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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • Gold And Silver - Are You A Lion Or A Gazelle? You Had Better Know! 0 comments
    May 4, 2013 9:01 PM

    Saturday 4 May 2013

    Every morning in Africa, a Gazelle wakes up knowing it must outrun the fastest lion, or it will be killed and eaten. Every morning a lion
    wakes up knowing it must outrun the
    slowest Gazelle, or it will starve
    to death. It does not matter if you are a lion or a
    Gazelle...when the sun comes up each morning, you'd better be running. African Proverb

    We see the lions as issuers of fiat, Gazelles as owners of gold, and
    if you are uncertain as to which you are, the issuers of fiat will
    financially eat you alive. Cyprus was an overt wake up call. Many
    people in the U S think it will not happen to them. It already has.
    Each morning, when the sun comes up, you must decide if you want
    fiat or specie. One will slow down your ability to "run," the other will
    give you the ability to "outrun."

    In the "Battle For Investment Survival," you have a choice to make,
    and your ability to survive depends on it. As Gerald Loeb
    recommended, "Put all you eggs in one basket, and watch that basket
    very carefully."

    Switching analogies, central bankers, and specifically the privately
    owned corporation, aka the Federal Reserve, are like some cuckoo
    birds, the ones that deposit their eggs in another specie's nest. When
    the eggs hatch, the baby cuckoo bird will push out the other specie's newly born birds to their death, and the unsuspecting parents raise
    the cuckoo as its own.

    At the time when the privately held Federal Reserve Bank
    [unconstitutionally] took control of the US money supply in 1913,
    currency was specie-backed by gold and silver. The egg had
    hatched. Over the ensuing decades, the Federal Reserve removed
    the gold backing behind United States Treasury Notes and had them destroyed. A few decades later, all silver-backed certificates were
    finally removed, no longer "honored." [It is difficult to use the word
    "honor" in federal world of dishonor.]

    The unsuspecting public, like the unsuspecting new bird parents, came to accept fiat Federal Reserve Notes, [FRNs], as their own. The fiat-
    issue functioned the same as the gold and silver specie-backed United
    States Treasury Notes, buying and selling goods and services, etc, so
    the bait-and-switch was successful. [This is a classic example of how
    the NWO works, slowly over time, seemingly unperceptive, while
    almost no one pays close attention.]

    Unlike Cyprus, the green light for world central bankers to loot the
    savings of bank depositors, the Federal Reserve central bankers have
    been looting the United States via inflation since its takeover in 1913. The [lack of] "value" of a FRN is about 3 cents of what a 1913 FRN
    was. [See US Purchasing Power Measured By Gold chart, click on
    http://bit.ly/11M9uj4, first chart]. Inflation has always been
    recognized as the most insidious and stealth means of stealing every
    form of a nation's wealth.

    Central bankers have but one solution for a country with
    unmanageable debt: issue even more debt. Every country being
    force-fed that medicine is dying from it. The sole survivors will be
    the individuals who own the only successful antidote, gold and

    What has been the consistent and persistent target attack made by
    central bankers? Gold and silver, and none more overt than the one
    launched on 12 and 15 April by JP Morgan. Gold and silver are the
    antithesis of the destructive powers of central bankers. When all
    you own is fiat, central bankers can forcefully destroy its value
    through inflation, keeping its users in a captive mode of financial
    slavery. This has been and continues to be the end-game of the
    unelected elite, using the full force and control of central banks to
    keep the unsuspecting public compliant and unable to financially
    survive on their own.

    The question of whether to buy gold and silver is an answer already
    known by almost all who read commentaries like this. Should you
    continue to buy more is a question, the answer to which is apparent
    to most. For us, it is the best way to survive what is going to be a
    worsening and even more brazen theft of whatever people have that
    is unprotected.

    Obviously, everyone needs to rethink what is safe, for depositing fiat
    money in a bank has never been safe, as many are now just
    discovering. Every deposit into a bank is considered a loan to the
    bank. It becomes theirs, and the depositor is an unsecured lender,
    by bank laws, the only laws that matter, these days. Be very clear
    in understanding that reality.

    If you do not hold it, you do not own it. We have repeated that
    frequently, as we have also said not to leave gold and/or silver in any
    institution, not just banks. Read this article about Operation Rize,
    from the London Evening Standard, [ http://bit.ly/N4hdhR] . The
    first several paragraphs describe how several of the safe deposit boxes contained what may be illegal holdings, as though the unwarranted raid were justified by the legally limited, 3, number of actual warrants.

