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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 - Reverse Bubble. Huge Rally When Broken. Note  0 comments
    Nov 30, 2013 1:07 AM

    Saturday 30 November 2013

    Gold and silver are in reverse bubbles, if you will, where price has been both severely distorted and suppressed by central banks, the visible
    tools of the otherwise hidden moneychangers, those on the top of the
    population pyramid who want to control and enslave the entire world in a totalitarian state of existence. Ironically, the best and only hope for the [not so] free world comes from China and Russia. It is a twisted
    world in which we live.

    There are so many pieces to the entire puzzle, and for all the known
    ones, those which are most important are unknown to the great
    majority. All one can do is to continually monitor events and prepare
    accordingly. The best predictor of the future has always been past
    behavior. For centuries, the most reliable preparation has been the
    ownership of gold.

    There is no evidence that it will be any different, this time around. In
    fact, given the gross manipulation of both gold and silver, once this
    artificial reverse bubble bursts, the results will be equally distorted to
    the upside. Where not too long ago, one often heard $5,000 to
    $10,000 the ounce for gold, the numbers have accelerated to as high
    as $50,000 and $500 the ounce for gold and silver, respectively.

    If anyone wants a glimpse into what the future holds for gold and |
    silver, just look at how Bitcoin has rallied to $1,200+!!! Not even two
    weeks ago, it traded at $460, and now, it is almost worth the same as
    an ounce of gold. Without any warrants as to the reliability or
    sustainability of this recent phenomenon, it clearly shows the appetite
    for an uncontrolled [by central banks/governments] alternative to any
    fiat currency. The world is finally waking up to the central banker's
    huge fiat Ponzi scheme.

    Bitcoin is a digital currency, aka a crypto-currency, that has no
    intrinsic value. For now, it is an anonymous e-currency taking the
    world by storm. What seems to be the strongest point for acquiring
    Bitcoin is that it is continually going up in value, and it is momentum,
    not fundamentals, that keeps carrying the day. It runs the risk of
    becoming a Tulipcoin.

    Putting aside whether the novelty of Bitcoin can survive any number
    of stress tests, whichit has not yet had to do, any way possible for
    operating outside of the existing central banking cartel's fiat scheme
    has enormous appeal. We do not see Bitcoin going up in value so
    much as the fiats are eroding in confidence. Where it used to take $400 in fiat Federal Reserve Notes, [FRN] to buy a Bitcoin, it now
    takes over $1,200 FRNs to buy the same coin. This exposes the
    downside to fiats.

    This is the good news for gold and silver holders. Once the
    suppressive manipulation bubble bursts for gold and silver, the number
    of fiats it takes to buy an ounce of gold, [currently about $1,260] and
    an ounce of silver, [ about $20], will rise in value, as in true measured
    value. Bitcoin is the precursor for how reality will immediately set in
    and catapult precious metals that will likely leave Bitcoin in the dust.

    As to why the Western central bankers continue to successfully
    manipulate/suppress gold and silver is open to debate. In large,
    central bankers set and control currencies world-wide, and most
    people are oblivious to the insidious nature of fractional reserve
    banking and the corrupt criminal enterprises that run them. They
    do it because they operate with impunity and get away with it.

    China is becoming an unexpected center stage protagonist for ridding
    the world of the fiat "dollar, once and for all. It has become their
    mission, one in which they will not fail.

    There is a book entitled "The Ugly American," from 1958 and a film in
    1963 that was popular for some time. Its focus was on America's
    inability, even unwillingness to understand foreign cultures, and
    particularly true of the American government. To that can now be
    added another adjective, "The Ugly and Ignorant American." The
    country is filled with a population that remains clueless about its de
    facto
    and bankrupt corporate federal government, and especially its
    own fiat currency.

    China will become the wake-up that will show the world how America
    is, and has been for a few decades, a Third World country living off
    the fumes of a once thriving nation. We hope to address China as the
    likely replacement for both national and monetary superiority, next
    week.

    A look at the charts. There has not been any notable change in the charts since last week. The dramatic rise in Bitcoin is the best
    reminder for all those buying and holding physical gold and silver, for
    whatever length of time and at whatever price, better days are
    assured. It is just a matter of time.

    It could be said that the nine week rally from the June low is being
    corrected by a 13 week decline, which is relatively more labored.
    While a positive, it does nothing to suggest a turnaround, at this point.

    GC W 30 Nov 13

    The noted clustering of closes can take price in either direction. One
    of the advantages of reading developing market activity is that it is
    followed, not led or anticipated in advance. This means we do not
    have to know in advance which direction price will head, in the week
    or more, ahead. Instead, we wait for a concrete signal, and then go
    with prevailing market strength. It is the best way to avoid being on
    the wrong side of any market.

    GC D 30 Nov 13

    Silver's strong August swing high rally has been negated by the much
    slower decline that is now trading under the strong rally bar, 3rd from
    the August swing high. Until the small range of last week, the
    preceding decline, none of the 4 bars overlapped by much, indicative
    of a liquidating market. Whether the small weekly range becomes
    significant, as a potential form of stopping action, remains to be seen.

    SI W 30 Nov

    Price could still go marginally lower and not break the previous zone
    of support. In any down trend, sellers have proven themselves. The
    onus is on buyers to demonstrate the ability to effect change. For
    now, there is no evidence that buyers are stepping in and taking over.
    The ongoing "fate" of precious metals remains in the central bankers
    pockets.

    SI W 30 Nov 13

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