Saturday 14 September 2013
A few have inquired about our greater focus on the charts as they pertain to the
Precious Metals, of late, a shift of which we have been cognizant. The reason is,
it suits our purpose. Our purpose is to pursue profitable trading, and telling
“stories” is not always apt, especially when almost all of them have been amply
related in the news and written endlessly by cheerleading precious metals [PM]
writers and newsletters.
Why is an analysis more focused on charts seem like such an obvious question?
Last week, we provided a list of nine of the most recognized reasons for viewing
gold and silver from a demand side perspective. There are many others you can
think of, additionally. [See: It Is Always About One Thing: Timing, click on
http://bit.ly/17Hctst} Repeating the same things is unnecessary, and those which
have been aired so frequently seem not to have had much influence on sustaining
From a totally different perspective, reminding and/or informing people about
the intrinsic qualities in owning gold and silver: rights, title, and interest should
have sealed the deal, as it were, as the ultimate reasons for acquiring and owning
both PMs. [See: When Precious Metals Bottom Is Irrelevant To Your Financial
What else is needed to enhance the strong demand side of the market, and one
that gets stronger with each passing month? Almost everyone is aware of the
disappearing gold act sponsored [in stealth hiding] by the central bankers and
abetted by lackey PM exchanges, COMEX and LBMA. Yet, on Thursday into
Friday, there was another “take-down” in gold and silver futures. Where is all
of this demand that is supposed to take price to elevated heights when it counts?
Should you believe what you read/hear, or what you actually see?
The only problem that keeps PMs suppressed is the proverbial 900 lb gorilla in
the room. It would be easier to identify that gorilla as the New World Order, [NWO],
but too many do not comprehend/accept/believe that context. People are not capable
of differentiating one’s country with the corporate government running/ruining it, and
the real power behind the corporate government.
With over half the population dependent on some form of socialized government
hand-out, and almost all of the Main Streeters overdosed on credit, for those politically
unaware, but unaware of being unaware, from where is any opposition to government
going to come?
Central banker/Lying Ben’s policy of keeping interest rates artificially low serves one
purpose and one purpose only: bail out the corrupt bankers and keep all of the failed
banks on resuscitation. The propping up of the banker’s massive Ponzi scheme is being
accomplished at the destruction of people’s wealth.
Wealth is not confined just to those in the upper 1%, 5%, or even 10%. Wealth can be
applied and defined in more ways than expressed high “dollar” figures. Health is one
that rates highly. To the people in Cyprus, Greece, Ireland, and recently Poland, and
elsewhere, bankers stealing from individual’s accounts, many of whom need what
little money they have just to survive from one day/week/month to the next, and those
amounts may not qualify them as wealthy, but the amounts mean a wealth to them.
The primary functioning arm of the NWO is control of money, and it is accomplished
through the central bankers, none of whom have been elected in any representative
fashion, but who, nonetheless run/control almost everyone’s lives. The reason why
we cannot say everyone is because those who own and hold gold and silver are truly
independent of government control over how they choose to live, financially.
Guess what bankers just did, while you were sleeping? They passed bankruptcy laws
that puts derivatives in the highest secured position. First of all, who is responsible
for the collapse of so many financial institutions since Lehman and AIG? Bankers!
They engaged in high-risk ventures, [really nothing more than scams] that blew up
in their greedy faces. A lot had to do with derivatives. Where have the trillions of
fiat “dollars” needed to save the economy gone? To those same bankers who failed
in what they created. But the unwritten law is, bankers cannot take a loss. Their
practice is to reap and keep all the gains and socialize all the losses to the public.
What are derivatives? Essentially, derivatives are a contract between two parties
dealing in equity, foreign exchange, interest rates, and recently Wall Streets’ mortgage
securitization Ponzi scheme. Who created these derivatives? Wall Street bankers.
Who suffered trillions in losses? Wall Street bankers. Who is footing the bill for
these financial disasters? The unknowing American public.
The value of the derivative market could be 20 – 30 times the value of the stock market,
in the neighborhood of $700 to $800 trillion fiat “dollars.” They are also called swaps,
credit default swaps, currency swaps, etc.
With derivatives now immune from bankruptcy laws, who secures them? Guess what
America, you do! How are they secured? By your bank accounts, brokerage accounts,
pensions, IRAs, 401ks. Remember M F Global, a few short years ago? Why did people
lose billions of dollars? That money went to Wall Street bankers who held tons of high-
risk [and worthless] derivative claims that were first-in-line for payoff because bankers
passed such a law. After bankers paid themselves for their failed losses, there was no
money left to pay those who had deposits in their brokerage accounts. Poof! Vaporized.
We are sure the bankers thank you very much for your generosity in insuring them against
all loss exposure. You did agree to it, didn’t you? The NWO dictates that you did.
Anyone with money in a brokerage account is at risk, to the tune of 100%! Got money in
a bank? Any/every deposit you make into a bank is no longer your money. It belongs to
the bank, and you are now an unsecured creditor! If the bank fails, and every single major
bank has failed, being propped up by government loans, [not money you loaned, but your
loss, anyway], your “deposit[s] is/are gone, poof, vaporized.
How does the risk is keeping money in a brokerage and bank account stack up, to use a PM
term, to owning gold at $1,200, $1,500, or $1,800, and silver at $20, $30, $40? There is
no third counter-party risk in owning either metal. None! Neither gold nor silver can go
poof on you, get vaporized, or disappear, [unless you hold it in “enemy territory” where
it can [and will be] confiscated. With gold and silver, you have 100% interest in, rights and
title to their ownership [another mention of When Precious Metals Bottom Is Irrelevant
To Your Financial Health, http://bit.ly/12Uz4Q6].
What other investment affords you 100% backing? It remains the only investment with a
history going back over 5,000 years, and it is recognized and accepted around the world.
Stop and [re]think. What does $1,300 gold mean? It means instead of requiring the old
$35 fiats, or $250 fiats, $500 fiats, you now need 1,300 fiats to purchase the same ounce
of gold that used to be just $35. Gold and silver are not going up in value, they are holding
relative value. Fiat currency has declined in “value,” and you need more and more of the
worthless fiats that the 900 pound gorilla NWO is constantly depreciating.
Who/What else can exert such “influence” at will in a PM market that is dominated by
exceptional demand and limited supply relative to the growing demand? Only the NWO
central bankers. What other positive “news” or “new” development have you heard or
read about that can rally gold and silver?
Why do they continue to be so easily manipulated to the downside, at will and whim? We
can think of no other situation or story that has not already been covered, many times over
that will cause a sustained rally in gold and silver.
As we often say, do not listen to what others are saying about the market, listen to what the
market is saying about others. And that information comes from the charts.
Write your own bullish scenario for gold, then compare it to what the chart says. Which is
to be believed, an incredible tale of demand, or the reality of the chart?
The situation is no different in silver. Do you really need another “bullish story” to enforce
your existing belief in silver or gold? If you do, you are reading the wrong analysis. The
chart says neither PM has blossomed into a bullish chart picture, and we place our beliefs
in what the charts say.
Quite frankly, we have run out of bullish reasons and simply prefer the reality of the story
of the market, always the best and most reliable source. We expect higher prices will be
forthcoming, but not in the way most PM pundits have been “predicting.” We offer no
predictions. Instead, we read what the market says and endeavor to follow accordingly.
For right now, the market is in no pressing hurry to the upside, and it continues to remain
susceptible to easy declines. The 900 pound gorilla still holds sway.