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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 - Central Bank Manipulation Or Chinese Accomodation? Both.

    Saturday 24 May 2014

    It certainly started out as central bank manipulation, doing
    everything possible to cover their theft and resulting deficiency of
    replaceable physical gold. Almost all of their unauthorized reselling
    or hypothecating went unnoticed or without any ability to stop the
    activity. China had a lot of its gold stored in the United States that
    was stolen in the 1990s. She has since become the world-leading
    economic powerhouse and is now in a position to force the
    Rothschild elites to make good on the theft, which they are doing.

    China wants to see the price of gold at the current low levels as
    she continues to buy up as much of the [not so readily] available supply. The central bank manipulation continues as a means of protecting the last vestiges of the soon-to-fail petro-dollar, and
    soon-to-fail as the world's reserve currency upon which almost
    global trade is based. The Chinese are willing to see gold stagnate
    at current levels as a better bargain during the final stages of
    their accumulation. It works for both sides for totally different

    For how long can these low prices continue...the ever pressing
    question on the minds of the gold and silver community and topic of so many articles written by the experts? While many have striven
    to provide an answer, and 2013 failed to match the "predictions" as to the "When?" issue, the best answer is: For as long as it takes.

    Back in January and February, it become more apparent that the
    highly anticipated huge rally for PMs was going to take longer than
    most expected. In April, we wrote an article that 2014 Could Be Yawner. There is no reason not to carry that notion further into
    2015 before gold and silver begin to challenge their 1900 and 50
    respective high price levels.

    The one thing certain is that no one, absolutely no one can provide an accurate time-table for when PMs will trade at much higher
    levels. 2013 should be a reminder of the many who endeavored to
    fix a date and all of whom failed. It is utter nonsense to think
    anyone can accurately divine the future. The good news is that we
    do not need to actually know the "When?" All that matters is to be
    prepared for the eventuality.

    If you are prepared, then you will have accomplished one of the
    most important responsibilities for wealth protection, preservation,
    growth as a means for survival. Instead of watching the Precious
    Metals Rally clock, an exercise in exasperation, so far, better to be
    secure in the knowledge that you have done what you need to do,
    and instead, start to relax and learn to enjoy more out of life.

    If events are triggered that propel PMs higher, or even
    substantially higher next month, next Quarter, or next year, if you
    are prepared, you will be a winning participant! Once and as it
    happens, you will feel a sense of relief for having waited so long,
    and a sense of accomplishment for having prepared. If you have
    not fully prepared, you have a tenuous gift in both time and price
    in which to act as quickly as possible. The time to act and be better
    prepared is now, and at prices you and your children, and your
    children's children will not likely ever see again.

    Those who are disheartened because events have not occurred in
    the time sequence that was hoped for are missing the point. This is
    not a get-rich-quick scenario confronting almost all of us. This is a
    matter of survival. All anyone can do is prepare. One does not eat
    well and exercise to live longer, one does both to be in the best
    possible health to live each new day. As it happens, those who
    watch their intake and take care of their physical health to enjoy
    daily living also tend to live longer, as an added reward.

    Consider: Physical PM shortages, depleted physical for delivery on
    exchanges, record buying by the public, world-wide, record buying
    by China, corrupt central banker price manipulation, government
    theft or confiscation, unlimited derivative exposure, existing
    demand for the physical that far outstrips available known supply,
    unlimited printing of fiat that can only result in currency
    destruction, civil unrest in many countries, any one of which could
    lead to a wider war, plus a litany of unknowns that can be

    They have already been factored into the current prices for gold
    and silver, and any one of these events, or a more potent
    combination of them acting in unison can drive up the price of PMs
    but have not, to date. This is what you need to know. Whatever it
    is that will launch gold and silver higher has not yet occurred. Many of the "Whatever it is" are already known factors, but their
    influence/effect has not yet been unleashed.

    Yes, if the manipulation stopped, PMs would rally immediately, but
    the event that puts a halt to the manipulation has not happened, so that part of the suppression of gold and silver remains in play. For
    how long can it continue? Again, for as long as it takes. Does
    anyone have a better answer? [Not that better answers cannot be
    had.] For those who do not know the answer, the solution, or at
    least one good solution, is being prepared

    There is another issue not talked about and that is the seeming
    failure of the elites who "appear" to be forced to sell their gold. The very foundation of the Rothschild formula is the acquisition of
    [mostly] gold, and also silver, in exchange for debt-based
    currency. There has not been a smarter collection of individuals,
    [or more devious and destructive], that comprise the Rothschild-
    founded central banking system.

