Saturday 29 March 2014
Almost all who read our commentaries know that we place the
greatest importance on reading the developing market activity, as
best seen in charts, in order to have the closest pulse on what is
going on in the market[s]. The reason is because the activity found
in price and volume behavior reflects the decisions of all market
Smart money leads, the rest follow. What constitutes smart
money? Those with the most knowledge and deepest pockets that
control what goes on. In the US stock market, it used to be
institutional money that drove stocks. For the past few years, it has been the Federal Reserve, through Permanent Open Market
Operations, [POMO], and the all of the QEs that have unsustainably propped up stocks.
In the Precious Metals, [PM], it has been the US and London central banks colluding to suppress primarily gold but also the silver
market, and with gold, the active suppression has been going on
for at least the last 50 years, just more blatantly in the past few. It
is for these reasons we have turned our focus toward the elites, all
related to the Rothschild dynasty, because they control all of the
money. All Western money is worthless fiat, but for as long as the
masses continue to believe the "emperor is wearing clothes," the elites rely on people turning a blind eye and will get by with their
massive Ponzi scheme.
Let us be clear about one thing, and the most important of all to
never forget: gold and silver are money, and the truest form
of money. Everything else, the fiat Federal Reserve Note,
erroneously referred to as the "dollar," the Euro, the Yen, the Swiss Franc, and every other Western form of what passes for a country's currency is worthless paper money, backed by nothing but more
worthless paper money. Actually, it is not even paper anymore.
Almost all fiat currencies are digitalized, paper being a small
If you ask most people if they know that fiat currency has no value, they will agree. Yet, those very same people continue to use the
intrinsically worthless paper as though it actually had value! In
other words, people are willing to imagine the worthless fiat has
the [lack of]value the issuing central bank says it does. The kicker
is, everyone who uses fiat-with-no-intrinsic-value is a smart
Can anyone explain to their 8-year-old son or daughter what fiat
Parent: "It is paper money used to buy and sell goods and services,
but it is not really worth anything."
Son/Daughter: "If it is not worth anything, why use it, and why do
other people accept it?"
We cannot justify a worthwhile response without it begging the
question, "If everybody else jumped off a cliff, would you, too?"
Parent: "Where is your new bicycle?"
Son/Daughter: "I sold it for $100. See! This man gave me a piece
of paper and wrote $100 on it."
Parent: "Are you crazy! Just because someone tells you a piece of
paper is worth $100 does not make it true."
This would be a good time to stay away from a mirror.
Living in America, prior to the 1930s, if you went into a bank with a US Treasury Note of any denomination, you could exchange it for
gold or silver, for all currency was specie-backed, even the Federal
Reserve issue, which circulated side-by-side with US Treasury
Notes, [those issued by the US government and not the private
corporation known as the Federal Reserve].
After the elites forced the US into bankruptcy in 1933, when FDR
declared a bank holiday and shut the system down for several
days, when the banks reopened, it was the foreign-owned Federal
Reserve that was in charge of the entire banking system, finally.
[We add "finally," because that was the objective of the Rothschilds for over 50 years even before 1933, actually longer, but it gets too
complicated to explain.]
A man goes into a bank, prior to 1933, and hands over a $100 US
Treasury Note, or even a Federal Reserve Note, which also was
specie-backed, at the time, and asks for $50 in gold and $50 in
silver. No problem.
Sometime after 1933, a man goes into a bank with a $100 Federal
Reserve Note and asks for $50 in gold and $50 in silver.
Banker: "Sorry, sir. There is no gold or silver backing for your
$100. Would you like two $50 Federal Reserve Notes, instead?"
When the Federal Reserve Act was passed, two days before
Christmas in 1913, when most politicians were home on holiday,
the Act was passed with no opposition by the remaining chosen
politicians who stayed on, and were well paid to do so by the
Rothschild-backed bankers. And so the most treasonous act against the Constitution was passed.
Here is how the rest of the plan was carried out: The Federal
Reserve issued its own currency, also specie-backed, to circulate
along with the US specie-backed Treasury Notes. This went on for
a few decades, which is a short period of time for the Rothschilds.
What happened was, people saw the new Federal Reserve Notes,
along with Treasury Notes, but it made no difference because both
were equally backed by, and could be exchanged for gold and silver on demand, at any bank.
After 1933, when the Federal Reserve took over control of the
money supply, it began to slowly withdraw all US specie-backed
Treasury Notes and had them destroyed! Nobody paid attention to
the disappearance of the US Treasury Notes because Federal
Reserve Notes were the same thing, in their minds, and in reality.
This was all planned, decades in advance. It was a part of the
Rothschild formula for well over a hundred years even before that.
Something else happened very gradually, over time, and almost
immediately after 1933. All Federal Reserve Notes that were
specie-backed were also withdrawn from circulation. All of the US
Treasury currency issued by the United States government had
already been removed and destroyed. All that was left were
Federal Reserve Notes, backed by the full faith and credit of the
United States. Fiat. Again, people had come to accept Federal
Reserve Notes in circulation at the same as Treasury Notes, so
when all that was left were the Federal Reserve Notes, it did not
matter because people could still buy and sell whatever they
wanted and did as in times prior to the financial bait-and-switch.
All the gold and silver owned by the United States government was
stolen, taken by the elite-owned Federal Reserve central bank. The central bank controlled the government and the media. The public
was fed the kind of news that never let on to what happened during those decades, and the public has since been dumbed down even
further in all theother decades to date.
In the 1940s, '50s, and '60s, one often heard the expression, "The
dollar is as good as gold." That was another Rothschild-inspired
idea to implant in the minds of the people, and it worked. Another
popular expression related to the gold stored in Fort Knox. No
one ever talks about Fort Knox, anymore, and hasn't for many
decades. Why not? All the gold is gone, and the elites do not want
to draw attention to what is not there.
