Saturday 29 March 2014
Almost all who read our commentaries know that we place the greatest importance on
reading the developing market activity, as best seen in charts, in order to have the closest
pulse on what is going on in the market[s]. The reason is because the activity found in
price and volume behavior reflects the decisions of all market participants.
Smart money leads, the rest follow. What constitutes smart money? Those with the most
knowledge and deepest pockets that control what goes on. In the US stock market, it
used to be institutional money that drove stocks. For the past few years, it has been the
Federal Reserve, through Permanent Open Market Operations, [POMO], and the all of
the QEs that have unsustainably propped up stocks.
In the Precious Metals, [PM], it has been the US and London central banks colluding to
suppress primarily gold but also the silver market, and with gold, the active suppression
has been going on for at least the last 50 years, just more blatantly in the past few. It is
for these reasons we have turned our focus toward the elites, all related to the Rothschild
dynasty, because they control all of the money. All Western money is worthless fiat, but
for as long as the masses continue to believe the “emperor is wearing clothes,” the elites
rely on people turning a blind eye and will get by with their massive Ponzi scheme.
Let us be clear about one thing, and the most important of all to never forget: gold and
silver are money, and the truest form of money. Everything else, the fiat Federal
Reserve Note, erroneously referred to as the “dollar,” the Euro, the Yen, the Swiss Franc,
and every other Western form of what passes for a country’s currency is worthless paper
money, backed by nothing but more worthless paper money. Actually, it is not even
paper anymore. Almost all fiat currencies are digitalized, paper being a small percentage.
If you ask most people if they know that fiat currency has no value, they will agree. Yet,
those very same people continue to use the intrinsically worthless paper as though it
actually had value! In other words, people are willing to imagine the worthless fiat has
the [lack of]value the issuing central bank says it does. The kicker is, everyone who uses
fiat-with-no-intrinsic-value is a smart person.
Can anyone explain to their 8-year-old son or daughter what fiat currency means?
Parent: “It is paper money used to buy and sell goods and services, but it is not really
Son/Daughter: “If it is not worth anything, why use it, and why do other people accept it?”
We cannot justify a worthwhile response without it begging the question, “If everybody
else jumped off a cliff, would you, too?”
Parent: “Where is your new bicycle?”
Son/Daughter: “I sold it for $100. See! This man gave me a piece of paper and wrote
$100 on it.”
Parent: “Are you crazy! Just because someone tells you a piece of paper is worth $100
does not make it true.”
This would be a good time to stay away from a mirror.
Living in America, prior to the 1930s, if you went into a bank with a US Treasury Note
of any denomination, you could exchange it for gold or silver, for all currency was
specie-backed, even the Federal Reserve issue, which circulated side-by-side with US
Treasury Notes, [those issued by the US government and not the private corporation
known as the Federal Reserve].
After the elites forced the US into bankruptcy in 1933, when FDR declared a bank
holiday and shut the system down for several days, when the banks reopened, it was
the foreign-owned Federal Reserve that was in charge of the entire banking system,
finally. [We add “finally,” because that was the objective of the Rothschilds for over
50 years even before 1933, actually longer, but it gets too complicated to explain.]
A man goes into a bank, prior to 1933, and hands over a $100 US Treasury Note, or
even a Federal Reserve Note, which also was specie-backed, at the time, and asks for
$50 in gold and $50 in silver. No problem.
Sometime after 1933, a man goes into a bank with a $100 Federal Reserve Note and
asks for $50 in gold and $50 in silver.
Banker: “Sorry, sir. There is no gold or silver backing for your $100. Would you like
two $50 Federal Reserve Notes, instead?”
When the Federal Reserve Act was passed, two days before Christmas in 1913, when
most politicians were home on holiday, the Act was passed with no opposition by the
remaining chosen politicians who stayed on, and were well paid to do so by the
Rothschild-backed bankers. And so the most treasonous act against the Constitution
Here is how the rest of the plan was carried out: The Federal Reserve issued its own
currency, also specie-backed, to circulate along with the US specie-backed Treasury Notes.
This went on for a few decades, which is a short period of time for the Rothschilds. What
happened was, people saw the new Federal Reserve Notes, along with Treasury Notes, but
it made no difference because both were equally backed by, and could be exchanged for
gold and silver on demand, at any bank.
After 1933, when the Federal Reserve took over control of the money supply, it began to
slowly withdraw all US specie-backed Treasury Notes and had them destroyed! Nobody
paid attention to the disappearance of the US Treasury Notes because Federal Reserve
Notes were the same thing, in their minds, and in reality. This was all planned, decades
in advance. It was a part of the Rothschild formula for well over a hundred years even
Something else happened very gradually, over time, and almost immediately after 1933.
All Federal Reserve Notes that were specie-backed were also withdrawn from circulation.
All of the US Treasury currency issued by the United States government had already
been removed and destroyed. All that was left were Federal Reserve Notes, backed by the
full faith and credit of the United States. Fiat. Again, people had come to accept Federal
Reserve Notes in circulation at the same as Treasury Notes, so when all that was left were
the Federal Reserve Notes, it did not matter because people could still buy and sell
whatever they wanted and did as in times prior to the financial bait-and-switch.
All the gold and silver owned by the United States government was stolen, taken by the
elite-owned Federal Reserve central bank. The central bank controlled the government
and the media. The public was fed the kind of news that never let on to what happened
during those decades, and the public has since been dumbed down even further in all the
other decades to date.
In the 1940s, ’50s, and ’60s, one often heard the expression, “The dollar is as good as
gold.” That was another Rothschild-inspired idea to implant in the minds of the people,
and it worked. Another popular expression related to the gold stored in Fort Knox. No
one ever talks about Fort Knox, anymore, and hasn’t for many decades. Why not? All
the gold is gone, and the elites do not want to draw attention to what is not there.