    It would seem odd that such an astute and all-powerful-behind-the-
    scenes-force as the elites would find themselves in such a
    compromised situation to no longer have any, or very little gold
    and silver left. It seems equally unimaginable that the elites could
    be so stupid if they have put themselves in such a weakened state.
    It is a possibility, and one of such incredible and fitting irony, if

    What keeps them in power is the built-in structure they have
    accumulated in every major Western government under their
    control, which also includes the potent military, and the media to
    keep the masses dumbed down. The perverted transition of the
    United States from a sovereign Republic, with an organic
    Constitution that limits government, to an elite central banker-
    controlled, bankrupt corporation, known as the federal UNITED
    STATES, with its substituted federal statutory constitution that
    replaced the original, is the premier example of how the elites
    work through stealth, and over decades as their time frame, to
    accomplish their vile ends.

    Whatever one chooses to believe, one still has to deal with the
    known facts, and what is factually known to date is that gold is at
    1,300, [not 1,500, not 2,000, and certainly not 5,000 or 10,000 the
    ounce], and silver at 19, [not 26, not 50, and for sure, not 100 or
    300 the ounce]. However corrupt or not reflective of the "realprice" for PMs, the charts continue to be the most commonly accepted
    measure, at least for now.

    Regardless of what one chooses to be the most accurate or reliable
    measure, there can be no dispute that preparation for what is to
    come is the best way to deal with "When?"

    Weekly gold has been in a broad TR since last June '13, and a TR
    within a TR since Dec '13. There is no sense of urgency to leave
    the range-bound structure, so one can only exercise patience until
    something clearer develops, which will eventually happen.

    GC W 24 May 14

    The 1280 area is an axis line, acting as resistance from November
    '13 through February '14, and it now acts as a support area for the
    past 2 months. The farther price moves along the RHS, [Right
    Hand Side] of the TR, the closer is gets to a resolve. Sentiment
    favors a move higher, but reality is that one need not know the
    breakout direction beforehand. All one needs do is to be prepared
    for a move in either direction, and follow the market's lead.

    GC D 24 May 14

    Little can be said of the silver market, from the expectation of a
    move higher. Buyers have been AWOL, [a military term: Absent
    With Out Leave], and nothing will change until there is evidence of
    strong upside moves accompanied by increased volume.

    SI W 24 May 14

    The problem with pointing out a small possibility of what could be
    positive activity is that it preconditions the mind to look for more
    supportive evidence at the expense of missing what could be a
    subtle negative development. Just wait for confirmation that buyers are starting to create wide range rallies with strong closes on
    increased volume.

    If silver is to move higher, what we just described will make its
    presence obvious. Until it does, caution is advised. There could be
    another new recent low, and the odds for that event are greater
    than 50%. It may be a buying opportunity. How a new low
    develops, if at all, will make that assessment worth acting on, or

    SI D 24 May 14

    May 24 2:22 PM | Link | Comment!
  • Gold And Silver - Future For Gold As Uncertain As It Is Certain. Silver Will Lead/Follow.

    Saturday 17 May 2014

    Based on several thousand years of history, and based on the last
    100 years of fiats, gold will continue to rise as a store of value, and
    almost all fiats will fail, massively. Which fiats will continue? The
    Yuan and the Ruble, for two. The Panama Balboa is another
    possibility, but Panama will have to do some sorting out to get rid of
    the fiat US dollar, its paper currency. The official money of account is the Panama balboa, but it ceased printing around 1941, in favor of
    the US dollar. This little Central American country has been making
    preparations to disassociate from the fiat Federal Reserve Notes.

    For all the gold China has been accumulating this past decade, it is
    unlikely that China will back the yuan by gold. It would be too
    problematic for what it would do to its economy. Russia has been a
    lesser buyer of gold, but it also has tremendous reserves that it
    mines every year, adding to its holdings. Its natural gas resource
    has taken center stage as a backing for the ruble. Russia will also
    unlikely want to back the ruble by gold.

