Michael Noonan – When the globalist’s central bankers are in control, primarily the US/UK, they are proving their ability to supersede the natural forces of supply and demand with impunity. When they have the ability to “print” unlimited amounts of fake fiat, no other country can stand in the way, not even China.
On the other hand, neither China nor Russia wants to oppose the globalist forces of evil, for both of those nations see what is unfolding on the world’s stage is the kabuki theater death dance of the US and the inexorable fading away of the fiat Federal Reserve Note.
All that is going on in the world, especially in the Middle East, is about money and control, and the US is strong-arming every nation it can to use the “dollar” has a reserve currency, but more and more countries are turning away. War and destruction is all the US knows n order to get its way. The world is worse off because of it.
The insatiable demand and lessening supply of silver, the sovereign buying of Western gold by China (emptying as many vaults as have gold), and very legitimate fundamental considerations mean nothing, absolutely nothing. It is an exercise in folly to assess the reality of diminishing supply and increasing demand as a basis for expecting PMs to move higher. A look at the charts says the exact opposite.
Probably the ones who can better understand or appreciate this perverse anomaly are stock fundamentalist pre-2008. Their world was focused on value investing, standards that existed for decades upon decades. The charts told a totally different story, but not one believed by those intrepid fundamentalist who scoffed at charts, tolerated only when they backed a fundamental view.
What has been going on in gold and silver is the reverse of what transpired in stocks, just not as dramatic. However, as an aside, the crash of 2008 in stocks was just a test drive as that market prepares for an eventual collapse, in our opinion, but that is not our focus, at least for now. [We have already given ample warning to not be in the stock market.]
There have been some incredibly laudable analysis from several experts on how and why the fundamental factors for gold and silver cry out for higher prices, while at the same time, price continues lower creating a bit of understandable anguish in the PMs arena.
While what is being said may seem negative, one has to keep one’s head while the monetary forces of destruction play out their end game. At some point, reality will set in, and here is where it really gets negative. Will the globalists force WWIII, or something very close to it?
The globalists are interested in one thing and one thing only: “money,” which is hard to define because fiat is debt, and debt cannot be money. Gold and silver used to be the best measure of money, but they get in the way of the globalist control of the world’s money supply, actually non-money supply, to which the world dances, and not very well.
The biggest answer, for which no one knows is, When? When will the insanity that rules this sad world lose its grip, and at what cost to the remaining 99.99% that are subject to the whims and rules of the ultimate money game and money rulers?
As individuals, we cannot control what goes on. All any individual can do is be in control of him/herself and act in one’s best interests. The globalist’s financial world is spiraling out of control. People have as many warning signs as they choose to see, while most choose not to see because it goes against the lies they have come to believe as truths.
There is a 5,000 year history, or however many years of proof, that all fiat money fails, and that includes the so-called “dollar,” the phony Euro, the worthless Pound, the Yen that refuses to bow to reality, as globalist fiat “unreality” maintains control. In each and every instance of a failed fiat, it always took longer than most expected, and the fiat “dollar” is the final king of fiats that is next to fail.
When? We certainly do not know, and based on all other so-called experts, none of them have any idea, either. So the focus has to be on protecting our financial self-interests as best as can be done in a growing tsunami of uncertainty. The most reliable and proven certainty, in a financial sense, remains gold and silver. Paper gold and silver are worth what the paper is, and no more. Count on that, even if it is a piece of paper from a Swiss bank that says you own allocated and numbered gold and silver. Take it as a lie, and that you can take to the bank, for those who still choose to use one.
All that matters is physical gold and silver. As with paper, the price of physical PMs also has been going down. Those who choose to measure the utility of owning gold and silver in terms of price alone have lost a sense of their true utility, a storage of wealth. There are times when the “store of value” is negative. The cost of insurance is negative, so why carry any for self, home, car, etc? Insurance has no value if it is never used, yet people have it all the time. Why? Because they do not know when it will pay off to have it.
In the final analysis, one either believes gold and silver are a valuable form of insurance, or not, and any form of sophist reasoning does not matter. We choose to appreciate the value of gold and silver throughout history, and we recognize there are and have been times when holding them was a losing proposition, albeit temporarily.
In Chicago, 2 weeks ago, 100 oz silver bars cost $1,530, readily available. One week ago, a bar cost $1,490. What are the odds of silver dropping another $1 or $2 “dollars? That would result in a $100 – $200 loss, but only on paper. At some point, the odds of silver going to $20, $30, $40 the ounce are very probable, maybe even higher, which means it just gets better. Why should one be concerned over a potential decline in “value” [only on paper, so unrealized] while the world is fast going out of control, and owning silver, or gold, can result in substantial gains?
Stackers keep on stacking!
The gold:silver ratio has reached 78:1, last week, vacillating between 75:1 and a little higher. For this reason, we favor silver over gold, even exchanging gold for silver. The charts may not show a turnaround, at this point, so the when question remains in play, but so does the why question, as in why own PMs? History favors the why, and so does the future. We continue to recommend the purchase only of the physical PMs.
The charts show the ongoing and uncertainty of being able to answer the when. All we can say is, it just is not yet.
Time to show the annual and quarterly charts, not for timing, but because they show as true a picture of developing market activity as smaller time frames in terms of persistent direction. The annual shows wide range bars down with lower end closes, all typifying weakness. The Quarterly shows the same with potential support at 1,000, and should that price level fail to hold, down to 900. The monthly shows the same potential support at 1,000 based on prior developing activity from 2008 and 2009.
Simply as a general measure, but not considered absolute, a half-way retracement indicates the character of a trend. In a down trend, price usually fails to reach a 50% swing retracement indicating a continuing weak market, to stopping at/near 50% before resuming the trend lower. It is when one sees price rally above, and hold, a half-way retracement that it could portend a change in market behavior. Right now, a potential for change is absent, so there is no definitive answer for when.
Continue reading . . .
Michael Noonan is a Contributing Writer for Shift Frequency
SF Source Edge Trader Plus Jan 2016
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