Saturday 13 July 2013
Do markets send messages? Absolutely, and they are there for anyone and everyone to
see as they develop. Most people like to read news about increased demand for gold and
silver, record purchases for silver eagles, etc, etc, etc. The headlines over the past several
months have teemed with such information, raising expectations, but not raising the price
either of gold or silver.
More recently, there is “news” about market bottoms, eminent turnarounds, a renewal of
where gold and silver can reach, [once the central bankers deplete their gold stocks; once
the COMEX fails, and more etcs]. Seems like not as many are paying attention to the
most reliable and obvious source of all, the market price itself.
But it’s manipulated and irrelevant. Manipulated? Without question. Irrelevant? Not
so sure. If the price of gold and silver, as quoted on the New York and London exchanges
is so irrelevant, then why is it still so widely used, and why is the rest of the world going
along with the exchange pricing mechanism? Minds are being more manipulated than the
For a while, premiums shot up, but the actual price for the physical did not, at least not
for daily buyers that are non-sovereign countries. We do not think physical demand is
the issue. The man/woman on the street of any country in the world is buying whatever
they can afford. As price declines, people buy more.
China, Russia, India, and others, as countries, are taking whatever is available, so demand
from sovereign sources have all their trucks backed up to the loading docks of whatever
Western central bank[s] is selling. These buyers are more than happy to see price decline.
The supply issue is two-fold. One is the paper market, which apparently still has a lot of
longs remaining: gold funds, primarily. The other issue is the central bankers themselves.
They have more political power to use than many think otherwise. Yes, the vaults may
be near-depleted, and yes, they cannot make good on any deliveries, but who is going
to force them to cry “Uncle?” They also control the money supply, and if anyone wants
to play hardball with them, they will play harder and dirtier ball back. Too many
continue to underestimate they staying power, no matter how weakly perceived they are.
All we know is that almost all of the precious metals experts and newsletters/videos, etc,
have been wrong for the past nearly two years. Gold is not at $5,000 or $10,000, not
even $2,000. The same for silver, as it shocked so many when it went back to $18.
Buying gold and silver is like buying a house. Everyone needs a roof over their heads.
The price of housing has dropped considerably since the housing bubble burst. Did
everyone sell their house because its value dropped? Absolutely not. One still needs
a place to live. Precious metals are a form of, let us call it “wealth protection,” without
getting into semantics, where one needs to store value. Gold has a history of proven
value over centuries. Paper fiat has a proven failure for over centuries, as well.
Which would you rather own?
Have the precious metals decline gone down farther and last longer than most expected?
Yes, and yes. Will both gold and silver go back up in value? Without question. So why
be concerned where the current price levels are? It is the last bargain of a lifetime, maybe
even for generations. Can the price of both still go lower? Based on the charts, yes. Will
they? Possibly, but that remains to be seen.
The New World Order, [NWO], is alive and well. It is actively exerting control over
smaller European countries, and dictating policy for the entire region. The NWO has been
operating under the radar in the bankrupt United States since 1933, so Americans remain
willingly oblivious to its stealth forces and continue to believe they live in the “Land of the
Free,” despite the Stasi-like conditions.
The point of mentioning the NWO is to let everyone know that it is their intent to enslave
the world. How do they do that? By destroying wealth. Prior to the Roosevelt 1933 gold
confiscation scam, Americans used to own gold and silver. It was a form of wealth, and as
long as they had it, they were not dependent upon the government. Hence, the “turn in
your gold [wealth], so we can control you and make you dependent upon the government
for your existence. It is no accident that people are dependent upon Social Security, and
more households than ever receive food stamps. Destroy wealth; create dependency.
Fewer living Americans have ever held a gold coin, let alone own one. Americans live on
debt, in the form of fiat and credit cards. They are NWO slaves, just without realizing it.
The other form of wealth? Housing. Back in the 1920s and 1930s, few Americans owned
a house. Property owners were farmers. The NWO-manufactured Great Depression saw
countless farmers lose their farms to the banks. What did most Americans just go through
over the past few years? A massive dislocation of their homes through foreclosure by
banks submitting fraudulent complaints and improper assignments.
