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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 - 2014 Could Be A Yawner; Be Prepared For A Weekend Surprise. 0 comments
    Apr 12, 2014 2:26 PM

    Saturday 12 April 2014

    For the past year, we have been saying that the charts for gold and
    silver are likely bottoming in a normal manner, and it takes time
    for a this kind of formation to complete itself. It remains the case,
    to date.

    What is likely to cause a sharp price reversal to the upside for gold
    and silver? If both were allowed to simply adjust to inflation, you
    would see a fairly substantial rally. Given that will not be the case,
    what will be a/the catalyst for a precious metal [PM] change in
    trend?

    Could it be enormous purchases of whatever-is-available physical
    gold by countries like China and India? No. That has been in the
    works and a known fact for a few years now, and gold continues to
    languish near recent lows.

    How about prospects for a U S-prompted breakout of war? [No
    other country seems interested in starting one.] No. Libya failed to
    ignite anything, nor did the Arab Spring or the ongoing Syrian
    situation where the US sees chemicals everywhere, except in rebel
    hands.

    What about Iran and its "nuclear proliferation" that needs to be
    stopped? No. Pakistan and North Korea have nuclear capabilities
    well beyond that of Iran, so a nuclear threat from a country that
    does not have nuclear capability is another US false flag. What Iran
    does have that neither Pakistan nor North Korea have is oil. Wait.
    Are not all contracts for trade in oil based on use of the petrodollar? The first "yes!"

    How about the US-sponsored coup d'etat in Ukraine as an
    instigation for war? No. It has been well-checked by Putin, so far.
    Wait. Are not all contracts for natural gas trade based on use of the petrodollar? A second "yes."

    What about the loss of the petrodollar as a world reserve currency? Would that cause the prices for gold and silver to rise dramatically? A huge yes for that one.

    Come to think of it, the reason for the US-led invasion of Iraq was
    due to Saddam's cache of Weapons of Mass Destruction. Turns out,
    there were none, but Iraq did have oil, just like Iran, and both
    countries were selling their oil for gold, by-passing the use of the
    US fiat-issue petrodollar. The elites have consequences for when
    their rules are ignored. Iraq was invaded, and partially ruined, and
    Iran has been economically sanctioned

    Syria is not known as an oil-producing nation. True. That is not the
    threat to the US. What is a threat is the strategic location of a
    Syrian port used as an integral part for sending Russian natural gas to Europe. A successful pipeline that is not run by the US is a huge
    concern, especially because the natural gas coming from Russia will not use the petrodollar. Without the petrodollar standard, the US
    cannot export its inflationary fiat to the rest of the world.

    Countries that use the petrodollar hold large quantities of US
    treasury bonds to facilitate trade agreements. If countries, let us
    say like Iraq and Iran, stop basing oil trade on the petrodollar,
    other countries will follow suit. The elites cannot allow this to
    happen. Both countries are relatively small compared to the BRICS alliance, of which China is fast-becoming the world's biggest energy user. All of the BRICS nations,[Brazil, Russia, India, China, South
    Africa], and a host of other countries are starting their own trade
    agreements, and guess which country is "odd man out?" The elite's
    own United States. The elites cannot allow this to happen, but they
    cannot stop it, either. This is a problem for them.

    While everyone is focused on the demand side for gold, doing all
    kinds of calculations, trying to figure out the real number of tonnes
    China has purchased. Our simple answer: a lot, and the real number is of no consequence.

    All of the charts depicting countries purchasing gold, graphs
    showing the depletion of COMEX, LBMA, GLD, et al, are well done
    and nice to look at, but none address why the price of gold and
    silver are at relatively low levels, these days.

    Gold, more so than silver, has been purposefully suppressed to
    keep the fiat petrodollar propped up. The elites will stop at nothing
    to prevent gold from being recognized as an alternative to their
    Western world fiat Ponzi scheme. Why has the elite-puppet Obama
    been continually enabling and prompting the illegally sponsored
    coup in Ukraine?

