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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 - Bankers Can [Will] Steal Your Cash But Cannot Take Your Gold/Silver 0 comments
    Feb 16, 2014 8:28 PM

    Saturday 15 February 2014

    Bankers can and will steal your cash, but there is no way they can
    take your personally owned and personally held gold and silver. The
    ongoing plan for 2014 is to buy and hold even more gold and silver
    and reduce your exposure to cash held in any bank. Just keep
    enough to cover week by week expenses, and keep the rest of your
    cash at home, under the mattress, in a safe, buried in the backyard,
    anywhere but in a bank.

    ANYONE who keeps money in any banking system in the Western
    world is sending an RSVP to bankers to access your funds, and they
    will not disappoint. The confiscation of Cyprus banking accounts was
    bandied about as a template for other countries. "No, that would
    never happen," was a constant refrain. Well, it was just the

    If there is one thing about which you can be certain, concerning cash
    held on deposit, the government, [pick a country], has plans to steal
    it. The bankers new motto: "What's yours is ours."

    You think Cyprus was a single event? It was an elite trial balloon.
    The blowback from it? Not much, really. Financial shock and awe,
    to be sure, especially for Cypriots, but just like every other banker-
    created scam, there are no real consequences. The elites carefully
    monitored world response and learned one thing: more of the same,
    in some fashion or similar form will work, and we
    [the bankers] will
    get away with it.

    Another example: Read this excerpt from the IMF October
    publication "Taxing Times" which states on page 49: A One Off
    Capital Levy

    The sharp deterioration of the public finances in many countries
    has revived interest in a "capital levy"- a one-off tax on private
    wealth-as an exceptional measure to restore debt
    sustainability. The appeal is that such a tax, if it is implemented
    before avoidance is possible and there is a belief that it will
    never be repeated, does not distort behavior (and may be seen
    by some as fair).

    The cunning and planning goes on behind closed doors on an ongoing
    basis. Then there was this article from Reuters: EU Executive See
    Personal Savings Used To Plug Gap

    "the savings of the European Union's 500 million citizens
    could be used to fund long-term investments to boost the
    economy and help plug the gap left by banks since the
    financial crisis,
    an EU document says.

    In other words, all of the trillions of $$$ used to prop up every single insolvent bank in the Western world has failed to boost any
    economy, and the reason why it has failed is because the bankers
    are keeping the money for themselves, not lending it out. Every
    economy is being starved of capital.

    The solution? "The Commission will ask the bloc's insurance
    watchdog in the second half of this year for advice on a possible draft law "to mobilize more personal pension savings for long-term
    ", the document said."

    Doesn't that sound economically viable?! It is EU doublespeak: to
    mobilize more personal savings,
    in normal words means "confiscate,"
    or more to the point, "steal." The central planners never stop
    planning, and your savings and deposits are in their crosshairs.

    The bankers are not stopping there, however. The ultimate goal? All
    pensions, IRAs, 401ks, whatever form your retirement funds are in
    will be switched, for your own good, of course, to the safety and
    guaranteed security of government bonds. You will be assured of a
    few percentage points of interest. What, 1, 2, 3 percent? With
    inflation running at 8 to 10 percent, minimum, at least in the real
    world? Such a deal.

    Obama has introduced the MyRA account, and just like Obamacare,
    it is for the "benefit" of the public good. It is the prelude for
    eventually taking over the country's entire pension programs, taking
    over all the accounts, [stealing your lifetime savings], and
    exchanging them for the US Treasury Bonds the Fed cannot sell to
    countries anymore. This is the only way the US government can
    cover its trillion $ [and growing] deficit spending.

    What is wrong with this picture?

    Who elected the bankers? Who elected the EU members that run
    Europe like their own ATM? They all are empowered by the elite
    shadow rulers. What is worse, people are not rebelling. Instead, all
    acquiesce to the whims of the central bankers.

    "All" is close but not quite accurate. There are the relatively few who
    own and hold silver and gold, immune, to that extent, from the theft
    of banking funds/pension funds/ mutual funds/corporate and
    government bonds, any form of paper thought to have value.

    Rest assured that those who impose [steal] "special situations" are
    exempt themselves. All of your hard-earned money and life savings
    are needed to prop up the insolvent banks, pay for all the banker
    bonuses and lavish lifestyles, because the bankers will never be held
    accountable to the financial problems they created, and you must
    now pay for their mistakes for no bankers are ever held accountable, just you and your neighbors.

    We are all free to make choices. From what we can determine,
    financially smart people own and personally hold, and continue to
    buy gold and silver, the most durable "wealth" preserver of all. The
    word "wealth" is used for lack of a better choice in the asset class
    of precious metals. There has been no wealth preservation owning
    gold and silver for the past few years, stated and acknowledged.
    However, that is a very short time frame from which to measure.

