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Silver And Gold - Keeping A Perspective. Need More Time

Sunday Evening  4 December 2011

 We have mentioned cognitive dissonance several times, so starting
with a definition would be in order, and this one is provided by Frantz
Fanon:

    "Sometimes people hold a core belief that is very strong. When
     they are presented with evidence that works against that belief,
     the new evidence cannot be accepted. It would create a feeling
     that is extremely uncomfortable, called cognitive dissonance.
     And because it is so important to protect the core belief, they
     will rationalize, ignore and even deny anything that doesn't fit in
     with the core belief."

 When people hold core beliefs, especially false ones, they will
not accept the contrary truth when confronted with it.  One of our
favorites is the notion that a fiat Federal Reserve Note is a "dollar." 
Even though the private corporate Federal Reserve has the word
printed on its fiat, it is pure deception.  A fiat currency is backed
by nothing.  In truth, it is no different than Monopoly money, both
being equal in intrinsic value, which is zero.  The "value" of any
fiat Federal Reserve Note exists only in the mind, for those who
choose to so believe.  A real United States dollar has been forced
out of circulation by the Federal Reserve over a period of decades,
pulling a massive Ponzi scheme bait-and-switch, and it has worked.  
This does relate to gold and silver, because all fiat currencies fail,
while gold and silver have maintained the most reliability for their
PROVEN and accepted intrinsic value, all over the world and
throughout history.

 There are several charts on both gold and silver, but some
comments for context precede them.  The content flies in the face
of conventionally held beliefs, but we can only comment on what we
know.  If anyone would like to see into the future, consider this...the
recent theft of private funds by MF Global, [which has not evoked
screams and hollers from the government or any regulatory agency
that would lead to criminal indictments.  What you learn from this, in
addition to all the derivatives fraud is that in the world of banking,
there are no criminals, but thank you Occupy Wall Streeters just
the same.], and now Portugal has raided pension funds, stealing
from people's long-term retirement funds to "fix" unfixable short-term
deficit needs, you have a picture of what to expect here, at some
point.  Anyone with retirement funds in any banking institutions...in
fact why limit is to just retirement funds, ANY funds in a bank are at risk.

 The United States is fast approaching another presidential election,
and the turn-coat incumbent, who was funded and elected by the "graces" [money] of Goldman Sachs, will stop at nothing to get
re-elected.  There are no in-between-the-lines interpretations here. 
Read it that Lying Ben, [the Bernank], will keep the proverbial printing
presses running 24/7, and ruining the fiat financial system, [destroying
the economy, already evidenced in the news every day/week].  You
do not read about this or hear about it from the media, local or national. 
What is reported is all about central bankers endeavoring to "save"
countries drowning in debt by providing  [forcing] them to take on yet
MORE debt.

 How has that been working?

 In a recent article on the Euro, we wrote:

     "For those endeavoring to follow the lies put forth each day by
     central bankers, the hyenas of the world of finance, and the 
     leaders for the various countries who demonstrate with unwavering
     clarity that they haven't the slightest clue as to what they are
     doing, the comics page has reached the front page of all
     newspapers."

 How ironic that it is from comics that now provide the reality of what is
going on.  [As explained by the cartoon Bears,
http://www.youtube.com/watch?v=jLt05sN7vK0]

 How this all relates to silver and gold is showing how the world is
coming apart at the financial seams, purposefully brought about
the the New World Order financial elite seeking to rule the world
by destroying each country in the process through the debasement
of its currency, aka the Rotschild formula, for those who may know
the history of how that dynasty become financiers to the world. The
Civil War was not about slavery, it was all about money.  It was the 
English Rotschilds who financed the North, while the French
Rotschilds financed the South.  We digress, but the clear
beneficiaries of all this financial deception are gold and silver.

 There is a reason why those in the precious metals community have
been so adamant in arguing for stratospheric prices "soon to come,
as they hope.  That may eventually prove to be true, but no one
should ever underestimate the central banker's stranglehold on all
financial systems, and they are not about to let the world off the hook
until they succeed.  The point to our advocating buying AND holding
physical gold and silver is to be prepared for the inevitable.  When
will the inevitable be?  No one can ever know, but better to be a year
too early than a day too late.

