is no concern about gold going lower or even not going higher, for now. The end-game is not the short-term price, it is for where gold will seek its natural price level once freed from Western central bankers and to not be caught holding nothing but value-lost paper.

On a side note, the elites are not stupid. It is likely that they may even be orchestrating the demise of the Federal Reserve Note "dollar." The direction may have been intended to replace the "dollar" with another fiat issue, like an SDR, [Special Drawing Rights], to be issued by an all-controlling, non-elected or representative government, like the BIS, [Bank for International Settlements], or some similar elite organization. What was not anticipated, during all the decades of planning, was the rise of the East and the use of gold as a measure of currency control.

Last week could have been an important anchor for a turning point in gold and silver. The comments on the weekly chart cover a lot of ground. What can be added are the observations labeled 4 and 5. Both are directed at the level of volume. The area marked 4 shows increased volume as price rallied. On the current correction, volume has dropped off. This tells us that the selling pressure is not there, as it used to be.

The gold price is also respecting, albeit loosely, the half-way correction area between the recent swing low and swing high. In somewhat of a down market condition, that is a good showing. Gold's failure to decline to the lower channel line is an indication of strength.



The daily gold chart is confirming observation made on the weekly, but with more detail. What was not covered in the chart comments was the thin line at the half-way measure of the down sloping channel. Whenever price can hold the half-way point of anything, it is taken as a relative measure of strength



Silver is a test of one's patience. All purchases made at current, even slightly higher, prices will be viewed as gifts and wise moves sometime in the future, be it later this year or into 2015/2016. When silver finally does rally away from its [very constructive] support zone, purchases made at any higher price in the past few years will look like bargains.

The way the charts are setting up, even purchases in the paper futures market now have a diminished downside. What cannot be known is when a move to the upside will make any such buys worthwhile from a profit perspective.



That high volume spike should loom as important, moving forward. As with gold, it may be an anchor for establishing the low point for silver, too. Similar to gold, silver has kept just above the half-way area in its down channel. In this last correction, silver did not even come close to reaching the lower channel live, as it did in late March. Last week's close has it bumping up against the upper channel line very soon after the last challenge just two weeks ago. This is a positive development within a negative down trend.

On an ending note, last week, mention was made of Gann and the Cardinal Grand Cross, an astrological significant time frame. It all ends with a solar eclipse on the 29th. [See Gann, Cardinal Grand Cross, A Mousetrap And Wrong Expectations, if you did not read it.] It is just interesting to see how both gold and silver can be potentially bottoming at the same time. From our unwavering point of view, price and volume remain the most reliable guides and source of market information.


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.

© 2014 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