War on Gold and Silver
Commodities / Gold and Silver 2013 Apr 28, 2013 - 12:40 PM GMTBy: Michael_Noonan
War [unofficially] declared on gold and silver!
The gloves are off, and central bankers are on a full frontal assault against all [paper] holders of gold and silver. Ironically, that very overt assault is the biggest clue of how fearful those in power really are. Fear, a sign of weakness, and the New World Order does not want anyone snooping behind their curtain of Oz.
Remember the adage, "Follow the money," the paper trail? All of the Western countries drowning in debt, being force-fed to take on more debt as the only solution, are symptoms, and that is where central bankers want you to remain focused. They do not want anyone to follow the money in reverse to discover the cause: their fiat power is purely imaginary, just like the true value of what they issue, worthless paper!
We covered how those in control will stop at nothing to maintain it in our previous commentary, Central Bankers: You Are Golden Toast On A Silver Spoon, [click on http://bit.ly/13nLItm if you missed it, along with important growing demand.]
This is the Rothschild formula that has worked ever since Mayer Amschel Bauer turned fiat alchemy into gold and built the House of Rothschild. Lend, lend, lend money, and demand gold as payment in return is the essence of how it works. People refuse to learn from history. "Give me control of a nation's money, and I care not who makes the laws."
It is the lethal simplicity of this statement that has been unfolding on the world stage for hundreds of years for everyone to see. Few have paid attention.
You saw this when the United States went bankrupt in 1933, and the foreign-owned Federal Reserve took over this nation's money supply, pushed out and destroyed any and all gold and silver-backed currency, and replaced it with the commercial debt instruments in circulation, Federal Reserve Notes, [FRNs]. What backs FRNs? Your imagination! That, and the threat of the existing police state.
What is a Euro? Nothing but more imaginary money, backed solely by the belief that is has value. This is a large part of why the attack on gold was so relentless. The NWO wants to crush any idea of imagining an alternative to their fiat control.
Those who understand the value of that barbaric relic are going to be the clear winners. Those who chose to hold paper were the biggest losers, stopped out, washed out by a tsunami of no-margin-required-short-selling. It was the JPMorgan version of, "I will huff, I will puff, and I will blow your paper house down." That scenario worked against all except those who built their financial "house" with physical silver and gold.
It is essential for your financial survival to buy and hold physical gold and silver. There is no law against it, for now. These two metals defy the law of gravity that governs all paper fiat. We presented this chart by Sharelynx, a few weeks ago. It is the proverbial picture worth a thousand words that clearly demonstrates how fiat always seeks its own level of [worthless] value. It is this, getting to the root cause, [fiat],that was responsible for the [temporary] crushing of PMs on the 12th and the 15th of April.
You can see how the reality is opposite to what people sadly continue to believe. Change your belief, and you change your reality. It is that simple. Those who continue to believe in the [no] value of paper will continue to suffer.
JPMorgan, by far the largest naked short-seller in the gold market, and proxy for the New World Order, which in turn is the leader of all Western governments, declared open war against the precious metals, [PMs]. Who were the losers? Those who built a "house" of paper. For months, we have been strongly and unabatedly advocating the purchase only of physical gold and silver, "with impunity," and "at any price."
We have also advised not to buy futures. Those in futures lost their hopes for the future of their paper holdings. They played into the come-into-my-web premise fostered by the manipulators of the paper markets. There has been a very cogent reason for the repeated warning, If you do not hold it, you do not own it. Everyone gets to make choices, and everyone has to take the responsibility for those choices. For those who chose paper, it has been an expensive lesson
It is crucial that the buyers and holders of physical gold and silver stay the course. What has been the purpose of the gold and silver smackdown? It is the destruction of any belief that gold and silver have value.Look at the above chart, again. Who has been the only winner in the battle between fiat and other paper holdings vs physical holdings? It has been that way for over 5,000 years, and it ain't going to change this year or next.