    There have been numerous articles from reliable sources that havebeen calling for a new gold-backed currency to replace the waning
    Federal Reserve petrodollar as the world's reserve currency, many
    thinking a gold-backed yuan as a prime candidate. In this regard,
    gold's future is uncertain. It will undoubtedly play a significant role,
    but not likely linked to one specific country as a new world reserve

    From the solidifying financial and economic ties between China and
    Russia, China and several other natural resource rich countries, and
    the BRICS alliance, a strong possibility lies in contractual ties
    amongst all these countries, and not a single nation gold-backed
    currency. A perfect example is what will likely be concluded next
    week between China and Russia, the largest ever natural gas deal.

    The deal is between Russia's Gazprom and China National Petroleum
    Corporation. All that needs to be finalized is the price. What will
    decidedly not be a part of the deal is any Federal Reserve Dollar as
    a part of the pricing mechanism, nor any use of the fiat "dollar."
    Expect to see more and more international dealings by Eastern and
    BRICS nations that preempt the soon-to-be-former world reserve

    Obama does not "speak softly," nor does he carry a "big stick."
    ["Speak softly and carry a big stick," was first used by Theodore
    Roosevelt when he wanted Congress to increase the amount of
    money he needed to carry out and define his foreign policy, using
    "diplomacy" backed by military might, America's [outdated] foreign
    policy to this day.] So Obama's sanctions and threats against Russia
    ring hollow, and all parties concerned know it.

    Russia has more than enough natural resources and more than
    enough willing customers to not worry about Obama, the US, or its
    fiat "dollar." Russia's Ministry of Finance has already announced plans to use the ruble in all future contracts as Russia takes more steps
    toward "de-dollarization." China has been acting in a similar capacity
    as it has been making deals with several other countries, outside of
    the "dollar."

    Prior to the Rothschild elites forcing the US into official bankruptcy in
    1933, [from which point in time forward, the US has been owned by
    a few select international bankers...a fact about which almost all
    American remain ignorant], prior to 1933, the US used gold as a
    backing in it contracts with other nations, so there is a viable history
    for using gold, and any other natural resource, [oil, copper, natural
    gas, as a few other examples] as an integral part of contracts and
    foreign exchange.

    The deal with China may require backing with gold, to some degree,
    as a guarantee. There may be a clause that exchanges yuan or
    rubles for gold, silver, copper, etc, without the necessity of any
    country having a gold-backed currency. A soon-to-be relegated-to-
    third-world-status country, like the United States, would not be able
    to participate, by virtue of the fact that it will be unable to bring
    anything to the bargaining table. All other countries will engage
    based upon a relatively hard currency and/or a natural resource
    to act as collateral.

    China, Russia, Panama, other BRICS, Turkey, Iran, et al, can keep
    their fiat currency, but simply back up any contract with acceptable
    collateral, oil for gold, gold or some acceptable equivalent for
    whatever is being sold. This will eliminate the stronghold that the US
    and UK have maintained for the past century, and the military might
    will become a whisper of what it used to be. For now, however, the
    military remains very much a tool of desperation as the once mighty
    West continues its unabated slide into a decline from which it cannot

    The time frame between now and then remains an unknown, and it is very likely that the elites will cause major disruptions, like Ukraine,
    aiming for what it knows best, profitable war. Countries and people
    suffer, but the Rothschild formula for creating chaos, leading to war,
    provides incredible wealth for themselves.

    With the US Gestapo Homeland Security purchasing billions of
    bullets, 7,000 NATO personal defense weapons, aka the kind of
    assault weapons used by civilians that the Obama/United Nations
    wants to outlaw, and now the Department of Agriculture wanting
    to buy submachine guns, it is very apparent that the elite-controlled
    corporate federal government is preparing for war...against
    Americans in their own country. This will not end well, and perhaps
    for the first time, the ravages of war will be confined to the US.

    Over a year ago, we were going to do an article on the Department
    of Homeland Security, [If you guess the Homeland to be secured is
    the US, you would be wrong. The Homeland to be secured, at all
    costs, is the corporate federal government.] The reason for not doing
    the article was the content, the fact that Homeland Security has
    hundreds of "camps" around the country, where, thanks to the Bush
    Patriot Act and Obama's National Defense Authorization Act, on top
    of the 1933 amendment to the Trading With The Enemy Act, [the
    Amendment made U S citizens the enemy within their own the Act.], the corporate federal government can
    declare anyone an enemy and held without rights of any kind, and
    for any duration. Think of Guantanamo Bay coming to roost on US

    There was more. Homeland Security has also purchased tens of
    thousands of caskets, stacked up, row after row after row. Draw
    your own conclusion as for whom they are intended. No country
    at war has a history of bringing back war victims to be buried in
    special camps.

