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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 - There Are Reasons Greater Than Demand For Owning Them. 0 comments
    Jan 11, 2014 10:28 PM

    Saturday 11 January 2014

    Here is some very cogent rationale for owning gold and silver. None
    pertain to the ever-ending reasons that demonstrate great demand. Everyone has been hearing about them in a steady stream
    for the past year, and the impact on the market has been nil. Often
    in tandem with the latest news, like record coin sales from...[pick a
    mint or country], is the lament from PM holders on where the current
    price of gold is, at lows for the past two + years, making many question the validity of owning PMs.

    For any self-doubters, especially those who paid for their PMs at 50% to 100% higher in the past year or two, by example, we still hold some
    gold purchased at $1800 the ounce, some silver at $48 the ounce. That
    just happened to be where gold and silver were at the time. We were
    engaged on a consistent plan of purchasing, regardless of price. There
    were specific reasons for wanting to own physical gold and silver, and
    none of those reasons have changed. In fact, they have increased.

    We now live in a financially insane world. The government tells
    everyone that 2 + 2 = 5, consistently, and people continue accept the
    lies. If you listen to the government and the bought-and-paid-for
    mainstream media, all is well in this country, when in reality, we are
    dealing with recession, inflation, joblessness, and general instability.

    The biggest problem is debt. Actually, it is the core issue. Bury people and countries in debt, and demand their hard assets as payment in
    return, aka the Rothschild formula, in use for hundreds of years. The
    debt burden is now so onerous that it is becoming almost impossible to
    keep under control. The elites are so skilled at getting their false
    message out, through governments, that people are more than willing
    to believe the lies.

    Greece was a warning shot for the rest of what passes as a [not so]
    free world. The message? It is mathematically impossible to sustain
    the growing debt burden in any given country with no ability to ever
    pay it back. The United States has become a welfare state for too
    many of its citizens. The largest growth sector in this country is the
    federal government. The government produces nothing. Everything
    it spends has to come from the people, or increased borrowing. It is
    a tapeworm consuming its host

    The Fed has kept the stock market propped up by tapered window
    dressing. Interest rates are artificially being held low to enable the
    government and all the banks to keep the debt Ponzi scheme on life-
    support, which ultimately leads to death, financially.

    Zero rates means keeping the accumulating interest costs of
    government lower. Allowing rates to rise to a more normal 3% - 5%
    would collapse the federal government and all of the insolvent banks
    which are responsible for every financial problem everyone now faces,
    except the privileged 1%.

    No one in the past 100 years, since the Federal Reserve Act was passed and the privately owned Federal Reserve bank usurped the organic
    Constitution and took over issuing this nation's money, has done
    anything to abolish the Fed.

    "Give me control of a nation's money, and I care not who makes the
    laws."

    -Mayer Amschel Rothschild

    It really is not hard to connect the dots if one truly wants to do so. The information is out there, but few are willing to seek out the truth, and
    instead, prefer dwelling in the [dis]comfort of debt-laden lives.

    There was one person who tried to make a difference: John F Kennedy, when he decided to print billions of silver-backed dollar certificates.
    The world knows that Kennedy was assassinated and replaced by
    Lyndon Baines Johnson. One of Johnson's first official acts, within days
    of being sworn in, was to rescind Kennedy's order to issue the silver-
    backed certificates. The elites have their priorities, and puppet
    presidents must do their bidding.

    Why aren't politicians doing everything possible to get rid of the legal
    [but not lawful] privately owned Federal Reserve Banking system that
    charges the government interest on the purely fiat money the Fed
    issues? Very few people in this country wonder why the U S
    government does not issue its own currency, [as it did prior to the
    Federal Reserve Act of 1913], and not have to pay interest on the
    currency issued.
    One of the largest expenses is the federal government is the debt owned to a foreign entity that controls this country's own
    money. Federal Reserve Notes are not money. They are debt
    instruments. Debt can never be money. Dwell on that thought for a while.

    The elites use the Federal Reserve to entirely control the government
    and used FDR to ban gold ownership in 1933. Previously, gold and
    silver were used exclusively in backing United States Notes and gold
    and silver coins issued by the U S Treasury. Since 1933, gold has been
    absent from the public arena, and 1963 for silver. So many in this
    country are unaware of the important role gold and silver have played.

    Prior to 1933, people used gold and silver in all ways of their daily
    lives. No one used credit cards, and people had no need for socialist
    government services. This is why the elites had gold and silver
    removed from circulation as money. It was accomplished over decades, by design, so people would not notice the change and gradually accept
    the substituted Federal Reserve Note system.

