Saturday , 10 December 2016


Noonan on Gold: “Be a lemming or be a stacker”

Do what the smartest country on the globe is doing (China) and buy andgold rising hold as much physical gold and silver as you can. Why? Because you will be up the proverbial creek without a paddle if you don’t have either metal.  

By Michael Noonan (edgetraderplus.com) – An edited ([ ]) & abridged (…) version of the original article to ensure a fast & easy read,

Should you be concerned that the government will take back, like it did in the 1930s? No.  There is not enough gold in the hands of the public to matter.  Besides, pushing for a ban on cash and forcing people into total government (read that as elite) economic control by having only a form of digital currency on deposit in a bank pretty much limits what you can do to preserve what you have.

Gold and silver will likely become illegal to use in transactions, and there will be public pressure to rat out those who have/use either PMs so you have a choice:

  • go along with the elite/government program and have none, and “officially,” you should not (admit to) have any,
  • or keep accumulating whatever you can in order to preserve your own economical survival.  There may be a black market only, or a form of bartering, but rest assured, having gold and/or silver will be the best form of financial insurance you can have.

Be a lemming or be a stacker.  One always has a choice, although choices are getting harder and harder to make, independently.

We are at/near the end game for fiat currencies, in many ways.  They are always issued by and under the control of some form of governmental entity, and it could be foreign, at some point, not just domestic.

You should not be concerned about price in buying PMs because, after all, how do you set a price on financial independence, on fear of economic takeover by forces beyond your control?  If you do not own gold now, that may not be an option, sooner than later.  Either imposed government restrictions, and one can almost rely on that, or if the price of gold and silver were to be reset higher, possibly even overnight, at some point, it may be out of reach to pay $5,000 or $10,000 a troy ounce for gold, $200 or $400/ozt for silver.

Keep on buying.  Timing is less important than having.  Literally, better a year or two too early than a day late.  Deal with the certainty of today, such as it is.

We talked a little about these issues in an interview conducted by Rory over at the Daily Coin, last Thursday.  He does an excellent job of interviewing the top people in the gold and silver market.  You can hear the interview here.

In terms of the paper market as an inexplicable barometer for the gold and silver price, we see the following.

The trend is the single most important factor in defining any market.  

Gold

For gold, the down trend may be changing, but a change has not yet been confirmed.  We keep saying that, and it is not what most people want to hear.  People prefer to be told “The bottom is in!” “Gold is going higher, right now!” etc.  To say either would be misleading, and there have been many, over the past few years, saying both.  The market says otherwise, and that is the only voice we heed…

If December 2015 is to mark the bottom of the decline in gold, we need to see a higher low reaction that successfully retests, and thereby confirms, the bottom is now past tense.  We called February as a potential trend changer, see here, and then gave a follow-up analysis last week, see here, if you missed either.  This week is an ongoing extension  of both.

What we said recently is that the current rally in gold, starting from the December 2015 lows, will eventually undergo a natural and necessary correction that will be a retest of the recent lows, and if the retest holds , it will be confirmation that a trend change is finally underway.

Our belief that the market sends the most reliable information, based on the interaction between price and volume, suggests a corrective reaction may be starting next week. The January 2015 swing high had the highest volume of all the recent swing highs.  That means sellers were the most active, based on volume, and they will defend that price level.

[To read the original article, complete with a number of charts on gold and silver, please go here].

Silver

Silver, for all of its fans and followers, ourselves included, still remains in a down trend, according to the kind of developing market activity we use as a guide.  The last LL, which is December, was not much lower than the August swing low, and the inability to extend price lower is considered a plus.  The largest volume bar, middle to late February, did not lead to further downside follow-through, and we add that observation to the smaller swing low to build on the potential signs for change in silver, not otherwise seen in performance.

There are times when there appears to be a lack of definitive clarity, and that has to be respected just as much as when price behavior is more readily apparent or defined.  In the current instance for silver, all one can do is wait for a clearer outcome.  There are some growing signs for change, but more is needed in order to validate what we see, for if there is no validation, silver will continue lower.  It is that simple, not always or necessarily easy, but why make it more difficult?  Go with what is, and if what is is not clear, that is the market saying to exercise caution.

Neither gold nor silver, on these paper futures charts, are saying that the fundamental strength underlying the physical, is about to take a dramatic shift to the upside.  This tells us that the manipulation is still the controlling factor.

Disclosure: The original article was edited ([ ]) and abridged (…) by the editorial team at munKNEE.com (Your Key to Making Money!) to provide you with a fast and easy read.
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