    The uncertainty for the role of gold has yet to be defined.
    Expectations for a gold-backed currency may be misplaced. It could happen, but it seems unlikely that the largest holders of gold have an interest in putting themselves at an economic disadvantage by
    pricing out their exports. However, within whatever the realm of
    uncertainty for gold's specific role is, it will undoubtedly remain
    pivotal. Rising from the ashes of central banker suppression for the
    past several decades, it is certain that the price will go higher.

    Will it be $10,000, or as high as $50,000 the ounce, the price range
    so often speculated on as its next level of price reality? Who knows?
    It will be determined by a freer market than it has been for over
    eight decades, or more. Regardless of where the prices of both gold
    and silver finally reach, it should not matter to anyone who is

    The best way to participate is to be prepared. The best way to be
    prepared is to already own physical gold and silver. The handwriting is on the wall. Western fiats are destined to fail, not next week, not
    next month, maybe not even this year, but failure is coming, and the unelected European "officials" are doing whatever they can to steal
    whatever they can get away with.

    In the United States, the foreign-owned Federal Reserve has been
    stealing wealth through the harder to detect, but equally as insidious
    inflation. With the fiat Federal Reserve Note worth about 3 cents
    today, relative to 1913 dollars, that means the Fed stole 97 cents
    of every dollar over the past century. If you do not understand
    inflation, it is the debasement of money, and the value debased goes to the benefit of the issuer. The Fed does nothing if it is not for its
    own benefit.

    Expectations that gold would respond to the Rothschild-inspired, US-
    led Ukrainian situation have been proven wrong. For as long as the
    US/UK/EU troika can exert any degree of control over those
    governed, for as long as central bankers control all Western
    countries and fiat purse strings, gold and silver will remain in their
    bottoming phase, and the bottoming process can last for longer than
    most expect. Neither gold nor silver appear to be turning up, and for
    that look, we turn to our favorite topic, charts.

    If gold or silver appear to be unresponsive to known news, be it how
    much China is buying, potential war breakout in Ukraine, financially flagging EU, the US losing control on so many fronts, it is because
    both are still under the control of relatively unseen forces that
    continue to exert pressure, like a helium-filled balloon being kept
    under water.

    Many say that the charts are irrelevant, but no one is pointing to
    anything else that is. For as long as we have been following markets
    via charts, those of gold and silver have told the most accurate story
    in the face of news and events that would suggest otherwise.

    Before gold can rally, it has to first turn the trend from down to up.
    We see no evidence of a change in trend. The bearish spacing is
    repeated, again, as a reminder that it represents a weak market within its down trend. How anyone can posit a bullish scenario from
    what the charts show flies in the face of known facts, as depicted in
    the charts.

    The biggest fact upon which almost all can agree is that the trend
    remains down.

    Within that context, there are slight signs of bottoming activity, such
    as the current two month TR holding near a 50% retracement of the
    last swing low to swing high. For this to occur in a down market is a
    plus; not enough to turn the trend, but what could lead to a change
    in trend. Also, within the past two months the weekly closes are
    clustering, a sign of a pause before the previous trend resumes, or
    a resting period that can begin a market turn.

    For now, there is no confirmation, either way.

    GC W 17 May 14

    The shorter perspective of a daily chart indicates a recent up trend
    that has turned neutral. The most important elements for reading
    developing market activity in any charts are price and volume.
    Everything else can almost be ignored.

    Three weeks ago was the 3rd highest volume of the month, occurringon a lower close, indicating sellers "won" the battle for that day.
    Volume is important. The volume increase should lead to a lower
    market. Yet, when you look at that specific day, it was an inside day,
    relative to the previous up day. The question to ask then is, why did
    all of that increase in volume not take out the low of the previous
    day, and why was that day's range slightly narrower? While sellers
    won the battle that day, in context to the increased volume, it was
    buyers that prevented the effort of the sellers from achieving a lower level.

    Friday was a lower low, but notice this time, volume declined, and
    the close was mid-range the bar, a stand-off between buyers and
    sellers, but more of an edge to buyers for stopping the momentum
    of the sellers.

    Price closed just about dead center of the two month TR, and that
    says balance. From balance comes unbalance, and the further price
    moves along the RHS, [Right Hand Side], of a TR, the closer is the
    TR resolve, in either direction. Instead of having to guess in which
    direction price may move, it is better to be prepared for either event and then act accordingly.