 A look at charts provides a graphic pictorial of ALL that goes on in
the world, for charts depict the distillation of all buyers and sellers
who actually make decisions in the markets and not just offer
opinions on them.  So here we go with our opinions...[We personally
buy physical silver and gold, regularly, but the physical market is
different from the futures].


 Two inside months, after the sharp September decline shows how
silver has to overcome a lot of  overhead selling resistance, and the
only way to do that is to absorb all the previous selling efforts. There
are two conflicting observations.  1. No further downside since
September, a plus, and 2. very little upside in the effort to recover,
at this point, not a plus, but not a negative, either.

 The question to be asked first is, what is the trend?  The trend is up
on the monthly chart.  What is so important to identifying the trend and
knowing it is up, places the burden on sellers to prove control.  The
fact that the trend is up means buyers have already met that burden. 
While the rally appears to be weak, we can also say that sellers are
not, or are unable to press the market lower.

SIH M 4 Dec 11

 This longer perspective of a weekly chart shows the concept of
spacing.  When the last swing low, in January of 2011, remains above
 the last swing high, early 2008, it creates a gap called spacing.  What
it says is that buyers were willing to buy at the last swing low levels
without waiting to see if the last swing high area would be retested,
and that is a bullish statement.  Additionally, the most recent swing
low from September is a higher low, and that, too, is a bullish statement. 
Next, we take a closer look at another weekly silver chart.

SIH W 4 Dec 11

 The $33 - 35 area, +/-, is important for silver.  Notice how we have
drawn a flexible "horizontal" support/resistance line to more accurately
reflect reality, as opposed to the straight line most analysts draw. 
This shows the resistance that silver must absorb and overcome
before it can work higher.  It also points out how, despite all the calls
for considerably higher precious metals prices, due to the inexhaustible
printing of fiat money around the world to prop up and disguise the
failed central banking system, one cannot underestimate the power
and ability for the world financial powers to keep their Ponzi scheme
alive.

 The charts are saying, not so fast.  It may take many months, even
a few more years before silver and gold prices reach higher levels...
at least, that is more a likelihood than otherwise, for now.

SIH W-2 4 Dec 11
 

We lost our first weekly gold chart.  It shows an even stronger
spacing condition than silver.  The chart below shows a similar, but
more bullish pattern than silver from last week.  Both metals had a
lower week and relatively poor close on increased volume.  The
smaller range down on increased volume effort should have
extended price lower.  The reason why price did not extend lower on
the increased effort was because buyers were absorbing whatever
sellers were offering.  This goes back to our premise on the up trend
of monthly chart.  Sellers have to prove themselves, and last week
they failed to do so when they had the advantage to push price lower.

 What we see for both gold and silver is reaccumulation from buyers
doing what they have to do, and that is to absorb the previous seller's
efforts before any further markup can occur.

 

GCG W-2 4 Dec 11

 The daily charts do not show an uptrend.  In fact, you see a clearer
picture of all the overhead selling resistance that must be overcome,
first, and that will take some time.  The last three trading days may
appear negative with the last two days closes on the lower end of the
range.  We see that more as a lack of demand than it is sellers being
in control.  If sellers were in control, price would have been lower.
Despite those two days of selling effort, the gains made on a wide
range bar to the upside, and on strong volume, have held.  In a 
sideways to lower market, that is a plus.  All of this can change on
Monday, but we can only judge on what is known.

 We point these observations out to show the developing character
of the internal market composition, and it looks more like accumulation,
as mentioned, than it does distribution, where sellers would be dominant.

SIH 4 Dec 11

 The daily gold chart is similar, but relatively more positive, but even
at that, this market also needs to absorb the sellers above the 1750 -
1800 area, and that will take time.

 Both markets need more time.

GCG D 4 Dec 11