    The US is fighting to keep the Wizard behind the curtain from being
    exposed for the fraud that it is. The fraud is the fiat Ponzi scheme
    and the utter insolvency of the entire Western central banking
    system. What keeps it alive, actually more on a respirator, at this
    stage, is the grip over the entire Western world political system
    which is designed to keep the masses enslaved to the debt system
    from which there is little hope of escape.

    There is a reason why there has been such a militarized build-up in
    the United States, used against certain countries to keep all other
    countries in line, lest they be next. The militarization of local police
    forces, with their highly armed swat teams, former military
    vehicles being "donated" to cities and towns. This is by elite design
    to have the means of keeping the masses under control, no match
    for the excessively armed police. This is why elite-kisser Michael
    Bloomberg, who has turned the NY police into a virtual private
    military, and why he has been busy campaigning for national gun
    control. A population with no means to defend itself is an easy
    target to keep under control.

    Chicago has some of the strictest gun-control laws in the nation,
    yet crime and death by gun is amongst the highest in this country.
    What will more gun controls accomplish? Nothing. Not a thing. All
    that needs be done is to enforce the gun laws on the books, but
    that would not solve the disarming of the people, which is what the
    corporate federal government wants in order to eliminate all forms
    of civil resistance.

    We got a little off topic re the threat of dismantling of the
    petrodollar, and with it the rapid fall of the United States into a
    third-rate country drowning in debt with no way out. The elites can
    ill afford to lose its primary ATM machine that feeds the top .0001% who profit by controlling all the money. All of these seemingly
    extraneous events are really tied into the control of the powerful
    and power-hungry elites. The Rothschild crowd.

    As was stated last week, we know of no sentence that has had a
    more profound effect on the people of the world than the one
    uttered by Mayer Amschel Rothschild, "Give me control of a
    nation's money, and I care not who makes the laws." [See Power
    Of
    Elites More Important Than China's Gold, 5th paragraph and the
    ones following as explanation.]

    Why is it that 2014 may be like a repeat of 2013 in failed
    expectations for gold and silver to reach new highs and beyond?

    For as long as the elites maintain their monetary power to destroy
    countries via their imposition of financial terrorism, [Greece,
    Cyprus, Ireland, Spain, et al, and now trying to gain financial
    control over Ukraine, in desperation. The utter inability of
    Germany to repatriate its own gold, to which one should ask, why
    is Germany not in an uproar over this? Hint: Power of the elites to
    keep Germany in line.], the price of gold and silver will take time
    to turn around.

    The catalyst will not be how much gold China owns. The catalyst
    will be the fall of the petrodollar. Once that happens, checkmate
    elites. Game over US. Gold and silver, rise to your natural
    relationship between supply and demand, no longer being
    artificially suppressed.

    The problem for now? There is no viable alternative to replace the
    broken fiat petrodollar scam. The Chinese have already made clear that they do not want their Yuan tied to the price of gold, and China is not really equipped yet to have their currency be a substitute
    world reserve, emphasis on the adverb "yet."

    Russia's ruble is not sufficiently held by other countries to make the ruble a reserve currency. It is in a position to grow into that
    status, but not in the near future. Which country has the ability to
    replace the petrodollar? None of which we are aware. The BRICS
    nations are successfully building an alternative to trade that
    eliminates the fiat petrodollar, and that, more than anything else
    in the interim, poses the biggest threat to its demise.

    We could see a marking of time during which all of this continues to unfold. No one has a clue as to the how or to the when, which is
    why 2014 could be an extension of 2013. The way in which Obama
    keeps prodding Russia could precipitate an event that escalates out of control, just possibly, as an example. This is why we say to
    watch out for weekend surprises. When people least expect, and/or are in a position to least react, some kind of announcement could
    be made that devalues the fiat Federal Reserve Note, still wrongly
    called the "dollar."

    A few paragraphs back, we said the there is little hope of escape.
    For as long as the fiat monetary Ponzi scheme exists and people
    remain tethered to it though debt, dependent upon government
    through assistance/subsistence, there is no exit. The only means,
    or perhaps the best means is through the buying and personally
    holding physical gold and silver. Both PMs represent a form of
    wealth that leads to independence from control of any government.