    GC D 17 May 14

    From the August 2013 swing high, price went into a protracted and
    labored retreat until the beginning of February 2014. After a three-
    week rally, from the February swing high, price once again was in a
    labored 12 week decline. When it takes sellers four times as long to
    correct a market that is in a clear down trend, it tells us sellers are
    generally weak.

    Last week, it was mentioned that when an area is continually
    retested, it becomes weaker and subject to being broken, unless
    buyers, in this instance, can show more strength. A look at a more
    detailed daily chart may be helpful in getting greater clarity on the
    chance of silver make a new recent low.

    SI W 17 May 14

    There have been a few attempts to sell silver to yet lower levels,
    since late April, and on each occasion, silver was able to rebound and close well on strong rally days. One would not expect to see that kind of relative strength in a down market. The decrease in trading
    volume on Friday indicates relative weakness by sellers for not being able to drive price lower than occurred.

    Price needs to get above 20, and hold, if buyers want to wrest
    control from sellers. If not, sellers will see this buyer inability,
    and that may prompt sellers to try for new lows.

    Silver will also be certain in seeing eventual higher prices. With the
    gold/silver ratio at the high end, favoring gold, and silver tending to
    lead PM rallies, silver could outperform gold to the upside, once the
    trends change. For this reason, silver may be the one to watch.

    SI D 17 May 14

    May 17 4:12 AM | Link | Comment!
  • Gold And Silver - Rally Or No? War Or Not? Probably No For Both.

    Saturday 10 May 2014

    The elites want war. Will they get war?

    In the past, it was a slam dunk. There was no nation strong enough to oppose the elite's weapons of mass destruction, aka debt and
    the US military. How things have changed. The failed Western
    banking system is way past its expiration date. All the elites horses
    and all the elites men can never put back this broken derivative
    mess again.

    War has always been the go-to tactic for the Rothschild-driven
    control-the-world-mentality. From the spawned chaos arising from
    their carefully chosen plan[s] for instigating war[s], not only would
    they ultimately prevail in their sick objective of manic control, they
    would make a ton of money and grow their operations even more.

    How have things changed?

    West v East. Get ready for a RRRUUUUMMMMBLE. In the West
    corner, representing a broken banking system, a democracy-gone-
    wild, turned Fascist, a spy-driven network of governments running
    on fiat exhaust fumes is none other than the elite-propped
    community-organizer-turned-teleprompter-reading US president,
    dispenser of unlimited amounts of fiat, lies, and elite evangelism,

    In the East corner, fresh from rebuilding a West-led breaking of its
    government is former KGB head, [a different kind of community
    organizer], President, Prime Minister and President again,
    accumulator of gold and lord over vast amounts of natural
    resources, deals made with China on promoting growth, and BRICS member, Vlaaaadimirrrr PUuuuutin.

    Previously, the elites have always remained unopposed. The days
    of ransack a nation, grab its gold and gain control of its paper
    currency are over. [Maybe not so much, given what the US-led
    insurgents did to Ukraine gold and financial holdings, both gone,
    never to be seen again.]

    Like any parasite that is allowed to go unchecked, it will eventually
    consume its host. The US has been consumed and its fiat carcass is
    going to be left for Third World dealings, but do not tell its US
    citizens. The elite-controlled US media has been silent on these
    kinds of nation-destroying events and wants to surprise everyone
    about their unacknowledged, decaying, Orwellian existence.

    Now, the East has been growing into a financial powerhouse, not
    without their own problems, but the Eastern nations have been
    tending to their growth areas, developing trade relations and
    cultivating their natural resources, migrating themselves into their
    BRICS alliance. In addition to BRICS, there are parts of Central and South America, those areas in Obama's backyard he has chosen to
    ignore and [mis]place his elite-dictated focus on "more important"
    areas for which he has no business in meddling, like Egypt, Libya,
    Syria, and now Ukraine.

    Why Ukraine, why now? [Not so]Simple. The elites have been
    miscalculating and misfiring their waning powers, still very much
    formidable, but nations are becoming less willing accomplices.
    Egypt, failed. Libya, a victory because Ghaddafi's gold was
    "repatriated" back to the NY Fed, albeit temporarily, because it
    eventually then made its way to Switzerland for recasting for its
    ultimate destination: China. Syria, another failure as Putin
    outmaneuvered and embarrassed the inexperienced and political
    lightweight Obama.