[We do have some charts at the end of this commentary]
Not only should you stay the course in holding the physical, you should continue to buy more! Price does not matter!!! Yes, the price of gold and silver dropped to $1,320 and $22, but you could not buy any at that level. What little was available before nothing became available was subject to sharply increased premiums. How much longer does anyone think that governments will continue to offer gold and silver coins for sale?
Governments, directed by the NWO, do not want any competition to their fiat. None! The end game for fiat is drawing to a close, but until that happens, governments are forcing people into paper as much as they can before that paper house of cards collapses. Just take a look at the paper-value-driven stock markets. The Fed is keeping interest rates low for the sole purpose of giving easy money to bolster the entirely insolvent banking cartel.
With no returns on interest-bearing financial instruments, the only alternative it the stock market, by government design. The Fed is feeding whatever amounts of paper banks want to keep propping up the markets. Like every other paper-driven "asset," those markets will also collapse. 2008 was your first and only warning of what can, and will happen.
Gold and silver is a form of wealth. Wealth is anathema to government because those who have wealth do not need to depend upon government for assistance. Stripped of their wealth, Americans have become dependent upon the government for survival. It is no accident that the number of Americans receiving food stamps is at its highest ever, and growing with each passing month. People on Social Security depend on their checks for financial survival. Why? They have no wealth! They have no means of financial independence. They traded their freedom for a government subsidized "safety" net.
Those Americans who own gold and silver can get along without any government hand- outs. They have financial independence. They are the only ones who came out of the gold/silver scare unscathed. Yes, there has been a "loss" in the purported value of the bullion markets, but it has prompted a world-wide buying spree with record amounts of gold and silver coins/bars being sold, uncovering a scarcity of supply of the physical.
Paper prices for gold and silver on the COMEX and LME are based upon fraud and not a function of supply and demand. While exchange traded paper values are down, the demand for physical is going through the roof.
Be aware, and be very, very careful. There will eventually be a flurry of financial firms going belly up. Banks are insolvent, holding worthless derivative assets on their books. Bank account holders are being held responsible for paying for the vast losses by the bankers who created them. Bank accounts are being frozen while mandatory "haircuts" are imposed. Wealth taxes are in the process. The NWO has become more desperate than ever. Anyone with money in banks will lose it. Gone. Stolen.
Recently, ABM AMRO sent a letter to its clients that the bank would not deliver physical gold to satisfy any accounts asking for/demanding delivery. Only cash would be offered. There is your first openly declared default, well, ABM is calling it something else, but the result is the same. The gold ain't there! The cupboards are bare. To cover it up, the war on paper went into effect last weekend. Do not fall for this financial scam.
Already, the exchanges will not deliver physical gold or silver to meet contract demands. M F Global was one example of how demand will be dealt with as the occasion arises. By smashing the paper market, those who were long and stopped out will no longer be able to make a claim for delivery, anymore. The message: Do not threaten our fiat system!
Buy gold. Buy silver. Everyone wants to get as much value for their purchases as they can. However, we are getting closer and closer to the time when the availability may not be there, at any price. As we have been saying, Get while the getting is good! Get to know your bullion and coin dealers as best you can. They are your last form of reliable supply. Expect to pay higher premiums. The alternative may be the inability to buy at all.
If gold were to go to $3000 or higher, silver to $150 or higher, would you complain if you had to pay a higher premium to own either? Would you be disappointed for not having paid a higher premium and not having bought more as a consequence? We are not being cavalier about price, but this is also not a time to quibble.
The one last aspect about the gold and silver market for which no one has an answer is the question of when? When will the price of gold and silver take off? If anything can be learned by the take-down of paper gold and silver, it will not be soon. In fact, it can take years from now. You have been given clear warning that the powers that be will NOT give up any time soon, or even readily. To expect otherwise would be folly.
