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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 - Do You Prefer Fundamental Tale Or Technical Reality? 0 comments
    Sep 15, 2013 10:52 AM | about stocks: GOLD

    Saturday 14 September 2013

    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 byexceptional 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?

    GCZ 60m 16 Sep 13

    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.

    SIZ 60m 16 Sep 13

    Themes: Gold, Silver, Precious Metals Stocks: GOLD
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