Best of the Week
Most Popular
1. Dollargeddon - Gold Price to Soar Above $6,000 - P_Radomski_CFA
2.Is Gold Price On Verge Of A Bottom, See For Yourself - Chris_Vermeulen
3.Dow Stock Market Trend Forecast 2018 - Nadeem_Walayat
4.Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - P_Radomski_CFA
5.Why The Uranium Price Must Go Up - Richard_Mills
6.Dow Stock Market Trend Forecast 2018 - Video - Nadeem_Walayat
7.Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future” - GoldCore
8.More Signs That the Stock Market Will Rally Until 2019 - Troy_Bombardia
9.It's Time for A New Economic Strategy in Turkey - Steve_H_Hanke
10.Fiat Currency Inflation, And Collapse Insurance - Raymond_Matison
Last 7 days
Gold Price Seasonal Trend Analysis - Video - 20th Sep 18
The Stealth Reason Why the Stock Market Keeps On Rising - 20th Sep 18
Sheffield School Applications Crisis Eased by New Secondary Schools Places - 20th Sep 18
Precious Metals Sector: It’s 2013 All Over Again - 19th Sep 18
US Dollar Head & Shoulders Triggered. What's Next? - 19th Sep 18
Prepare for the Stock Market’s Volatility to Increase - 19th Sep 18
The Beginning of the End of the Dollar - 19th Sep 18
Land Rover Discovery Sport 'Approved Used' Bad Paint Job - Inchcape Chester - 19th Sep 18
Are Technology and FANG Stocks Bottoming? - 18th Sep 18
Predictive Trading Model Suggests Falling Stock Prices During US Elections - 18th Sep 18
Lehman Brothers Financial Collapse - Ten Years Later - 18th Sep 18
Financial Crisis Markets Reality Check Now in Progress - 18th Sep 18
Gold’s Ultimate Confirmation - 18th Sep 18
Omanization: a 20-year Process to Fight Volatile Oil Prices  - 18th Sep 18
Sheffield Best Secondary Schools Rankings and Trend Trajectory for Applications 2018 - 18th Sep 18
Gold / US Dollar Inverse Correlation - 17th Sep 18
The Apple Story - Trump Tariffs Penalize US Multinationals - 17th Sep 18
Wall Street Created Financial Crash Catastrophe Ten Years Later - 17th Sep 18
Trade Wars Are Going To Crash This Stock Market - 17th Sep 18
Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - 17th Sep 18
Financial Markets Macro/Micro View: Waves and Cycles - 17th Sep 18
Stock Market Bulls Prevail – for Now! - 17th Sep 18
GBPUSD Set to Explode Higher - 17th Sep 18
The China Threat - Global Crisis Hot Spots & Pressure Points - 17th Sep 18 - Jim_Willie_CB
Silver's Relationship with Gold Reaching Historical Extremes - 16th Sep 18
Emerging Markets to Follow and Those to Avoid - 16th Sep 18
Investing - Look at the Facts to Find the Truth - 16th Sep 18
Gold Stocks Forced Capitulation - 15th Sep 18
Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - 15th Sep 18
Trading The Global Future - Bad Consequences - 15th Sep 18
Central Banks Have Gone Rogue, Putting Us All at Risk - 15th Sep 18
Gold Price Seasonal Trend Analysis - 14th Sep 18
Growing Number of Small Businesses Opening – and Closing – In the UK - 14th Sep 18
Gold Price Trend Analysis - Video - 14th Sep 18
Esports Is Exploding—Here’s 3 Best Stocks to Profit From - 13th Sep 18
The Four Steel Men Behind Trump’s Trade War - 13th Sep 18
How Trump Tariffs Could Double America’s Trade Losses - 13th Sep 18
Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - 13th Sep 18
Trading Cryptocurrencies: To Win, You Must Know Where You're Wrong - 13th Sep 18
Gold, Silver, and USD Index - Three Important “Nothings” - 13th Sep 18
Precious Metals Sector On a Long-term SELL Signal - 13th Sep 18
Does Gambling Regulation Work - A Case Study - 13th Sep 18
The Ritual Burial of the US Constitution - 12th Sep 18
Stock Market Final Probe Higher ... Then the PANIC! - 12th Sep 18
Gold Nuggets And Silver Bullets - 12th Sep 18
Bitcoin Trading - SEC Strikes Again - 12th Sep 18

Market Oracle FREE Newsletter

Trading Any Market

Gold And Silver – Value Remains Irrelevant To Price

Commodities / Gold and Silver 2017 Jul 30, 2017 - 01:56 PM GMT

By: Michael_Noonan

Commodities

Value is subjective, reflective of one’s feelings or opinions. In the minds of those who value gold, throughout the ages and around the world, this precious metal is deemed to have an intrinsic value superior to most other assets. The well-used adjective, intrinsic, is also subjective, construed as essential, belonging naturally in its association with gold. In the end, “intrinsic value” is elusive, a figment of one’s mind.

