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Why 95% of Traders Fail

What You Know for Certain - Huge Demand for Gold And Silver

Commodities / Gold and Silver 2015 May 23, 2015 - 05:41 PM GMT

By: Michael_Noonan

Commodities

If there is any certainty in the world, [and there is very little], it is that the demand for gold and silver is at its highest and has been running at a fevered pitch for several years. From John Keats "Ode On A Grecian Urn," "...that is all ye know on earth, and all ye need to know." Anything else stems from subjective conclusions drawn from lying politicians, no matter the source or government. They all lie under the aegis of political diplomacy. For Obama and his entire administration there is very little diplomacy, so mostly just lies.


If the leading economic powerhouses, China and Russia, have been accumulating as much gold and silver as is available, and keeping every ounce each of those nations produce, with nothing being exported, cut through all of the rhetoric and do as they do, and do not listen to any Western country/central bank/bought-and-paid-for-media that says gold has no value. Buy each or either metal [the gold/silver ratio favors accumulating silver more so than gold, but that is an opinion], and obtain physical possession yourself.

There is ample record evidence that banks are totally unreliable if it is known that any gold or silver is being held, either by consent for a fee or in a safe deposit box. If you have any PMs in a bank, guess who really owns it? Word is that even allocated gold owned by wealthy clients, in the hundreds of millions of dollars, is missing. Who cares? That is their problem, not yours. The point to be made is we all live in a world where it is a matter of self-survival.

Everything, at least in the Western world, is breaking down: society, laws, governments, all are being ignored by the upper echelons. There is no punishment for bankers, none for lying politicians/bureaucrats. All politicians are unresponsive to those they purport to represent. Laws only apply to the working masses. In the United States, local police forces have increasingly become militarized, more heavily armed than actual soldiers engaged in war, as the corporate federal government prepares the population for martial law. Operation Jade Helm 15 is no simple military exercise to acclimate soldiers to war-like conditions. No country is more engaged in war around the world than the United States where soldiers get on-hands experience. Jade Helm is just another ruse.

It is always the same or a variation of the same ruse: problem-reaction-solution, [See Elite's Game Of Jenga In Place, Your Move, 8th paragraph]. In the US, it is the constant threat of "terrorism" as a "problem," even though none exists. It is designed to elicit a fear "reaction" in order for the government to offer a "solution" of safety but at the expense of further loss of rights, the sole purpose of the government forces. Governments are the original arsonists that pose as ultimate firefighters to the rescue. This has all been carefully orchestrated by the elites over the last century, in this country.

All we can do is maintain a focus when it comes to buying and owning physical silver and gold. Forget about price. It is purposefully being manipulated by Western elite's central bankers, complicit with China as it acquires as much as possible at these suppressed levels. China has the US under a financial gun, and the US is compliant, quietly selling off assets to the Chinese to assuage them for all of the dirty deals the corporate federal government pulled over the past few decades. Payback is a *****, and for the US, tres expensive.

Nothing can be done about the low prices until all of this underhanded, behind the scenes payback is fulfilled. The scarier aspect of all this has less to do with price manipulation as the US has become more and more cornered and has been fighting its ultimate fate of elite imposed destruction of the entire country. To stave off the demise of its fiat "dollar," the US is doing what it can to start a war to provide cover and an excuse to blame its failure anywhere else other than where it belongs.

The primary farce known as the European Union, and its degenerate debt-laden offspring, Greece being the current example: Exit? Not exit. Pay back debts? Default? The elites will not allow Greece to fail. If Greece sets an example, Spain, Italy, France, and a host of other domino-effect countries are waiting in the deficit wings to follow suit. The self- implosion of the EU gets postponed, simply to die at a later date. All that is going on is nothing more than illusions being passed off as reality. Sadly, too many of the masses are compliant, ignorant, or simply too concerned about when the next government doled-out benefit [always at a bare-subsistence level] will arrive.

Nobody got it right in 2013, maybe a few were closer to recognizing nothing would happen in 2014, and so far, there is little to expect some kind of upside breakout to occur in 2015. We are not saying no breakout can or will occur, for we are of the mind that anything can happen. As we look at the charts, there is no indication whatsoever that the current trends are about to change. The imaginary worth of the US dollar, when compared to the imaginary worth of the other fiats, is still holding. There appeared to be buyers entering at the low-end of the most recent decline, as was noted the prior week, and last week that observation was confirmed.

In every market, one move is validated by a subsequent confirming price change, and until there is confirmation, what is being observed remains as potential. While the increased volume and small range at the sell-off low gave the appearance of buying activity, it still needed to be confirmed. The confirmation came during last week's rally.

If the high of the fiat "dollar" is the March 101 area, this current rally will show signs of weakening by decreasing volume, smaller ranges on rally bars, and poor close locations. If the opposite occurs, price can make new recent highs or move sideways to marginally higher, as the S&P has been doing.

For as long as the fiat "dollar" can maintain itself, the price of silver and gold are unlikely to stage any kind of meaningful rally.

US Dollar Daily Chart

When looking at the weekly chart, from left to right, the trend is obviously down, and any expectations for a sustained rally to the upside is an unreasonable one. The destructive ways of the United States-dominated [but fast becoming unraveled] Western world has not yet been exhausted, however much the people are.

There can be a few signs that are positive for buyers, of late, but it would be more like having a few warm days in Chicago at the beginning of March. Everyone knows there are many more cold days and snow, yet to come, before Spring finally arrives, meteorological March 21st, but realistically not felt until into April.

The weekly chart has not signaled the end of the down cycle.

Silver Weekly Chart

The daily is showing the potential for a small trend to develop on the upside, but it is in the context of a down market environment, and as price has been developing, the move has not been strong. There was a small upside breakout on the D/S [Demand over Supply] bar noted when resistance was broken, and that broken resistance may now become support, if it holds.

We keep saying it is important to watch how price reacts at obvious support or resistance, and resistance was briefly breached to the upside, last week. Price came back under the 17.45 area resistance [darker horizontal line], but did not extend the decline after sellers had an apparent strong down day, last Tuesday, 4th bar from end.

We see the how of the failure to continue lower and move sideways, instead, as a message that buyers are making their presence known. Still, the effort is small relative to the larger picture, as seen on the weekly chart.

Silver Daily Chart

Similar to silver, gold remains at the lower reaches of a protracted decline from the 2011 highs, and it is currently trading in the middle of a TR [Trading Range], where the level of knowledge is least reliable.

Gold Weekly Chart

The spike in volume for the D/S rally bar gave the gold rally a small burst just over the 1200+ level of resistance, but the overarching down trend kept it short-lived as price returned under defined resistance. If the D/S bar can hold the current reaction lower, gold stands a chance to rally above the 1230 area. As we keep saying, there needs to be signs of confirmation all along the way.

Gold Daily Chart

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.

© 2015 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.


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