    "...the vast majority of the 3,500-plus box owners have turned out to
    be innocent
    ." They have been presumed guilty unless they can prove their innocence.

    "Yet the true story of Operation Rize reveals something far more
    chilling - a virtually un-noticed change in the law that strikes at the
    very heart of the British justice system. Under the Proceeds of Crime Act of 2002 (known as POCA), valuables and cash above £1,000 are
    presumed by the police to be the proceeds of crime, unless you can
    prove otherwise, a total reversal of the presumption of innocence."

    If you believe what happened in Cyprus will stay in Cyprus, what
    happened in London will stay in London, you are ignoring your future.

    Will the price of gold and silver continue to go lower. We think they
    will. Does that mean you should wait before buying more? That has
    now become a personal decision that needs to be viewed in the
    context of what has been expressed above, and there are so many
    other instances that can be cited.

    There is no single answer, no right answer. However, one to be
    considered is the "averaging down" concept. The notion is to average
    the cost of ownership of something over time. Usually, buying
    something that is going down is not a good practice. In this
    instance, it is different. It is a matter of fiat fraud by central bankers
    and a matter of survival by those in opposition.

    What we know for sure is that those in power have power and will not
    give it up easily. They will destroy anyone who gets in their way. As central banker Draghi stated: "We will do everything in our power to
    save the Euro." He did not say "We" will do what we can to help out
    the people of any sovereign nation. No central banker ever would.
    You saw the form of their help in Cyprus. The sole objective is
    preservation of the [unelected, unrepresented] central banking cartel.

    The charts of gold and silver may no longer reflect the reality of supplyand demand, but they do serve a purpose to keep an eye focused on
    the success or failure of the Powers That Be in their destined-to-fail
    attempts to defend fiat currencies, at all costs, and reverse over
    5,000 years of history of failure of such endeavors.

    Our advice is to have a strategy to keep buying physical gold and
    silver, according to your own needs and circumstances, and be smart
    about it. Do not think you can outdo those who are in control, at
    least in the short run. Averaging down, in current circumstances,
    is a whole lot better than trying to pick a bottom.

    As to the timing on when such a bottom may occur? It could well
    be years from now, and that should be a realization in your personal
    strategy. It could happen sooner, and most likely as a "surprise
    event," where the prices of gold and silver will take off in a manner
    that will defy belief. It can be anything in between. Laws may be
    instituted making the purchase of gold and silver akin to an "act of
    terror" against the government. No one knows how and when events
    will develop, and that is the point.

    There is no right answer. You cannot control what others do,
    especially those in power. You can control what you do. Just keep
    buying, regardless of price, because if/when the price of gold and
    silver were to go lower, you may not be able to buy. If/when the price
    of gold and silver were to go higher, it may be at such an accelerated
    rate that any price in the past few years may seem cheap.

    Ask yourself, how good are you at outperforming the market? Then,
    act accordingly. Both gold and silver are now in confirmed
    downtrends. It takes time to turn around a trend, and nothing will
    happen otherwise until we see evidence that buyers are gaining
    control, which certainly is not the case.

    April's wide range with a close in the middle may contain price behavior within it for the next several months. If the range does not capture
    price for a while, any break is likely to be lower.

    GCA M 3 May 13

    The down channel is often a good barometer for how price may react
    at each line. Price held the lower channel, even with the onslaught
    on naked short selling of unprecedented amounts of gold that was
    impossible to deliver, which was not the intent, anyway.

    You can see how price rallies, since October 2012, became weaker and weaker, unable to approach the upper channel line. Use that as a
    measure to see how subsequent attempts to rally compare. Keep in
    mind, weak rallies lead to lower prices. Last week's small range was
    not a sign of strength. Be wary of any rally ability to sustain itself.

    We could see a reaction rally in the weeks ahead. If the ranges are
    small and volume declines, signs of a lack of demand, it can be a
    short-term selling opportunity in futures.

    GFCA W 3 May 13

    The monthly silver chart does not reflect what could be viewed as
    ending action for the decline. If/as price rallies, it may be more of a
    futures selling opportunity than a sign of recovery. As the structure
    stands, odds favor lower price attempts.

    SIA M 3 May 13

    The chart comment speaks for itself. Depending on how price rallies
    back to the 26 area, it may be a clearer sign for shorting activity over
    the near term. The potential for shorting the market is for futures only and unrelated to one's plan for buying physical gold/silver.

    SIA W 3 May 13

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