Of course, this was after bankers created the ability for anyone who could fog a mirror to
buy a house. It was planned that way. Who are now the biggest property owners in the
country? Banks. Those who lost their property lost their last form of wealth, and now
they, too, are dependent upon the NWO government.
So, if you are worried about the [forced] decline in the “value” of gold and silver, would
you rather hold worthless fiat and credit card “wealth?” Everyone is free to choose. Well,
fewer and fewer people are actually free, except in their captive minds.
Buy gold, buy silver, and hold it yourself. If you do not hold it, you do not own it. Period.
If you hold gold and/or silver in paper form, that is what you own…paper. Everyone is
free to choose.
Even an atheist should have little trouble keeping the faith in gold and silver, given the
highly unreliable alternatives. What about the backing of the “full [misplaced] faith and
credit [maxed out several times over] of the government? Ask the city/county pensioners
from Detroit or Camden how that is working out? They may not see even a dime of what
was “promised” to them.
The charts continue to defy the expectations for higher PM prices, at least for now. They
are fully reflective of the actual existing price until proven otherwise:
We show why the odds favor a rally from here, which can still fail to materialize for as long
as the “money changers” remain in control. It is too soon to know if PMs have actually
bottomed, but they may be in an early bottoming process. Bottoms can be short-lived,
or they can take months/years. The market will keep you informed as to which. Maybe
not a satisfying answer, but one that deals with reality.
The weekly chart gives more detail on why a bottom, of some degree, may be forming.
What makes it difficult to be more definitive is the control central planners still have
over the markets, and they want price suppressed, or they lose control, and not just of
You can’t get tomorrow’s news today, but you can get market guidance today from future
day-by-day activity depicted on a chart. Can you see the value in that? More can “see”
“value” in gold and silver than can see the value of following developing market activity.
Belief in expectations is far more compelling than believe in reality, which is all a chart is.
What follows is chart detail, but it captures the current character of the market, which is
how the future price will develop, according to the clues in price and volume. In the box,
note how price declined with such Ease of Downward Movement, [EDM], on the higher
volume bar, left side, call it bar 1. The next 3 bars show a weak rally effort.
Weak rallies lead to lower prices, and lower prices followed, in bars 5, 6, and 7. However,
there is a distinct change in character. Volume increased on these low bars, and the last of
these bars produced a rally on relatively high volume. This is a red flag, a warning for the
bears. Buying has become clearly evident for the first time while the rate of descent down
from one swing low to the next also shortened.
The 4th bar in July was on increased volume to the downside, but price held above the
effort from buyers at the end of June. While gold has rallied back to 1300, note how small
the bars are, a more labored rally, and the location of the closes for each. None of the
closes are particularly strong, a lack of demand.
The rally of last Thursday had the highest up volume, but the close was mid-range, a draw
between buyers and sellers, saying sellers were present at a resistance area. Friday’s lower
close was on less volume and a smaller, inside day bar. It could be that sellers failed to
take advantage and that leaves the door open for another opportunity to challenge a minor
If gold cannot rally above the minor resistance level, price will turn lower and either retest
the end of June low, or make a lower low. The how of any rally or decline will tell us what
What we have yet to see in either gold or silver is a change in trend. Price will continue to
work lower, or move sideways until demand shows up, and it has not, contrary to the
demand for the physical reported in the news and newsletters. That same unprecedented
demand is not showing up in the charts, for a reason, whatever it may be.
As with the daily gold chart, the highest volume occurred at the recent lows, and the
volume increase is always dominated by smart money. The rally, since the high volume
low at the end of June has not translated into a sustained rally, and that is now of
The last two trading days could be a form of buyers absorbing sellers before rallying above
resistance, but that has not been confirmed, obviously. Buyers are back on the defensive,
and next week could be very informative.
Keep buying and holding physical gold and silver for reasons unrelated to current prices,
although current prices allow you to buy more for your fiat currency. What a deal! Stay
away from the long side of the paper market. The number of profitable longs over the past
almost two years is less than small. Always respect the trend, and use the knowledge if the
charts to your advantage.