Saturday 9 March 2013
Based on the tape, [in chart form], precious metals appear postured for a rally. To what degree is unknown, but current developing market
activity favors one. Silver continues to outperform gold, and we start
Based on February's low-end close, one would expect at least a
nominal lower low for March. That event has occurred, and already
one-third through for the month, there has been no other downside
effort. Just that showing alone gave rise for expectations of a better
performance this month.
Price still remains entrenched in a sideways trading range [TR], and
they tend to last a lot longer than most expect, this one being no
We often draw attention to the last August breakout as being
significant, and the strong likelihood for its breakout to be important
support. That has not disappointed. Now, in addition to the lower
channel line also checking the price decline, we note an important
drop in Open Interest over the past few weeks.
Time will tell, but this may be another, if not the most important low
within the TR.
Failed probes lower can be interesting, but they are much less reliable in a down trend. It depends upon where they occur. The one from last August was at important support. Early January was another, and the
current failed probe is a part of another pattern that suggests a high
reliability for a rally from current levels.
The silver stars appear to be lining up.
Where silver's monthly close was low-end, gold's was slightly off the low. What became a distinguishing potential turnaround for gold was
the fact that February was the widest of the past 5 month decline.
You tend to see the widest bars at the beginning, but when at the
end, they can be a sort of selling climax and a form of downside
We see the clearer activity from the silver charts giving greater
support for how to view the gold charts. Without silver, gold's
interpretations would be much more subjective. Instead of a more
obvious starting point for a rally from last August, gold had a
congestion area that was likely to act as support in the future.
The last three weeks have overlapping bars, a form of balance
between buyers and sellers at an area where sellers have been in
control for the past six months, and perhaps now losing it. The
clustering of closes echoes the same thing, a possible turning point.
Where the present suggests a rally, and the future has not yet
happened, the past reminds us that there is considerable work to
overcome selling efforts, and future rallies appear to have their work
cut out for them. One needs to be select in buying futures.
As we have steadfastly maintained every week for so many months
past, buying physical gold and silver are the best steps one can take
for preservation of buying power and for wealth accumulation. The
stock market may be at all-time highs, but as Goldcore points out, the
Dow rally since 2007 is just 50% of gold's appreciation for that same
period. The reasons for buying physical PMs is vastly different in
purpose and in risk when compared to buying futures.
There are records being set for buying Silver Eagles, and for gold
eagles, they are equally encouraging. Still, the numbers of people who
own and hold physical gold and silver are still relatively small. Those
who know are buying and know why. Those who have yet to buy have no reason to wait even one day longer. The government noose is
tightening, and sooner, rather than later, it may be close to impossible
to buy physical gold and silver without directly reporting purchases to
the central planners whose plan will be nothing short of confiscating
the last remaining "vote" of freedom.
If you want to know the future, be very aware of the past. There is
one, and one reason only why Socialist Franklin Delano Roosevelt
issued an Executive Order to have those poor saps who listened turn
in their gold. The New World Order has been taking over this country
since the 1860s, one piece at a time. The "outlawing" of gold was their effort to get people to give-up their only means of wealth. When one has wealth, one does not need the government, and central planners
know this. It is unacceptable to not be in total control of the people.
When you give up your wealth, you give away your independence.
As an aside, Executive Orders only apply to federal employees and
"persons." You should know that by statute, a "person" is a
corporation, a creature of the state and owing total compliance to the state. If one chose to believe that he/she were such a "person," [a
word of art purposefully used to deceive], and "felt" obligated to turn
in his/her gold, well the government was not going to tell them
otherwise, for that was its purpose, back then. With today's Rule Of
Law being ignored by all forms of corporate federal government, it is
also much easier to keep the people dumbed down, and afraid.
The turning in of gold then is now the effort of the NWO to get people
to "register" their guns. It is easy to control a people with no form of
wealth. It is not so easy to control even a poor population that
remains so heavily armed. This is exactly what Hitler did in Germany.
If you want to see your future, look to the mistakes made in the past,
and learn from them.
If you do not physically own and hold gold and silver, and your
ownership is in some form of paper promise, you may never own it. If
you do not know what a "stacker" is, it is time to become one, with
diligent haste. The clock is ticking.