    United States issued Treasury Notes, backed by gold and silver, were
    allowed to circulate along side Federal Reserve Notes, [debt
    instruments], and people began to equate the two as th same. At that
    point, the Federal Reserve began withdrawing all US Treasury Notes
    and had them destroyed.

    You do not need more statistics about the current shortage of gold and
    silver, or more citing on the number of tonnes of gold China continues
    to import. That information has been of little practical use. What you
    need to know is the kind of factual history we just briefly presented in
    order to know that it is incumbent upon your future to take whatever
    measures necessary for surviving the financial time bomb waiting to
    explode.

    It is not important to know what others are doing, but it is critically
    important to know what others are doing to you, and what you are
    going to do for yourself and your family. It is a proven historical fact
    that every fiat system has failed, utterly. The U S is in that process,
    right now.

    The actions of the government will be your first signs of imminent
    collapse. Anyone who chooses to keep money in the banking system
    is fodder for the banking whores. They will steal your money. It is a
    known fact that all money you deposit into the banking system
    becomes their money, and you, by banking laws, become an unsecured creditor.

    The government will raid private pensions, like Hungary and Poland
    have done. Your pension will likely become nationalized, and you may
    receive a 10 year government bond in return for whatever money you
    have saved. It happened in Argentina just a decade ago. There is
    ample evidence throughout the world of what a government will do to
    survive, at your expense.

    You want a reason to own gold and silver instead of anything paper-
    issued? Forget about statistics and the demand side of the equation.
    All of the events discussed here, and worse, are on the agenda of the
    elites to gain world control over everyone. Without gold and/or silver,
    it will be almost impossible to survive what is to come. No one knows
    when, but when it does, and it is a historical certainty, are you really
    going to care what you paid for your gold and silver?

    We all have choices to make, and we all deal with the consequences of
    these choices. Do not worry if you paid a high price for your gold and
    silver. You do not intend to sell it, so any loss is imagined. Stay true
    to what history has proven. No one knows when the collapse will be
    realized, but one has to continue to prepare for the inevitable in a world
    that makes no sense, financially.

    We were interviewed on this topic, last week, and the audio can be
    found on our site, edgetraderplus.com, under the category "Interview,"
    for anyone interested.

    The charts may be closer to showing signs of bottoming. Here is our
    current read.

    Bearish spacing develops when a low is broken, last April, and the next
    rally swing high, August, fails to reach and retest the previous swing
    low, leaving a space. It indicates a weak market.

    There was a strong rally on Friday, but when seen on the weekly chart,
    the results are less impressive. That observation is amplified when you
    compare the last two bar ranges and respective volume. The second
    bar from the end shows ease of upward movement by a wide range and strong close with volume greater than the previous day.

    On Friday, volume increased sharply compared to day 2, yet the price
    bar range narrowed. Increased effort, volume, yielded less results, a
    smaller range. The reason why the range narrowed was due to sellers
    meeting the increased effort of buyers and preventing the price range
    from extending higher.

    You can expect to see this kind of activity in a down trend where sellers have been in control. From a weekly chart perspective, gold continues
    to struggle, even with a strong rally effort on Friday. This is the way to
    read the "message" of developing market activity.

    GC W 11 Jan 14

    Friday's rally stopped at a minor resistance area, [thin horizontal line].
    Continuation to the upside would be expected on Monday. We will now
    begin to see if gold can develop a sustained upside rally and begin to
    change the trend, from down to at least sideways.

    GC D 11 Jan 14

    The last time silver spent 8 weeks in a TR, June - August, the 9th week
    was a strong rally. There are now 8 weeks completed in the current
    TR, and Monday starts week 9. The last three weeks have a close
    clustering of closes. This reflects balance between sellers and buyers,
    and from balance comes unbalance.

    All three of the last closes are upper range, indicating buyers won the
    battle each week, and it would indicate that buyers are absorbing the
    effort of sellers prior to moving higher. That is the probability read, but the market always has the final say.

    SI W 11 Jan 14

    The daily does not have a similar positive read as the weekly, and as
    we noted on the chart, the increased volume, last bar, did not quite
    generate as wide a price range as occurred 6 bars earlier. Price is still
    within the established TR, moving farther along the Right Hand Side,
    where resolve takes price out of the TR.

    For the moment, momentum is on the buy side.

    The futures still have issues, and one cannot buy into rallies in a down trend. The physical gold and silver metals also have issues, but the
    resolve is going to eventually lead to an explosive upside. Continue to
    buy the physical. These are great prices.

    SI D 11 Jan 14

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