Best of the Week
Most Popular
1.Canada Real Estate Bubble - Harry_Dent
2.UK House Prices ‘On Brink’ Of Massive 40% Collapse - GoldCore
3.Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - Nadeem_Walayat
4.Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - Marc_Horn
5.5 Maps That Explain The Modern Middle East - GEORGE FRIEDMAN
6.Gold Back With A Vengeance As Bitcoin Bubble Bursts - OilPrice_Com
7.Gold Summer Doldrums - Zeal_LLC
8.Crude Oil Trade & Nasdaq QQQ Update - Plunger
9.Gold And Silver – Why No Rally? Lies, Lies, And More Lies - Michael_Noonan
10.UK Election 2017 Disaster, Fake BrExit Chaos, Forecasting Lessons for Next Time - Nadeem_Walayat
Last 7 days
UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - 21st Jul 17
The Fed May Show Trump No Love - 20th Jul 17
The 3 Best Asset Classes To Brace Your Portfolio For The Next Financial Crisis - 20th Jul 17
Gold Stocks and Bonds - Preparing for THE Bottom - 20th Jul 17
Millennials Can Punt On Bitcoin, Own Safe Haven Gold For Long Term - 20th Jul 17
Trump Has Found A Loophole To Rewrite Trade Agreements Without Anyone’s Permission - 20th Jul 17
Basic Materials and Commodities Analysis and Trend Forecasts - 20th Jul 17
Bitcoin PullBack Is Over (For Now): Cryptocurrencies Gain Nearly A 50% In Last 48 Hours - 19th Jul 17
AAPL's 6% June slide - When Prices Are Falling, TWO Numbers Matter Most - 19th Jul 17
Discover Why A Major American Revolution Is Brewing - 19th Jul 17
iGaming – Stock Prices - 19th Jul 17
The Socionomic Theory of Finance By Robert Prechter - Book Review - 18th Jul 17
Ethereum Versus Bitcoin – Which Cryptocurrency Will Win The War? - 18th Jul 17
Accepting a Society of Government Tyranny - 18th Jul 17
Gold Cheaper Than Buying Greek Villas in 2012 - 18th Jul 17
Why & How to Hedge the Growing Risks of Holding Stocks - 18th Jul 17
Relocation: Everything You Need to do for a Smooth Transition Abroad - 17th Jul 17
A Former Lehman Brothers Trader: It’s Time To Buy Brick And Mortar Retailers - 17th Jul 17
Bank Of England Warns “Bigger Systemic Risk” Now Than 2008 - 17th Jul 17
Bitcoin Price “Deja Vu” Corrective Sequence - 17th Jul 17
Charting New Low in Speculation in Gold and Silver Markets - 17th Jul 17
Bitcoin Crash - Is This The End of Cryptocurrencies? - 17th Jul 17
The Fed's Inflation Nightmare Scenario - 17th Jul 17
Billionaire Investors Backing A Marijuana Boom In 2017 - 17th Jul 17
Perfect Storm - This Fourth Turning has Over a Decade of Continuous Storms to Come - 17th Jul 17
Gold and Silver Biggest Opportunity Since Late 2015, Last Chance at These Prices - 17th Jul 17
Stock Market More to Go - 17th Jul 17
Emerging Markets & Basic Materials Stocks Breaking Out Together - 16th Jul 17
Stock Market SPX Uptrending Again After Microscopic Correction - 15th Jul 17
Global Currency Reserve At Risk - 14th Jul 17
Picking Great Gold Stocks - 14th Jul 17
BBC Tree Expert's Verdict on Sheffield Amey / Labour City Council Tree Felling's - 14th Jul 17
SPX Cycles, Fed Funds and Gold - 14th Jul 17
Should Platinum Be More Expensive Than Gold? - 14th Jul 17
What's Next for US Dollar, Stocks, Bonds and Gold? - 13th Jul 17
India Gold Imports Surge To 5 Year High – 220 Tons In May Alone - 13th Jul 17
Gold and Silver: Your Stomach Is Probably Wrenching Right Now - 13th Jul 17
Gold Industry Is In A Deep State Of Dysfunction, Delusion And Denial - 13th Jul 17
Cryptocurrency Bloodbath! Sell Everything We Were Totally Wrong! - 12th Jul 17
Gold to Silver Ratio - Preparing for THE Bottom - 12th Jul 17
Iran and North Korea: Brothers in Nuclear Arms - 12th Jul 17
Down Dollar Down: Time for "UP"? - 12th Jul 17
Most Tech People Are Too Young To Remember That Silicon Valley Hasn’t Had A Real Crisis In 17 Years - 11th Jul 17
Stock Market Rally May be Over - 11th Jul 17
Silver Price Plunge Is Nearing Completion - 11th Jul 17
Soaring Global Demand for Lithium Presents Triple-Digit Profit Scenario - 11th Jul 17
Gold Price Outlook Increasingly Bullish - 11th Jul 17
Sheffield Street Tree Protestors / Campaigners vs Amey Labour City Council 2017 - 11th Jul 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Good News, Bad News, Both Favor Gold And Silver

Commodities / Gold and Silver 2016 Apr 23, 2016 - 02:06 PM GMT

By: Michael_Noonan

Commodities

First, the good news and taking a moment to celebrate the recent unstoppable rally in both gold and silver where, as has been expected, silver is outperforming gold. While we have stayed clear of paper futures from the long side, over the past few years, almost each and every week we have continued our mantra of buying and accumulating the physical metal. It is beginning to pay off, especially for purchases made throughout last year and this one.

