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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 - They Are Money! 0 comments
    Mar 29, 2014 5:52 AM

    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
    participants.

    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
    percentage.

    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
    person.

    Can anyone explain to their 8-year-old son or daughter what fiat
    currency means?

    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?"

    What happened?

    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"
    charts.

    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
    negative.

    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
    range.

    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.

    GC M 29 Mar 14

    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.

    GC W 29 Mar 14

    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
    corrected.

    GC D 29 Mar 14

    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.

    SI M 29 Mar 14

    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.

    SI W 29 Mar 14

    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.

    SI D 29 Mar 14

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