Gold And Silver – Fundamental Tale Or Technical Reality?

By: Michael_Noonan

A few have inquired about our greater focus on the charts as they pertain to the Precious Metals, of late, a shift of which we have been cognizant. The reason is, it suits our purpose. Our purpose is to pursue profitable trading, and telling “stories” is not always apt, especially when almost all of them have been amply related in the news and written endlessly by cheerleading precious metals [PM] writers and newsletters.

Why is an analysis more focused on charts seem like such an obvious question? Last week, we provided a list of nine of the most recognized reasons for viewing gold and silver from a demand side perspective. There are many others you can think of, additionally. [See: It Is Always About One Thing: Timing, click on http://bit.ly/17Hctst} Repeating the same things is unnecessary, and those which have been aired so frequently seem not to have had much influence on sustaining higher prices.

From a totally different perspective, reminding and/or informing people about the intrinsic qualities in owning gold and silver: rights, title, and interest should have sealed the deal, as it were, as the ultimate reasons for acquiring and owning both PMs. [See: When Precious Metals Bottom Is Irrelevant To Your Financial Health, http://bit.ly/12Uz4Q6].

What else is needed to enhance the strong demand side of the market, and one that gets stronger with each passing month? Almost everyone is aware of the disappearing gold act sponsored [in stealth hiding] by the central bankers and abetted by lackey PM exchanges, COMEX and LBMA. Yet, on Thursday into Friday, there was another “take-down” in gold and silver futures. Where is all of this demand that is supposed to take price to elevated heights when it counts? Should you believe what you read/hear, or what you actually see?

The only problem that keeps PMs suppressed is the proverbial 900 lb gorilla in the room. It would be easier to identify that gorilla as the New World Order, [NWO], but too many do not comprehend/accept/believe that context. People are not capable of differentiating one’s country with the corporate government running/ruining it, and the real power behind the corporate government.

With over half the population dependent on some form of socialized government hand-out, and almost all of the Main Streeters overdosed on credit, for those politically unaware, but unaware of being unaware, from where is any opposition to government going to come?

Central banker/Lying Ben’s policy of keeping interest rates artificially low serves one purpose and one purpose only: bail out the corrupt bankers and keep all of the failed banks on resuscitation. The propping up of the banker’s massive Ponzi scheme is being accomplished at the destruction of people’s wealth.

Wealth is not confined just to those in the upper 1%, 5%, or even 10%. Wealth can be applied and defined in more ways than expressed high “dollar” figures. Health is one that rates highly. To the people in Cyprus, Greece, Ireland, and recently Poland, and elsewhere, bankers stealing from individual’s accounts, many of whom need what little money they have just to survive from one day/week/month to the next, and those amounts may not qualify them as wealthy, but the amounts mean a wealth to them.

The primary functioning arm of the NWO is control of money, and it is accomplished through the central bankers, none of whom have been elected in any representative fashion, but who, nonetheless run/control almost everyone’s lives. The reason why we cannot say everyone is because those who own and hold gold and silver are truly independent of government control over how they choose to live, financially.

Guess what bankers just did, while you were sleeping? They passed bankruptcy laws that puts derivatives in the highest secured position. First of all, who is responsible for the collapse of so many financial institutions since Lehman and AIG? Bankers! They engaged in high-risk ventures, [really nothing more than scams] that blew up in their greedy faces. A lot had to do with derivatives. Where have the trillions of fiat “dollars” needed to save the economy gone? To those same bankers who failed in what they created. But the unwritten law is, bankers cannot take a loss. Their practice is to reap and keep all the gains and socialize all the losses to the public.

What are derivatives? Essentially, derivatives are a contract between two parties dealing in equity, foreign exchange, interest rates, and recently Wall Streets’ mortgage securitization Ponzi scheme. Who created these derivatives? Wall Street bankers. Who suffered trillions in losses? Wall Street bankers. Who is footing the bill for these financial disasters? The unknowing American public.

The value of the derivative market could be 20 – 30 times the value of the stock market, in the neighborhood of $700 to $800 trillion fiat “dollars.” They are also called swaps, credit default swaps, currency swaps, etc.

With derivatives now immune from bankruptcy laws, who secures them? Guess what America, you do! How are they secured? By your bank accounts, brokerage accounts, pensions, IRAs, 401ks. Remember M F Global, a few short years ago? Why did people lose billions of dollars? That money went to Wall Street bankers who held tons of high- risk [and worthless] derivative claims that were first-in-line for payoff because bankers passed such a law. After bankers paid themselves for their failed losses, there was no money left to pay those who had deposits in their brokerage accounts. Poof! Vaporized. Gone!

We are sure the bankers thank you very much for your generosity in insuring them against all loss exposure. You did agree to it, didn’t you? The NWO dictates that you did.

Anyone with money in a brokerage account is at risk, to the tune of 100%! Got money in a bank? Any/every deposit you make into a bank is no longer your money. It belongs to the bank, and you are now an unsecured creditor! If the bank fails, and every single major bank has failed, being propped up by government loans, [not money you loaned, but your loss, anyway], your “deposit[s] is/are gone, poof, vaporized.

How does the risk is keeping money in a brokerage and bank account stack up, to use a PM term, to owning gold at $1,200, $1,500, or $1,800, and silver at $20, $30, $40? There is no third counter-party risk in owning either metal. None! Neither gold nor silver can go poof on you, get vaporized, or disappear, [unless you hold it in "enemy territory" where it can [and will be] confiscated. With gold and silver, you have 100% interest in, rights and title to their ownership [another mention of When Precious Metals Bottom Is Irrelevant To Your Financial Health, http://bit.ly/12Uz4Q6].

What other investment affords you 100% backing? It remains the only investment with a history going back over 5,000 years, and it is recognized and accepted around the world.

Stop and [re]think. What does $1,300 gold mean? It means instead of requiring the old $35 fiats, or $250 fiats, $500 fiats, you now need 1,300 fiats to purchase the same ounce of gold that used to be just $35. Gold and silver are not going up in value, they are holding relative value. Fiat currency has declined in “value,” and you need more and more of the worthless fiats that the 900 pound gorilla NWO is constantly depreciating.

Who/What else can exert such “influence” at will in a PM market that is dominated by exceptional demand and limited supply relative to the growing demand? Only the NWO central bankers. What other positive “news” or “new” development have you heard or read about that can rally gold and silver?

Why do they continue to be so easily manipulated to the downside, at will and whim? We can think of no other situation or story that has not already been covered, many times over that will cause a sustained rally in gold and silver.

As we often say, do not listen to what others are saying about the market, listen to what the market is saying about others. And that information comes from the charts.

Write your own bullish scenario for gold, then compare it to what the chart says. Which is to be believed, an incredible tale of demand, or the reality of the chart?

The situation is no different in silver. Do you really need another “bullish story” to enforce your existing belief in silver or gold? If you do, you are reading the wrong analysis. The chart says neither PM has blossomed into a bullish chart picture, and we place our beliefs in what the charts say.

Quite frankly, we have run out of bullish reasons and simply prefer the reality of the story of the market, always the best and most reliable source. We expect higher prices will be forthcoming, but not in the way most PM pundits have been “predicting.” We offer no predictions. Instead, we read what the market says and endeavor to follow accordingly.

For right now, the market is in no pressing hurry to the upside, and it continues to remain susceptible to easy declines. The 900 pound gorilla still holds sway.

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.

© 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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