    This is why the Rothschilds took over this country via the Federal
    Reserve Act, ["Give me control of a nation's money, and I care not
    who makes the laws."], gained control of the money, and then
    once in control, had FDR make the Executive Order to have
    "all persons" turn in their gold under penalty of $10,000 and/or
    confiscation. This was also another sham that fooled people into
    believing an Executive Order applied to them, which it did not. But
    that is how the Rothschild formula works, through total deception.

    [We keep repeating the Rothschild sentence about control over the
    money supply because once you comprehend how it is the genesis
    for all what ails people in their own country. Governments are
    nothing more than instruments for elite control over the people.]

    These are the reasons why we keep exhorting everyone to buy
    gold and silver. Price is immaterial, having it is all that matters. Having gold and/or silver is what will keep you financially viable
    when this country falls apart, and fall apart it will. The US has been
    hollowed out since the Rothschild central bankers took over in
    1913, in a financial coup d'etat.

    On a final note, before reviewing the charts, a second interview
    conducted by SGTReport has been posted on the site. Here is the
    link for anyone interested. The Rothschild IMF Bankster Fiat Death
    Machine.
    The title was selected by Sean of SGTReport, and it gives
    a clue to some of the content discussed.

    There is not a shred of evidence that the price of gold is about to
    embark upon a much higher trajectory. This is the value of reading
    developing market activity within the context of all the world news
    and events that potentially impact price. What the market is
    saying is that nothing in the news is disturbing the bottoming
    process. What people are saying about the market may be a
    different "story," but it is the market that has the final say. Pay
    attention to it.

    What we are paying attention to in this chart is the volume spike.
    Whenever you see a sharp increase in volume, the immediate
    question to ask is "why?" Remember, it is not the public that
    creates volume. The public reacts to it. Therefore, almost always,
    any increase in relative volume is indicative of "smart money"
    activity.

    When volume increased while price was declining, one would
    naturally expect to see more downside follow through. When the
    opposite happens, it is worth paying closer attention. The lack of
    further downside suggests buyers were overcoming sellers, shifting market composition from weak into stronger hands, and that is
    positive for a market trying to form a bottom.

    GC W 12 Apr 14

    The daily chart confirms the weekly. The read of the developing
    market activity prompted a buy recommendation at 1291. Because of our own trading rules, a sell, about $18 higher was made a few
    TDs later. Price is still under a half-way retracement from the
    March swing high to the recent April swing low. On the wide range
    bar lower, market "S/D," which indicates Supply overcoming
    Demand, a thin horizontal line was drawn off the high, a place
    where sellers will defend a retest. That high is just above the 50%
    mark of the trading range. The confluence of two separate
    indicators could make the 1335 area resistance on a rally to that area.

    For now, it looks like gold can be bought on breaks, based upon
    whatever rules one has for establishing a position in the market.

    GC D 12 Apr 14

    While silver is not showing signs of strength, it is showing signs of
    resistance to downward selling pressure. It has taken 5 - 8 weeks
    to correct the previous 3 week rally, shown on the chart. This tells
    us that even in a weakened state, silver is showing an ability to
    rally with greater ease than decline. Little signs like this can be the
    forerunner of more change to come. Preparation becomes
    important in order to take advantage should a buying opportunity
    present itself.

    SI W 12 Apr 14

    Here we see the importance of reading developing market activity. You look for patterns because they repeat, over and over. We
    discussed a volume situation in weekly gold, and here it shows up
    on a daily silver chart. The patterns will not always be exactly the
    same, for good reason, but they sure do rhyme a lot.

    The increase in volume at an area of support is not random.
    Markets are not random, except for those who have no clue about
    what price and volume can consistently reveal. We look for these
    repeating patterns to be prepared for opportunity when it strikes,
    for when a pattern is recognized, it is the market's way of offering
    an edge. The most important part of seeing these behavior
    patterns is to know how to respond to them as they occur. How do
    you know how to respond? You devise a set of trading rules that
    fit the pattern behavior. Everything then become a function of
    following your rules of engagement. Nothing is left to chance. This
    is how skilled professionals trade. Therein lies a message.

    SI D 12 Apr 14

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