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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 - Cognitive Disconnect Between Physical And Paper 0 comments
    Nov 9, 2013 3:11 AM

    Saturday 9 November 2013

    When one understands the widely pervasive but narrowly understood
    phenomenon of cognitive dissonance that permeates most of the
    Western world, it is not so difficult to put into context the disparity
    between demand for physical gold and silver and supply for the faux
    paper market. There is a growing sense for many that everything in
    the financial world is out of line, and way out of line for many others.

    Cognitive dissonance: an inner need to maintain harmony in one's
    attitudes and beliefs
    while avoiding disharmony, [dissonance]. When a
    conflict arises that produces a sense
    of inner discomfort about one's
    beliefs or attitudes over something that promotes an alteration of
    those same beliefs and attitudes, there is a driving need to restore

    the inner balance or calm. In other words, it is easier to go along in
    order to get along.

    This inability to reconcile gross inequities brought about by the world's
    central bankers; outright theft from events like MF Global, "bail-ins" for bank account holders being held [hostage] responsible for the failed
    financial activities of the bankers themselves, which is just another
    form of theft; and the most insidious form of theft, confiscation of
    wealth via fiat-issued currencies, creating inflation and destroying
    capital.

    Despite this recent and brazen form of theft from people's bank
    accounts, the money on deposit in banks continues to rise, begging to
    be stolen by the bankers, [and they will steal it, count on it]. It would seem these kinds of situations would cause people to close out
    brokerage accounts and bank accounts, but it is not happening.

    Detroit's pensioners may be lucky to receive 16 cents for the dollar of
    what they expected to collect, and every state is grossly underfunded for public pensions. When pensioners get hit across the country, it will be viewed like a Black Swan event: "Who could have seen it
    coming?" Thank the politicians who keep raising the debt ceiling,
    allowing government to shut down, and then raise the [nonexistent]
    "ceiling" and resume spending with abandon.

    There is the blatant manipulation of the gold and silver markets
    themselves, with so many PMs experts calling for higher prices that
    refuse to show up, for a reason. The cognitive dissonance aspect to
    gold and silver and their disconnect between demand for the physical
    and supply for the paper, with paper prices prevailing, is the refusal for those outside the banking system, [governments being a puppet
    subset of the central bankers], to recognize central banking for the
    criminal enterprise that it is.

    How can the insatiable appetite for the physical metal be subservient
    to the corrupt LBMA and COMEX? There is a war going on, one that
    has already been lost by the West to a yet to be declared victorious
    East/BRICS. The Western central banking system is choking on the
    fiat of its own making, force-feeding their same fiat down the debt-
    ridden throats of lesser countries like Cyprus, Greece, Ireland, et al.

    Then there has been the theft of gold from Libya, once Gaddafi was
    disposed of, and from Somalia, to help satisfy Germany's demand for
    the return of its gold. There are reports of allocated gold accounts
    that no longer have the gold, stolen from the account holders who
    fear going public for a variety of reasons.

    The Obama regime, led by a Nobel Peace Prize recipient, the leading
    advocate for war for any [false] reason, was stopped cold by Russia,
    and in the process, the US was abandoned by its partner in crime, UK.
    This happened, most likely, because Russia reminded the UK from
    where its source for winter heating fuel comes.

    The West is in a relentless state of decline matched by the increasing
    rise in status and power of the East/BRICS nations, with gold being the ultimate trump card. China is by far the largest buyer of gold on the
    market. Do you think it has any interest in seeing the price of gold go
    to $2,000, or higher? As a huge buyer, China has a vested interest in
    seeing the price of gold where it is, not caring if it continues lower,
    which is even better.

    If gold were to go higher, it exposes the largest Ponzi scheme ever,
    conducted by the world's central bankers who are left with empty gold vaults, and who would have to accept the collapse of Western fiat
    currencies. Evidence of this comes from the sale of J P Morgan's
    Morgan Guarantee Company building, housing the world's largest
    gold vault, able to withstand an earthquake, for a relatively cheap
    $725 million. The buyer? China. The reality and symbolism are rich
    in irony.

    All the news announcements of which country has increased their gold
    buying, how many tonnes of gold does China actually own, record
    sales for gold and silver coins, empty or nearly empty COMEX gold
    holdings, all validate why the price of gold and silver will eventually
    go much higher. However, it has little to no bearing on the price
    of gold, and no impact on Western central bankers and all the
    unelected organizations that rule the Western financial world and
    governments, [Basel, BIS, IMF].

    This is a behind the scenes change of players, literally, on the world's
    stage, and the New World Order elite are doing what they can to fight
    off the inevitable, steal as much as possible before the end arrives,
    and jockey for position, if possible, even as a bit player lording over
    the ashes of another fallen empire, as it were. It will be RIP USA.
    The American people do not see this coming.

    Until that day of reckoning, there are forces not fully understood that
    still exert influence and control on the gold/silver market. For how
    much longer can it last? It is unlikely that it will be measured in
    months, a lower probability factor, but more likely still in years,
    fewer than more, but it is anyone's guess. This Ponzi scheme will go
    on, and on, because it is the largest holders in the Western world who
    maintain control, and they are unopposed in their control.

    All the bullish news that has been reported, month after month, for the past few years has done nothing to change the recent down trend.
    None of the bullish news that will come out next week or next month
    will have any effect, either. People are looking at the wrong measures for a turnaround.

    The best advice always has been and always will be, "Follow the
    money." The Western "money" is imaginary, but few are willing to see
    the financial emperor "is wearing no clothes." Cognitive dissonance
    works in favor of the money changers, and they rely on it. Those who
    choose to hold the fiat will end up with the value of all fiats,
    ultimately.

    Those who choose to follow the true money will continue to buy gold
    and silver. We each are captains of our own ship. Those in control of
    the helm are the buyers and holders of real money. Everyone else is
    sailing on a ship of fools.

    It may be fool-hardy to look at charts of an increasingly minor factor
    on the gold/silver landscape, but we have no way of charting what is
    unseen. If the arrival of the end game creates an overnight several
    hundred-dollar gap up in gold, those who own and continue to buy the physical will be immediate beneficiaries, rewarded for their patience
    and willingness to not get caught in the eventual maelstrom of reality
    coming to the fore.

    It may also be possible to be positioned in futures for a turn in market
    trend before any such upheaval occurs. No one knows how any of this will play out, so for now, best to play whatever opportunity may be
    available from reading current market activity.

    The trend is down, and price continues to show bouts of strong
    selling. That said, the last two weeks had some sizeable daily sell-
    offs, but the net effect has been minimal against the gains of the two-
    week preceding. It takes time for any market to base, in preparation
    for a sustained reversal of trend, and gold may be in that process.

    Price is holding at a band of support. What is absent is ongoing buying that can lift price above the swing high at "A."

    GC W 9 Nov 13

    There was a sharp increase in the level of volume for the last two days on the chart. The closes are on the lower end of the range, and this
    says sellers are in control. What sellers need now is continuation
    lower to take advantage of what appears to be a weakened market.

    How price reacts next week will provide an important clue.

    GCZ D 9 Nov 13

    Silver looks relatively more promising because the decline is holding
    better than gold's.

    SI W 9 Nov 13

    The character of the silver daily is better than that of daily gold. The
    decline from 23 was fast, but the extent of the downside has been
    somewhat muted, bycomparison. There is no reason to buy silver, or
    gold futures, at current levels, for additional downside cannot be ruled
    out.

    SIZ D 9 Nov 13

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