    The choice is simple: paper or hard assets? Owning gold or silver
    ETFs or futures are paper and not a claim on the physical. Accept
    no substitutes. For those who choose to remain within the banking system, the risks are known, and if accepted for what the central
    bankers are planning, made public by the way, there can be no
    complaining when funds are lost.

    The charts remain the most viable way of keeping a pulse on the
    price of gold and the gold price. Some make a distinction, but the
    effect has been of no consequence from a pragmatic point of view.
    Our weekly charts and assessment follow:

    As a reminder, the charts are in contradistinction to physical gold and silver. Everyone should be buying physical gold and silver as often as possible, and price is not the most important issue, owning it is. The
    charts reference the paper form of gold and silver, but they relate to
    the price of the physical, by extension, as a general guide.

    The past two weeks have been the best for gold in several months.
    We maintain the belief that extraordinarily higher prices for gold and
    silver are not going to happen, in the near term. Maybe sometime in
    2014, it is too soon to tell. What is more important are the events
    like those discussed above that are setting the stage for eventual
    higher prices.

    What should be of primary concern for buyers of the physical is the
    availability. It may not always be readily available, as it is now, and
    that should be a driving motivation for their acquisition. For those
    who already own PMs, particularly at higher prices, do not fret.
    Their value will go back to levels paid, and much higher. Just be
    patient. It is short-sighted to measure one's holdings based on price as opposed to the reason for buying them in the first place.

    If you do not complain about paying for car or house insurance that
    does not get used, why complain about PM holdings from higher
    prices? Stay focused. Events are unfolding in an alarming manner,
    and people should be very worried about what is going to happen.
    Look at Cyprus, Greece, Venezuela, Ukraine to get an idea of how
    ugly things can, and will get.

    The weekly chart shows the current down trend weakening but not
    ending. As is pointed out in the weekly silver chart, one only need
    look at the rally that began in June, 2013. If anyone thought the
    breaking of a TL [Trend Line] meant the end of a bear market, look
    again. It takes time for a trend to change, and with the exception of
    a "V-Bottom," there are a few phases that mark trend changes.

    The Bearish Spacing still stands out for what could be formidable
    resistance, yet to be determined. As a reminder, bearish spacing
    exists when the last swing high, August 2013, fails to reach the lows
    of the last swing low, May 2012. It indicates sellers did not feel the
    need to see how the swing low would be retested. They aggressively
    embarked upon their selling campaign certain that lower prices were

    The August swing high will be defended by those who sold at that
    level, which will make it resistance. There is a relatively smaller
    resistance level, marked on the chart, at 1360.4, a smaller swing
    high. How the market responds to the known resistance levels will
    give an indication of the character of the existing trend.

    GC W 15 Feb 14

    The daily trend is up, as defined by a two higher highs with a higher
    low in between. Once price rallied above 1280, it formed a higher
    high and confirmed a change in trend on the daily. Once that was
    confirmed, it was then easier to put the previous market activity
    into a context that supported the change in trend. Sometimes,
    recognizing changes can only be determined in hindsight.

    The two wide range bars, with arrows under each, anchored the rally in gold. There was no way to know beforehand that gold would make higher daily lows for 10 days straight, and that left no [normal]
    reaction in which to buy. This is a decided change in market
    behavior, and if sustained, will continue building on the up trend just
    under way.

    The primary resistance at 1360 is the same on the daily and weekly,
    giving greater weight to the daily chart. A lesser, potential resistance level is also shown by the dashed line from a failed retest rally,
    marked on the chart.

    Money is not made buying potential resistance, which the 1280 area
    represented, and for that reason, we were not buyers and missed
    the last half of the rally. We did catch some of the earlier portion of
    it, however.

    What we know for certain is that every market will have a normal
    correction, and it is at that point one can take a position with a more
    clearly defined risk. For now, we remain on the sidelines in the paper futures.

    GC D 15 Feb 14

    Pointing out the importance of not jumping to any conclusion that last week's strong rally has change the trend, a look back at the first
    arrow shows an earlier strong rally that did not change the trend.
    Everything needs to be confirmed, and the rally from the first arrow
    was never confirmed as a change in trend. Patience is a virtue in the

    SI W 15 Feb 14

    Friday's rally in silver was impressive, coming out of the protracted
    TR, [Trading Range]. When you measure from point "A" to point "B,"
    that "stored energy" accumulated during the trading range reveals
    that the upside rally potential can carry silver to the 25 area, and
    even challenge the all important 26 resistance.

    Silver also has bearish spacing, shown on the weekly chart, but it is
    not as great as the gold bearish spacing. There is a good possibility
    that silver can outperform gold, on the next important rally.

    The "D/S" designated Demand overcoming Supply, and the sharp
    volume increase is very supportive of the rally. A great place to get
    long is on the retest of the breakout, and we will be watching how
    the next retest unfolds.

    SI D 15 Feb 14

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