The United States is in the process of devolving into third-world status. The fiat FRN is being forced out as a world reserve currency, especially by the BRICS, [Brazil, Russia, India, China, South Africa]. The arrogant "leaders" within the US, driven by Fed policy, have alienated the rest of the world with the unabated inflation inflicted upon them. The US has become more and more financially isolated, continuing with each passing week. None of this is being covered by the mainstream media because the government will not allow it.
It is this worsening condition, being kept from unsuspecting Americans who cling to the outdated beliefs that America is the land of the free, and the best country in the world. Americans will be kept in the dark for as long as the de facto corporate government can get away with it. This is a different story, and one that needs to be told, but it is not the time or place here. Instead, we will look at the longer time frame charts to see what possibilities lie ahead as a timing factor.
A few points of importance to always keep in mind. We had been holding out for the potential of support at the lows of the respective trading ranges on both gold and silver prior to the JPM smashdown. That was a reasonable assessment up until those lows were to be broken, for it was possible they could have held. Once broken, we have new information from the market to reassess what may develop from the new and currently developing market activity.
Throughout the above held notion of potential support, we did not advocate being long the futures in either market, worth noting. [Save for a few short-term buys that were net profitable, on balance.]
The other important point to reiterate is what we often repeat, "Anything Can Happen." The events of 12 and 15 April amply bear that out. Prior to Friday the 12th, few expected what was to ensue. However, if one were prepared for the notion that Anything Can Happen, the use of stops would have minimized any downside exposure, for anyone who chose to be in futures. Never forget those three words.
You should also know that when surprising events do occur, of whatever magnitude, they almost always occur in the direction of the primary trend. We always turn to the charts to read developing market activity. For gold, an annual chart is used.
We take current developing market activity, as determined by the market and translated into charts, as the means for reading the message of the market. Almost no one looks at annual charts, but they are more controlling than lower time frames, so what it says can be quite significant.
These are different charts than we normally present, so it may take three clicks on the chart to get the print to where it can be read. The time factor from the chart may be disappointing to most, but it should not alter one's plans to continue to acquire physical gold and silver.
The annual chart for silver does not have the same read as gold's. The Quarterly chart has a clearer picture for potential support. Prior to writing this commentary, we were of the mind that another assault lower was a reasonable possibility. Should that be the case, it had best be a shallow one, for silver is in a more precarious chart position. A marginal lower low on less volume and smaller bars would hold recent lows. If JPM has plans for another stronger drive, $20 silver is not out of the question.
This should not alter one's plans to acquire more physical silver. The reason has nothing to do with the absolute price of silver, but more for the political environment for an ability or availability to be able to buy more. The government may simply stop minting silver coins, for national security, or any reason it may want to justify while it protects its fiat flanks.
None of this is a prediction of what will happen. Rather, these are potential considerations within which one should be prepared should any happen. The NWO is firmly in control, as has been witnessed in Cyprus and Greece. People in both countries are more and more in dire straights. Poverty levels are growing. Sadly, children are suffering, with stories of them rummaging though garbage for meals to survive. If you should ever doubt how callous and uncaring are those unelected central bankers who are dictating to debt-ridden countries, it can, and most likely will happen here. In many ways, it already has.
As a final thought, and an important consideration, both charts are of a fictional market, the "supply" side only, as the FED and JPM wants you to view them. What is missing and cannot be charted is the more realistic demand side. There are ample reports that you have read, elsewhere, telling of the long lines around the world as people, other than most Americans, know and understand the value of owning physical gold and silver. The prices in the physical market for large volumes was unaffected, for the most part. We are talking about countries buying, like Russia, China, India, Turkey.
It is what does not show up in the paper charts that may be the strongest part of what is really going on in both gold and silver. If the demand is as has been reported, there is a limited downside from here. However, keep in mind the "box" from the annual gold chart. Even if the lows are in, there is still a lot of resistance from existing anti-PM powers that will not go away, and it can, and most likely will take longer than most want/expect for a substantial increase in the prices for gold and silver. The one exception would be a surprising V-Bottom, where price sling-shots to the upside.
Plan accordingly.
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.
© 2013 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.
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