    The elites are running out of time and options, [the latter is not to
    be confused with the soon-to-be-morphing-into-a-death-spiral
    derivatives]. They are not stupid by any stretch of imagination, but they know a losing hand when they see one. The best the elites can
    hope for is to keep kicking the fiat time-bomb can down the road to let the next elite generation-D handle it. ["D" for Disaster]

    The world is watching the elite-inspired stick-poking of the Russian
    Bear Putin, as the West threatens Russia with its NATO-backing
    military might, [possibly fraying] and NATO nations [now
    questionably]backing that previously unfailing military trump card.
    Russia is a problem for survival of the Fascist New World Order
    dream, and it must be checked and weakened, at all costs. That is
    the purpose of interfering with Ukraine.

    Poland has allowed US military forces to operate in its country.
    Stupid Poland, but partially forgiven for its historically negative
    relations with Russia and Ukraine, but decidedly more with Russia.
    Poland's sovereign memory is still scarred by bloody and brutal
    wars. Western Ukraine used to be eastern Poland. The aftermath
    is, despite the devastating history between the two nations, and
    partly because of it, Poland and Ukraine have rekindled their
    mutual historic ties and bonds. Both dislike Russia, so Poland may
    stay in the NATO fold.

    The rest of Europe may not. Mention was made last week about the economic ties between much of Europe and Russia. [See Elites
    Want War. Front Man Obama Pushing Hard
    ]. Europe stands to
    suffer financially, economically and could be left out in the cold,
    literally, if Putin decides to say "Thank you" to Europe, a more
    polite way of using a four-letter word, instead, but the impact will
    be the same: no natural gas supplies or certainly at far higher
    costs. Putin to Europe: "You want the United States? You can have
    the United States."

    Putin learned that tactic from Obama when Obama lied to American citizens by saying, re ObamaCare: "You want your health
    insurance? You can keep your health insurance." Now, millions of
    Americans are without any health insurance. Take heed Europe.

    Germany could play a leadership role, or more of one were it not
    for Angela Merkel. There is growing unrest in Germany, a smart
    nation currently being led by a not so smart Chancellor, too slow
    in recognizing the shifting balance of powers that are increasingly
    against any U S Third Reich mentality. The German business
    community is not about to let their political leaders destroy that
    nation from within, as Reagan, Bush Clinton, Bush, and Obama
    have in the elite Fascist-entrenched US.

    As Germany goes, so goes the rest of Europe, and if Germany
    balks at taking a leadership role, which means severing its
    umbilical relations with the US, smaller nations will bolt to the
    BRICS side as a last resort move in a desperate attempt at self-
    sovereign preservation. In the end, Germany will likely turn to the East and forsake the insidious ways of the West. It is too great a
    nation to allow itself to become so marginalized by the US, even
    though it was the incubator for the Rothschild rise to world
    dominance and the genesis of all that is wrong in the world, today.

    The upshot is, for as hard as Obama has been beating the drums of war, sending over military troops, "advisors," and war ships, the
    tides of change may have left the US military threat real, but with
    less ability to follow through. Russia will be backed by China,
    India, and other nations building both gold reserves and a business
    infrastructure designed toward financial stability and growth. When
    you throw in the fact that the European nations may draw a
    financial and economic line they will not cross, the US will become
    totally isolated, save Poland and a few other sycophant nations that do not have any significant bearing, [hear that UK?].

    For these reasons, war may not be as looming as it appears should, as the German businessmen suggest, "common sense prevail."
    Based on the lack of PMs response to the ongoing potential for war, smart money does not seem overly concerned.

    The ever fraying Paper Tiger,[ironic that it comes from China,
    zhǐlǎohǔ (紙老虎)], may be meeting its Ukrainian Waterloo. Instead
    of being provoked into war, Putin is remaining in the background,
    knowing that IMF promised loans will wreck Western Ukraine, and
    that all Eastern eyes are watching the eventually disastrous
    outcome that will have the Ukrainians scrambling back into its
    Russian sphere.

    Like Iraq, Afghanistan, Egypt, Libya, wherever "democracy" is
    spread, like a plague, the results are a country left in ruin. Poor
    Ukrainian citizens for listening to the siren call of the Financial [We-
    will-gut-your-country] West, for it has already been faring poorly
    for them.

