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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 - Talk Of A Bubble Is Nonsense. A Market Not To Be Denied. 2 comments
    Nov 7, 2011 12:09 AM

    Sunday Evening  6 November 2011

     We editorialized about the absurdity of the world government ponzi
    scheme being carried out as the value of currency is fast moving
    from two-ply to one-ply.  [See Silver - Keep Accumulating Physical,
    click on http://bit.ly/sBpZ8M]  There is no need to repeat it here. 
    The same said for silver applies to gold...keep accumulating the
    physical as the best antidote against world events, doomed for disaster.

     The weekly chart is clear, and as a reminder, the higher time frames
    tell a truer story of a developing market.  The trend is THE most
    important consideration for positioning in any market, and the trend
    in gold is clearly up.  The notion of "spacing" exists when the low of a
    then current correction remains above the high of the previous swing
    up.  The low in January 2011 is above the high of June 2010, and
    the low in May 2011 is above the previous high in December 2010. 

     What spacing indicates is that a trending market is strong, strong
    enough that buyers are not waiting for a lower correction, but are
    entering the market.  In short, it is a sign of a healthy bull move. 
    Spacing did not occur in the September 2011 washout.  All that says
    is that the trend was a little weaker, but not over.  To support that
    view, you can see that the highs have been higher and the swing
    lows have been higher, as well, and that is what defines a trend.

     There are NO signs of a bubble, and any mention from uninformed
    sources, be it overpaid talking heads on financial news networks or
    from politically motivated sources can all be discounted.  Gold now
    caters to a huge global community.  India has always been a believer
    in the value of gold, and it has also been a huge buyer, by the tons,
    as a country.  China continues to quietly buy gold at what they see
    as really attractive prices, given how countries are going bankrupt
    and the world central banks' answer to such overwhelming debt is to
    create even more.  That is akin to saying the way to solve the crime
    rate is to create even more crime...give a drug addict more drugs to
    solve the addiction.

     Gold has long been considered a store of value throughout man's
    history, and it ain't going to change this time around.  People familiar
    with gold know this.  Detractors of gold choose to ignore the factual
    past.  Let them accumulate as much paper assets and hold fiat to
    their heart's content.  We all make choices.  To tie this thought to an
    end, the global take on gold and the growing global demand for it,
    ironically, including the central banks that eschew it, will ultimately
    lead to much higher levels, and the market is far, far way from any
    notion of a bubble in the making.

     If there is a bubble to be found, it is in the output of the central banks
    creating more and more imaginary "money." 

     We are of the mind that charts can be misleading, for now, due to
    the poiticalization of them and the currency markets, and volume is
    unreliable as a consequence.  There was a small upside breakout
    in price, three weeks ago, once gold rallied back over 1700.

     GCZ W 6 Nov 11

     Breaks are being bought, evidenced by the ensuing rallies that do
    not allow price to linger long at lower levels, as when 1600 was
    reached in mid-October, followed by a fast rally, and another rally
    after a  correction to the 1700 level at the beginning of November. 
    That makes it a support level, once again.

     Anything can happen in the futures market, more so for silver
    than for gold, and that is why we continue to advocate purchasing
    physical gold as a wealth builder, and not just a hedge against
    inevitable inflation. This market will not be denied.  It is a matter of
    time, next month, next year?  What matters is being long, a month
    or a year too early rather than a day too late.  Evidence proves this
    train has already left the proverbial station and is moving.

     

    GCZ D 6 Nov 11

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Comments (2)
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  • Looking to find out about an investment company ozsgold.com
    the site claims that Oswald Pelaez guarantees that our futures will be guarantied by his ventures. What is his tract record? Is he on the up & up or is he another Burnie Madoff? We sure can't afford to be ripped off, we are starting to get along in age soon.
    Thanks for your help.
    20 Jun 2012, 04:24 PM Reply Like
  • Author’s reply » Sunday 24 January 2012

     

    No one can guarantee anything in any market. That is your first red flag. Do a simple google search, and there is scant information on the name, another red flag. Enter the url and there does not appear to be any web site.

     

    Need more be said?
    24 Jun 2012, 11:26 AM Reply Like
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