Does the US own any gold, at all? Absolutely! But only on paper, if you believe the paper
on which it is written. Has anyone seen any hard evidence of gold stored at Fort Knox?
“Here it is, right here on this paper.”
Can we see the actual physical gold?
“That would be inconvenient, but here it all is, and our ledgers are audited every year.”
Hello, Germany, can you hear us now?
A bit of irony that the same people who hold and control Germany’s gold got their start
in Frankfort, where the wooden”red shield” sign used to hang over the door of Mayer
Amshel Bauer, he who changed his last name from Bauer to “Red Sign,” or Rotschild.
If a group, not just any group, but one that controls all of the money in existence in the
Western world, and also controls all of the governments in the Western World, [almost],
is it that far a stretch of one’s imagination, [especially for those who believe in paper fiat],
to believe that this group of elites can just as easily control the price of gold and silver?
They have for many, many decades, and do so to this day. It may well be that they have
had to sell all their holdings to rising Eastern countries, but their grip on nations, and
certainly on the powerless people who inhabit those nations is stronger than ever. It will
take more time and much more effort to ever get those in power to give up that power.
When we look at the charts, despite the gold community pundits declaring the shortages
of and the unprecedented demand for both gold and silver, tell us where in the charts
there are any indications of the fundamentals reflecting what so many assert as the “true”
value for gold to be in the $5,000 – $10,000 the ounce range, or silver in the $100 – $300
Here are the charts, once again, and our comments. If you see extraordinary bullish signs
within them, let us know. We certainly keep looking, but cannot find any needle in these
For every valid reason that so many others are advocating the purchase of physical gold
and silver, demand, shortages, Chinese buying, exchange disappearing physical, etc, etc,
we echo those sentiments and suggest/advise to keep on buying, but hold it personally.
However, for more salient reasons, such as discussed in our last several commentaries,
as well as this one, there are far more important reasons to buy and hold gold and silver.
They are money.
At some point in the future, and no one knows when, no one, but eventually the
unsustainable debt generated by the United States, BIS, IMF, and other central banks,
[all of which are insolvent], will collapse. The elites will fight the collapse to the bitter
end, likely forcing war to cover their duplicity, and it will get real ugly, maybe even
downright dangerous for daily living, not to sound alarmist. One can hope for the best
and be prepared for the worst.
Thee is one more trading day left for the monthly charts, but we do not expect there will
be any material change, either way, that will alter what is showing right now. The monthly
chart reflects the makings for change, but the trend is still down. Forget about $5000 or
higher gold, for now. It ain’t going to happen any time soon.
The breaking of a down sloping TL does not mean the trend has changed. All it means is
that the trend has weakened. Price may have stopped declining, but it could spend many
more months moving sideways, and not up, at all. Do not place much emphasis on such
an event as a broken TL.
The bearish spacing has not been challenged. The current swing high rally failed to reach,
the $1420 -$1430 area, but developing market activity is showing a few clues that may
prove more bullish than the market appears.
Within the down channel, the December low stayed above the June low, and price did not
even come close to the lower channel line. Instead, price held firmly within the channel
and above the 50% portion of it, a sign of strength.
From the December low, gold had a persistent rally for several days straight. March, last
bar on the chart, has the look of a key reversal. A key reversal is when price makes a new
recent high and then reverses to close lower than the previous bar. It can often be a red
flag for longs. However, note the volume for March. It is the highest in 8 months, and it
produced a lower close, ostensibly negative.
It may turn out to be negative, but for now, our read is that the increased volume, [effort],
did not produce much in the way of results for a market in a down trend. Yes, the close
is lower, but the low and the high are higher than the February bar, and the close did not
even make it past the half-way mark of the prior range.
The overall chart is still negative, but within that context, there are these signs of potential
change. If that were true, then the weekly chart should support this premise.
While the weekly chart is not bullish, it is less bearish than it has been, for price continues
to move sideways and not down. However, the other bearish signs have not yet been
compromised, like bearish spacing and the failure of the rally to extend closer to the last
On a positive note, the increased volume over the previous week, 2 bars ago, is a plus, as
we read it. The range is slightly smaller than two weeks ago, so the increased volume did
not produce as much as one would expect in a down trend situation. The effort of buyers
for the last 4+ weeks was erased, but price did not fully erase the wide range rally 7 bars
These observations are not anything in which to get overly enthused, but they are positive
signs when sellers should be in total control.
Just as gold rallied persistently during February and half of March, it has also persistently
declined for 10 days, since the last swing high. Support can be anywhere from Friday’s low
to the 1240 area, for now. The key, over the next few months, will be to see how far the
next rally can carry, and then, how much of that rally gets corrected.
The demand for silver is much less than that for gold as silver continues to disappoint, at
least for those of us wanting higher prices. The charts say otherwise. March is an inside
month. It is hard to draw any meaningful conclusion from that, except to say the close is
on the lower end, telling us sellers remain in control.
The picture does not get any better for the weekly chart, except to mention price is at
important support, and the range for March is relatively small. The narrower range tells
us buyers are meeting the effort of sellers and preventing price from continuing lower.
It could lead to a rally, nest week.
It is not a positive sigh that the current decline has intruded as far into previous support as
it has. It is a sign of weakness that buyers are not defending support very well. Also, the
breaking of the lower channel line puts silver into an oversold condition, and oversold
became more oversold. Price put in its first higher close in 9 trading days, and even the
volume increased. It is not a game changer, but when all else appears negative, a little
light shows up.
Buy the physical, and continue to avoid the paper from the long side, for trading purposes.