    If you have gold and silver, you have the best odds of surviving the impending collapse of the United States as we all know it. It will be
    sad for Americans, just as it is unfortunate for Ukrainians, Cypriots, Greeks, Irish, Spanish citizens, all suffering for the sins of their
    governments. All take pride in their national heritage. Our point is
    that national pride is separate and distinct from the governments
    that run [ruin] it for The People.

    The die is cast. The US dollar will die. Much of the rest of the world
    will move on and recover. The United States will not. Its de facto
    government has misled The People for well over 100 years. Few in
    the United States have any idea of what is to come. Some will be
    better prepared than most, and those who are better prepared are
    the owners of gold and silver.

    The purpose of this article, and recent ones on this topic, is how the prices for gold and silver will not by rallying significantly until the
    resolve of the devolving West plays out, or at least that of the
    increasingly dysfunctional de facto federal government, vastly
    different and distinct from the people living within the country.

    It is silly for anyone to lament over the higher prices paid for
    acquiring what gold and silver they have. Price is irrelevant. How
    many times must this be said? Each day brings us closer to the
    consequences of a Federal Reserve-dictated government that
    overspent and misled the world, not just its citizens.

    Those who choose to remain within the banking system do so at
    their own peril. Those who say, "What other choice do I have?"
    have chosen not to make an alternative one, for they are not
    willing to think for themselves. If they were to be a part of a herd
    mentality, which they are, and could see the herd heading for a cliff that leads to certain financial death, would seeing the inevitable
    results of not leaving the path of the herd prompt them to make a
    different choice, or would they continue to say, "What choice do I have, I am going to go over the cliff with everyone else."?

    Hard to understand people who choose not to choose.

    One choice that is essential is the ongoing purchase of the physical
    metals at these absurdly low prices, unlikely to be seen again for
    several generations to follow. We are all on the cusp of historical changes that will alter the geopolitical landscape for the next
    several decades. To be concerned about where price is for the
    physical makes little sense. What makes the most sense is to be
    amply prepared for what is certain to come.

    Our take on the charts for gold and silver:

    The monthly chart is just 1/3 of the way through, but it is always
    worth having awareness of it for context. There is still a lot that
    bulls must overcome once a low is confirmed. The comparison
    between the two most recent corrections is an interesting one. So
    far, price has not made much progress to the downside, especially
    after the sharp volume increase on the decline three weeks ago.
    The lack of any lower follow-through is worth noting.

    GC M 10 May 14

    There is symmetry between the monthly and weekly evidenced by
    price moving laterally over the past seven weeks. Except for a
    higher close, five weeks ago, there is a clustering of closes. This is
    the market engaging in a resting spell before continuing lower, or
    in preparation for a turn to go higher.

    What is important to realize is that one need not guess in which
    direction price will go, but, instead, be prepared for either event
    and follow the market once it declares its intent.

    GC W 10 May 14

    The daily provides greater detail but does not provide any
    definitive clue for the next directional move. The volume activity
    within the TR has a slight edge for buyers, but the weak effort of
    the last two TDs in a weak response to the wide range decline
    preceding, is not encouraging. Price could still rally, next week,
    but as developing market activity stands, price could as easily
    work lower.

    GC D 10 May 14

    The trend is down and in an area of support. The trend carries the
    greater weight. There is no evidence of strength in the silver
    market, at this time. It is a great opportunity to accumulate more physical at incredibly low, suppressed low prices., but that is all.

    SI M 10 May 14

    Lacking anything definitive for taking a long position in futures, it is
    worth mentioning that the more times a support or resistance area
    is tested, said support or resistance is weakened, and there is
    always the potential for another low in silver. In some ways, it
    makes sense for it would wipe out and demoralize a lot of longs,
    even physical holders who should not even care where the
    temporary price of silver is.

    This is not to say the either silver or gold could begin the early
    stages of a strong rally campaign, next week, next month, next
    year. Knowing when really does not matter if one is prepared for
    events as they unfold. The "WHEN" that eludes almost everyone
    will occur when price is ready to move, and not a day sooner.
    That is how markets work.

    SI W 10 May 14

    No matter how many times one looks, there is very little in the
    way of evidence that says silver is about ready to take off. Quite
    the contrary, for silver continues to make lower highs and lower
    lows. When it comes to what one would like to see happen, and
    what is actually happening, it is only the latter that counts.

    SI D 10 May 14

    May 10 3:28 AM | Link | Comment!
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