This is not yet a victory lap, for the market remains in its transitioning phase, but the faithful, for what has always been considered the only true form of money: gold and silver, can relax more and shed the deer-in-the-headlights look after seeing both pummeled to the downside so relentlessly over the past several years by the money changers.


In the battle being waged between Truth [physical gold and silver] and Lies [all paper contracts], the indestructible PMs will always prevail, and the time is nearing. On Thursday, at the peak of the rally, and during yet another Draghi lie called a press conference, “someone” dumped over $2 billion in paper gold onto the market. That is 16,000 paper contracts, with emphasis on paper contracts for it sure was not physical gold that was being dumped. For silver, around 7,500 contracts were sold at the same time.

How much more blatant can the central bankers be? How much more will be the effect of such stupidity? Holders of the physical know very well what is being “sold” is useless paper, not the real metal, and as with QE-t0-infinity, bankers have pretty much run out of “fixes.” These are definite signs of the end game for PMs suppression.

While the Less Is More philosophy works well in the real world, more dumping of central bank paper is having less effect on the real market. Where the drinking of kool aid by the Jones cult led to the death of all 900 followers in Jonestown in 1978, those who currently continue to follow and “swallow” the globalist’s paper kool aid currency will also die a financial death, of sorts.

The relative few who have always held to the Truth of intrinsic value in physical gold and silver will not only survive the slings and arrows aimed at them, over the years, but will actually prosper when prices rise to reflect the reality of the lies lived by central bankers and their ilk regarding gold. Silver has been considered money for much longer than gold.

Now the bad news. The worse it gets, the better it is for silver and gold prices. The elites have created an untenable financial crises on a global scale. To be sure, the directed chaos has always been with but one objective in mind, the global New World Order, even more unstoppable than the recent PMs rally.

The Rothschilds, the Rockerfellers, the Bilderbergers and all of their minions so dutifully meeting every year, the duplicitous likes of the Kissingers and Soros’, and the sycophant leaders of the Western world countries have all done everything possible to rid the globe of freedom in favor of the yolk of servitude to those that yield power. This will not end well for the people, and we have seen exactly how for those in Greece, the Middle East and elsewhere as financial stability has been replaced with IMF-directed instability.

The US has wrought more war and destruction everywhere it goes as it strip-mines other country’s natural resources, especially oil, harvesting drugs as the world’s largest narcotic dealer, demanding compliance in support of its fiat currency at the barrel of so many guns and used so readily to ensure compliance. Unfortunately, this sad state of affairs has not yet ended, and if Neocon Hillary Clinton is elected president of the corporate federal government, expect the worst of times to follow.

The lap-dog European Union, led by fools like Draghi, a product of the Goldman Sachs Business School of Financial Thieves, where the EU has evolved in its tapeworm fashion to consume the previously sovereign individual European nations under a single umbrella, the EU has been a massive failure, especially for everyday people, enabled by each country’s leaders-turned-traitors to their own constituents, all in service to the globalists.

Well, for those who have held steadfast against the tide of the globalist power grab, the holders of physical gold and silver can extend a golden middle finger on one hand, and a silver middle finger on the other, and say in their best MC Hammer-esque way, “You can’t touch this!” True money, gold and silver, equates to financial independence from the tyranny of the elites. Roosevelt’s calling in of all gold held by citizens in the US was expressly for that purpose: the removal of the ability to remain independent of the federal government.

We start with silver this week because it has acted stronger relative to gold, as we have been anticipating, as silver tends to lead gold in up markets. It cannot be said that both PMs are definitively in up trends, but they are pointing in that direction.

The mid-range close for last week suggests sellers regained control from buyers, at least for now, otherwise, the close would have been higher. By deduction, one would reasonably expect to see some kind of corrective activity, in response.

The important 16+ level has been surpassed and has held. Chart comments explain why
there can be more reactive retesting, but if it unfolds in a weak manner and holds 16+ or higher, it will be additional feedback that higher prices are on the immediate horizon.

The mini-climatic action from last Thursday’s dumping of 7,500 paper contracts is laughable, both for its blatant attempt at manipulation to stop the rally, and also for the lack of downside follow-through evident from prior massive selling to suppress price. The ability to withstand such a central banker onslaught speaks to changes that are becoming more apparent in developing market activity.

Worth mentioning is the gold:silver ratio. A few weeks back it hit 82+:1. Last week, it touched 71+:1, intra day. We expect to see that ratio favoring silver more and more, looking for it to reach under 40:1, possibly under 30:1. A few weeks ago, we mentioned
switching out of some gold for silver as a gold/silver ratio play, exchanging at a net ratio of 75:1.

The weak correction since the 1280+ high, staying well above a half-way retracement, augurs well for gold. Some retesting of the low of the developed TR is expected, even
possibly going under 1200, briefly. What any kind of correction will do is provide some valuable feedback regarding the health of a transitioning trend to the upside.

Last week’s close near the bottom of the weekly range could lead to further weakness, and for that, we look to the daily chart for more detail.

While the swing high has the potential to be a mini-climatic temporary top, one has to be impressed with how gold has maintained the gains from the November/December 2015 lows. Such development is more typical of a strong up trending market and not one that is just beginning to transition out of a protracted down trend.

We have to wonder if this reflects the fact that the Shanghai Gold Exchange will now be
reporting the price for gold, and the LMBA has lost its “fixed” monopoly. The Chinese are in a position to have a much greater influence in pricing for gold and silver, so it gets “interestinger” and “interestinger.”

Good news, bad news, both are favorable for gold and silver. About time.

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.

© 2016 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

© 2005-2017 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