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Gold And Silver - 2014 Could Be A Yawner; Be Prepared For A Weekend Surprise.

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