There are many, and we fall in this camp, who associate gold with an inherent preservation of wealth. This has been true throughout history but with intervening failures during some time frames. Failure may not be the most apt expression, but many detractors are happy to point out those times when gold did not retain its status as a wealth preserver, and in fact, losses were on the table for many who paid a price higher than for what their gold was sold. It happens. The net result of gold being a wealth preserver holds true, but with periodic, and some times substantial, yet temporary, reversals. This time will be no different.


Price is objective, not dependent upon one’s feelings or opinions for price is an actual number. The subjective value of gold is somewhat intertwined with the objective price of gold through the natural laws of Supply and Demand. The latter are a function of what is available [Demand], in relation to the desire to have what exists [Supply], The desire to acquire can be greater or less than what is available, and that is what eventually determines price.

The natural laws of Supply and Demand have been usurped by the elites in their fervent determination to have a One World Order where the globalists are in charge of everyone and everything. The United Nations is the political arm of the globalists, while the Bank for International Settlements [BIS] and the International Monetary Fund [IMF] are the controlling financial entities used to dominate sovereign countries, dictating policies and controlling [enslaving through debt] the masses.

The globalists have been manipulating the price of gold since the formation of the US Federal Reserve in 1913. The formation of the Bretton Woods System, established in 1944, which is also when the IMF was created, led to an international basis for exchanging the currency of one country for any other, and the closing of the gold window by Nixon in 1971 were pivotal events that led up to massive and ongoing manipulation of gold by the central bankers of the world.

The run-up in the price for both gold and silver in 2011 was a precursor of the actual demand for the physical metals. They represent sound money, and the globalists would not tolerate any competition for their paper fiat Ponzi scheme of creating money out of thin air and demanding interest for the “privilege” of its use. This is the primary reason why both gold and silver have been “beaten down,” as it were, to current levels over the past 6 to 7 years.

Drive down the price of both metals and tire out the public from any desire to own a declining “price” asset. This has been the ongoing objective of the globalists in order to corral everyone into their digital web of financial control from which there will be no escape. There is a similar Ponzi scheme going on in the stock market which continues to defy the laws of Supply and Demand, and gravity, as well.

The globalists have destroyed the middle class and elderly savers by driving interest rates to zero, and negative in some parts of the world. With no way to earn a return on one’s savings, people have been forced into paper stocks, around the world, chasing some kind of return on their money assets [while exposing themselves to tremendous loss of capital when the markets go south with “unexpected” impunity.] The unexpected part is only for those who fail to use business and financial sense, aka lemmings.

Debt around the world is in the trillions and has never been higher at any time in history. Even worse, financial derivatives is 10 to 100 times greater [owned by financial banks, for the most part], with no hope of ever being able to control them once market reverse to the downside. The globalists have created so much debt to save the totally bankrupt banking system.

Financial Armageddon is waiting in the wings. At some point, it will be unable to be controlled and financial disaster will prevail around the world. At that point, the price of gold will no longer be in control, and it will become subservient to the value of both gold and silver. The question all have been asking, especially those owning and holding either or both gold and silver, is when will price begin to reflect reality?

Reality, as most sane people would define it, does not exist while the globalists are financially in charge, and in charge they are. The war on cash is another example of how the bankers are preparing to financially fleece as many people as possible. Control over how much of their own money one can withdraw from a bank has been in place for several years, now. The destruction of the “dollar” [and the United States], continues unabated. All of the signs are there.

Who will survive? One group will be the owners of physical gold and silver. Of course, they will be subject to confiscation, theft, and government control, among others. That will be a small price to pay for having preserved, and more than likely greatly enhanced the value of their holdings. Trade and barter have always existed, and the demand for concrete, as opposed to paper or digital [non]-“assets” ensure value will prevail.

When will that process begin? [That never-ending question that has no viable answer.]
It will not happen one day sooner than when it begins, and that is not as nonsensical as it may seem. Many holders of the physical may feel like the Greek mythological Sisyphus for the past several years. Unfortunately, the duration of globalist control does not appear to be ending any time soon. How do we know at least that?

To the charts…

The actual monthly close will be on Monday, but a single day is not likely to materially alter the chart interpretation. The takeaway from this and every other time frame is that a strong rally is not imminent. In fact, we are more likely to see more of the same. the potential for positive change always exists, but until we can see such change developing on the charts, more sideways activity will continue.

TRs [Trading Ranges], are the least telling as to direction. Right now, price is almost at the center of the TR and can go in either direction without changing the TR, at least until there is a decisive breakout, either way.

More of the same…nothing revealing.

Silver remains weaker, relative to gold. For July to prove its potential for change, price needs to follow through to the upside, or, at a minimum, have a shallow correction.

The comment on volume in the chart is the most positive statement we can make.

Why say more than what the chart clearly reveals?

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.

© 2017 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