Does the US own any gold, at all? Absolutely! But only on paper, if
you believe the paper on which it is written. Has anyone seen any
hard evidence of gold stored at Fort Knox? "Here it is, right here
on this paper."
Can we see the actual physical gold?
"That would be inconvenient, but here it all is, and our ledgers are
audited every year."
Hello, Germany, can you hear us now?
A bit of irony that the same people who hold and control Germany's gold got their start in Frankfort, where the wooden"red shield" sign
used to hang over the door of Mayer Amshel Bauer, he who
changed his last name from Bauer to "Red Sign," or Rotschild.
If a group, not just any group, but one that controls all of the
money in existence in the Western world, and also controls all of
the governments in the Western World, [almost], is it that far a
stretch of one's imagination, [especially for those who believe in
paper fiat], to believe that this group of elites can just as easily
control the price of gold and silver?
They have for many, many decades, and do so to this day. It may
well be that they have had to sell all their holdings to rising Eastern countries, but their grip on nations, and certainly on the powerless
people who inhabit those nations is stronger than ever. It will take
more time and much more effort to ever get those in power to give up that power.
When we look at the charts, despite the gold community pundits
declaring the shortages of and the unprecedented demand for both
gold and silver, tell us where in the charts there are any indications of the fundamentals reflecting what so many assert as the "true"
value for gold to be in the $5,000 - $10,000 the ounce range, or
silver in the $100 - $300 range?
Here are the charts, once again, and our comments. If you see
extraordinary bullish signs within them, let us know. We certainly
keep looking, but cannot find any needle in these "haystack"
For every valid reason that so many others are advocating the
purchase of physical gold and silver, demand, shortages, Chinese
buying, exchange disappearing physical, etc, etc, we echo those
sentiments and suggest/advise to keep on buying, but hold it
personally. However, for more salient reasons, such as discussed
in our last several commentaries, as well as this one, there are far
more important reasons to buy and hold gold and silver.
They are money.
At some point in the future, and no one knows when, no one, but
eventually the unsustainable debt generated by the United States,
BIS, IMF, and other central banks, [all of which are insolvent], will
collapse. The elites will fight the collapse to the bitter end, likely
forcing war to cover their duplicity, and it will get real ugly, maybe
even downright dangerous for daily living, not to sound alarmist.
One can hope for the best and be prepared for the worst.
Thee is one more trading day left for the monthly charts, but we do
not expect there will be any material change, either way, that will
alter what is showing right now. The monthly chart reflects the
makings for change, but the trend is still down. Forget about $5000
or higher gold, for now. It ain't going to happen any time soon.
The breaking of a down sloping TL does not mean the trend has
changed. All it means is that the trend has weakened. Price may
have stopped declining, but it could spend many more months
moving sideways, and not up, at all. Do not place much emphasis
on such an event as a broken TL.
The bearish spacing has not been challenged. The current swing
high rally failed to reach, the $1420 -$1430 area, but developing
market activity is showing a few clues that may prove more bullish
than the market appears.
Within the down channel, the December low stayed above the June low, and price did not even come close to the lower channel line.
Instead, price held firmly within the channel and above the 50%
portion of it, a sign of strength.
From the December low, gold had a persistent rally for several
days straight. March, last bar on the chart, has the look of a key
reversal. A key reversal is when price makes a new recent high
and then reverses to close lower than the previous bar. It can often be a red flag for longs. However, note the volume for March. It is
the highest in 8 months, and it produced a lower close, ostensibly
It may turn out to be negative, but for now, our read is that the
increased volume, [effort], did not produce much in the way of
results for a market in a down trend. Yes, the close is lower, but
the low and the high are higher than the February bar, and the
close did not even make it past the half-way mark of the prior
The overall chart is still negative, but within that context, there are these signs of potential change. If that were true, then the weekly
chart should support this premise.
While the weekly chart is not bullish, it is less bearish than it has
been, for price continues to move sideways and not down.
However, the other bearish signs have not yet been compromised,
like bearish spacing and the failure of the rally to extend closer to
the last swing high.
On a positive note, the increased volume over the previous week,
2 bars ago, is a plus, as we read it. The range is slightly smaller
than two weeks ago, so the increased volume did not produce as
much as one would expect in a down trend situation. The effort of
buyers for the last 4+ weeks was erased, but price did not fully
erase the wide range rally 7 bars ago.
These observations are not anything in which to get overly
enthused, but they are positive signs when sellers should be in total control.
Just as gold rallied persistently during February and half of March,
it has also persistently declined for 10 days, since the last swing
high. Support can be anywhere from Friday's low to the 1240 area,
for now. The key, over the next few months, will be to see how far
the next rally can carry, and then, how much of that rally gets
The demand for silver is much less than that for gold as silver
continues to disappoint, at least for those of us wanting higher
prices. The charts say otherwise. March is an inside month. It is
hard to draw any meaningful conclusion from that, except to say
the close is on the lower end, telling us sellers remain in control.
The picture does not get any better for the weekly chart, except to
mention price is at important support, and the range for March is
relatively small. The narrower range tells us buyers are meeting
the effort of sellers and preventing price from continuing lower.
It could lead to a rally, nest week.
It is not a positive sigh that the current decline has intruded as far into previous support as it has. It is a sign of weakness that buyers
are not defending support very well. Also, the breaking of the lower channel line puts silver into an oversold condition, and oversold
became more oversold. Price put in its first higher close in 9 trading days, and even the volume increased. It is not a game changer,
but when all else appears negative, a little light shows up.
Buy the physical, and continue to avoid the paper from the long
side, for trading purposes.