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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 - The End Is Near; Just Not In Sight. 0 comments
    Jun 22, 2013 1:47 PM

    Saturday 22 June 2013

    Whatever expectation[s] you may have, expect the unexpected
    and unlike what you may expect. So far, that has been playing out
    quite nicely, and one of our expectations is that it will continue to
    unfold in the same manner, and to the ongoing surprise of most.

    "Gold will be at/above $2,000 by the end of the year."

    "Gold will reach $3,000 [$5,000, $10,000, etc] and silver $100, [$250,
    $500, etc]"

    "The central bankers are [just about] out of gold." [The cupboards are likely bare.]

    What is wrong with this picture?

    Not one Precious Metals guru has gotten anything right in the last 18 months. All have been calling for considerably higher prices. Over the past several months none called for sub-$1,300 gold and sub-$20
    silver. Many have extensive research staffs and reams of
    statistics to substantiate any and all claims asserted, [for higher price
    levels].

    Lesson: Crystal balls do not work and never have, plus, when it comes to markets, Anything Can Happen!

    We have expressed sentiments, [but not timing], with the eventual
    higher prices, and have advocated the ongoing purchase of physical
    gold and silver,
    and only to be held personally. If you do not hold it,
    you [most likely] do not own it. You will get back paper, instead.
    For the most part, we have maintained not to buy the paper futures
    because the charts say do not be long, plain and simple.

    [As an aside, we are on record stating we have been buyers of the
    physical even at +$1,800 gold and +$40 silver. Would we like to have bought it cheaper? That has never been a consideration, in hindsight,
    nor is it of concern at current low prices. Our reasons for buying and
    holding, and also recommending same for silver and gold supersede
    its price. Keep buying, we say.

    Gold and silver are wealth preservers and wealth creators, from out
    perspective, and that is the sole purpose for accumulating the
    physical, at any price, as we have been stating. Why recommend
    buying the physical when its price has been dropping steadily? At |
    some point, you either will not e able to buy it at prices under $1,900 and $50, respectively, or the government may [likely] intervene and
    make it near impossible to buy without having to submit to close
    scrutiny/registration, maybe even make it illegal.

    The United States becomes more and more financially isolated by the
    rest of the world. China, Russia, India, and many other countries are
    waiting for the US to crumble from within, as it has been for decades,
    by design, [Rothschilds, New World Order, illuminati, Bilderbergers, etc, take your choice. It has happened].

    Those still in power will do everything they can to maintain it. In the
    process, they will destroy the economy [already in process], civil
    liberties, [just control remains as a major obstacle], the means of
    earning a living, [yet an other one, food stamp recipients at all time
    highs, Medicare usage through the roof]. It will get ugly, especially
    for those less prepared, like those who chose not to buy gold or silver
    at any price when they could.

    Here are a few other considerations:

    Government confiscation - Not very likely. A replay of the 1933
    Roosevelt Executive Order scam makes little sense. Back in the |
    1930s, much of the public owned gold and silver as a form of money,
    which it was, then. Today, how many households actually own and
    hold gold and/or silver? 1%? 2%? Whatever the number, it is small.
    People since have been "dumbed down" about owning gold and silver,
    for it is no longer a part of currency, fiat or otherwise. Even if there were some attempted form of confiscation, those who do own and hold PMs are not [as] susceptible to government-sanctioned theft.

    Devaluation - This one could catch a lot of people off guard. Most
    Americans think it only happens in poor, or debt-ridden countries,
    [Hello!] Welcome to the Third World America. The illuminati have long
    had plans to enslave this country, and it is almost a fait accompli.
    20%? 50%? Again, no one knows, but odds are heavily in favor of
    devaluation. A huge reason for accumulating PMs, [at any price].

    Government Bail-ins, and/or confiscation of a different kind. Was
    Cyprus a template? Absolutely, and not by accident. Nothing,
    absolutely nothing happens in the banking world that has not been
    sanctioned, not by just the central banks, but by the controller of
    ALL central banks, the Bank of International Settlement, [BIS]. This
    is where the head of the illuminati rule, unseen, unaccounted for, but
    they measure every "dollar" they deem you should be "earning" for your slave labor. The BIS is the Rothschild formula in action. Lend out fiat,
    demand actual assets in return payment.

    M F Global was a form of [uncontested] confiscation. Printing fit-to-
    infinity is one of the most insidious forms of confiscation, via inflation,
    [since 1913 when the Federal Reserve Act came into being, and the
    NWO took power of this country's money supply.

    "Give me control over a nation's money supply and I care not who
    makes the laws." Mayer Amschel Rothschild.
    Give the man credit, he
    did warn everyone in advance.

    Another potential form of government confiscation will be forcing public pensions, for sure, and eventually all forms of retirement accounts to
    buy [worthless] government bonds.

    Civil war, [government induced], social upheaval, revolution. These
    are the more extreme forms of what can happen that will impact the
    [worthless] "value" of fiat.

    Whatever the reason[s], it does not matter. What does matter is that you have PMs and that you continue to buy them because the end is
    near. What no one knows is when or how it all will end. What seems
    to be truer than not is what we expressed in the opening, whatever
    your expectations, they will probably fall short.

    There is increasing recognition and discussion about PMs decoupling of prices from the [diminishing faith in] COMEX and LBMA, and how paper
    prices are a joke relative to actual demand for the physical. We noted in a previous commentary that despite that recognition, the paper
    exchanges are still in "control" [at least for now] of PM pricing. We see nothing in the charts that suggests otherwise, yet, so here they are,
    just for drill, and reference.

    Chart comments show monthly price is in an oversold condition,
    [oversold can easily become more oversold], and at a 50% of range
    possible support. One does not use the monthly for timing, but for
    context.

    GCA M 22 Jun 13

    Important support was broken in the 1535 area. The dashed portion of that horizontal line represents the future, and on a retest, it can offer
    significant resistance. It depends upon price activity leading up to it,
    at the time.

    GCA W 22 Jun 132

    Despite the monthly chart showing potential support, neither the
    weekly nor the daily show anything similar. We see no ending action,
    suggesting a selling climax or even a cause for a reaction rally. It may happen next week, but all one can judge is what is on the chart in the
    present tense.

    Remember, we are talking about futures showing no reason to be long.
    There are so many reasons to be long the physical. The two are
    distinct, although the former still has an influence on the latter,
    however one chooses to believe about the credibility of COMEX.

    GCQ D 22 Jun 13

    No matter how many reasons one can give for saying the end is near,
    the charts are not supportive of the demand everyone recognizes for the physical. The takeaway on this is how influential are the
    [increasingly desperate] central banking controlling forces. They
    remain adamantly in control.

    SIA M 22 Jun 13

    Last week's simple observation of how weak silver looks has not
    changed.

    SIA W 22 Jun 13

    The same is true for the daily. Thursday was a wide range bar down
    on sharply higher volume; the market telling us sellers are in control.
    Friday, last bar, was a weak response.

    SIN D 22 Jun 13

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