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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 - It Could Get Uglier And Take Longer 0 comments
    May 11, 2013 9:57 AM

    Saturday 11 May 2013

    The realistic general consensus is that the spot prices for gold and
    silver are no longer relevant. Yet, what remains the one price on
    which focus has intensified for each? There simply is no other
    alternative, at present. A distinction is made concerning the
    purchases by China, Russia, India, et al, paying a larger premium
    over spot gold, prior to the sell-off, and prices paid by those
    purchasing single ounce coins or even kilo bars, "the people," as
    it were.

    Purchases made by the tonne, from the countries mentioned, are
    not reported in a way that can be measured, and in fact, those
    purchases are not publicly reported. While the reports of
    unprecedented demand for both gold and silver on a world-wide
    basis in response to the attack on longs, last month, continues, we
    think the New World Order, [NWO], and its vast infrastructure, IMF,
    UN, Basel, central bankers, all governments in the West under its
    control, is not overly concerned about the man-on-the-street
    demand.

    The next chapter has yet to be written. One thing is likely to be
    certain, it will get uglier. Think of the people of Cyprus and how
    they are suffering at the hands of unelected, non-
    representative outsiders, the NWO executioners imposing austerity
    restrictions to pay for the sins of the bankers.

    It used to be the "Golden Rule" was, He who has the gold rules.
    That has been replaced with, He who controls the purse strings
    dictates
    . The shocking reality of the latter will become more
    prevalent, one country at a time. Central bankers will default and
    make it appear the fault of the paper holders. What are you going
    to do about it?!,
    will be their attitude. All the central bankers are
    doing, under the protection of governments, is stalling for time as
    they get their end-game in place. What is that end-game?
    Securing their stranglehold on power over the failing Western
    countries so that they remain in power.

    The golden Ponzi scheme may be unraveling, but do not expect
    China, Russia, India and other countries to put immediate pressure
    on the central bankers. They are far more cunning and patient as
    they smell blood, and they know that in the end, they will extract
    far more from the failing power of the West. The BRICS countries
    are building their own trade relations, cutting out the fiat Federal
    Reserve Note as a world reserve currency. So let the central
    bankers manipulate the price of gold and silver as much as they
    want, for as long as they want. It will simply make it more
    rewarding for the newly rising Eastern powers when the fraud's final
    chapter is written.

    We see this as a Cliff Note version that the general public fails to
    consider and instead, expects a demise of the COMEX and LME as
    the catapulting catalyst for substantially higher gold and silver
    prices. Based upon these questionable expectations, the public will
    not be prepared for what could take a few more years to develop,
    and the potential for yet much lower prices for both gold and silver.
    This certainly is not a blueprint of the future, but a conjecture of
    what could happen, in one form or another. In the end, no one
    knows how this will turn out, other than a strong belief that it will
    get worse before it gets better.

    Gold and silver can become illegal to use in public trade or barter.
    Anyone caught could be branded as a "financial terrorist" as
    governments continue to crack down on any form of opposition to
    their fiat enslaving control. Anyone "caught" with more than "x"
    ounces of gold or silver will have to prove it was legally purchased
    or risk confiscation. War, on a wider scale, cannot be ruled out as
    a "diversion" often used by the NWO ilk. No one knows.

    For all the short-comings of the paper prices reported by the COMEX and what resulting charts, are saying, they will be used until
    something better comes along. Regardless of what the charts
    show, one should continue to buy physical gold and silver, [and
    personally hold it]
    , on a regular basis. Fiat currencies will continue
    to be debased by governments. A failing fiat and falling gold and
    silver prices cannot continue indefinitely, and the fiat will be the
    ultimate loser. Those who continue to hold paper anything, may
    be subject to near total loss.

    Inflation is already guaranteeing losses with the fiat FRN losing 35%
    just on the past decade. Then there is the consideration of being
    "Cyprused" in your bank accounts, stock accounts, futures
    accounts, [MF Global], and pensions. Gold and silver remain the
    best alternatives.

    There is nothing conclusive for initiating a position in the futures in
    either direction. We stated previously that the wide range bar of
    15 April is likely to contain price activity for some time, now into the third week. Price is holding the support channel line, but rally
    attempts have not been strong. It does not mean price cannot go
    higher, next week, but there is no new demand that says to be a
    buyer in futures.

    GCA W 11 May 13

    Friday's close on the daily was under the last 10 days of buying
    effort. No reason to buy. We would like to see a failed rally above
    1500 to be a seller.

    GCM D 11 May 13

    How price responds around a support or resistance is an important
    market clue. Right now, silver cannot rally higher and away from a
    support area, and that suggests support may not hold.

    SIACW 11 May 13

    The daily chart does little to clarify direction, although one has to
    keep in mind that sellers are still in control. The clustering of closes sends a mixed message, as noted on the chart.

    The clearest scenario is the ongoing purchase and accumulation of
    physical gold and silver as a store of value against an increasingly
    uncertain future.

    SIN D 11 Mat 13

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