Wednesday , 23 August 2017


Noonan: “A Strong Rally In Either Gold or Silver Is Not Imminent – Expect More Of the Same”

gold-silver

There are many, and we fall in this camp, who associate gold with an inherent preservation of wealth.  This has been true throughout history but with intervening failures during some time frames.  Failure may not be the most apt expression, but many detractors are happy to point out those times when gold did not retain its status as a wealth preserver and, in fact, losses were on the table for many who paid a price higher than for what their gold was sold.  It happens.  The net result of gold being a wealth preserver, however, holds true, but with periodic, and some times substantial, yet temporary, reversals.  This time will be no different.

Value is subjective, reflective of one’s feelings or opinions.  In the minds of those who value gold, throughout the ages and around the world, this precious metal is deemed to have an intrinsic value superior to most other assets.  The well-used adjective, intrinsic, is also subjective, construed as essential, belonging naturally in its association with gold. In the end, “intrinsic value” is elusive, a figment of one’s mind.

Price is objective, not dependent upon one’s feelings or opinions for price is an actual number.  The subjective value of gold is somewhat intertwined with the objective price of gold through the natural laws of Supply and Demand.  The latter are a function of what is available (demand), in relation to the desire to have what exists (supply),  The desire to acquire can be greater or less than what is available, and that is what eventually determines price…

Debt around the world is in the trillions and has never been higher at any time in history.  Even worse, financial derivatives are 10 to 100 times greater with no hope of ever being able to control them once the markets reverse to the downside…

Financial Armageddon is waiting in the wings.  At some point, it will be unable to be controlled and financial disaster will prevail around the world.  At that point, the price of gold will no longer be in control, and it will become subservient to the value of both gold and silver…

Who will survive?  One group will be the owners of physical gold and silver.  Of course, they will be subject to confiscation, theft, and government control, among others.  That will be a small price to pay for having preserved and, more than likely, greatly enhanced the value of their holdings.  Trade and barter have always existed, and the demand for concrete, as opposed to paper or digital (non)-“assets” ensure value will prevail.

When will that process begin? Unfortunately, that never-ending question has no viable answer. It will not happen one day sooner than when it begins, and that is not as nonsensical as it may seem…and now to the charts.

Gold: Monthly Chart

The actual monthly close will be on Monday, but a single day is not likely to materially alter the chart interpretation. The takeaway from this and every other time frame is that a strong rally is not imminent.  In fact, we are more likely to see more of the same. The potential for positive change always exists, but until we can see such change developing on the charts, more sideways activity will continue.

GC M 29 Jul 17

Gold: Weekly Chart

TRs (Trading Ranges), are the least telling as to direction.  Right now, price is almost at the center of the TR and can go in either direction without changing the TR, at least until there is a decisive breakout, either way.

GC W 29 Jul 17

Gold: Daily Chart

More of the same…nothing revealing.

GC D 29 Jul 17

Silver: Monthly Chart

Silver remains weaker, relative to gold.  For July to prove its potential for change, price needs to follow through to the upside, or, at a minimum, have a shallow correction.

SI M 29 Jul 17

Silver: Weekly Chart

The comment on volume in the chart is the most positive statement we can make.

SI W 29 Jul 17

Silver: Daily Chart

Why say more than what the chart clearly reveals?

SI D 29 Jul 17

Financial Armageddon is waiting in the wings.  At some point, it will be unable to be controlled and financial disaster will prevail around the world. Who will survive?  One group will be the owners of physical gold and silver. Trade and barter have always existed, and the demand for concrete, as opposed to paper or digital (non)-“assets”, ensure value will prevail. When will…[all this] begin? Unfortunately, that never-ending question has no viable answer. It will not happen one day sooner than when it begins, and that is not as nonsensical as it may seem.

The comments above are edited ([ ]) and abridged (…) excerpts from the original article by Michael Noonan

Scroll to very bottom of page & add your comments on this article. We want to share what you have to say!

Previous Articles By Michael Noonan

 1.  Noonan: “Charts Give No Hint Of A Change In The Ongoing Downside Pressure On Gold & Silver”

There does not appear to be any hint of a change in the ongoing downside pressure for gold and silver. Confirmation of a change in trend will only come after a higher high above 1300 from 2016, as seen in this weekly chart below.

2. Noonan: “Neither gold nor silver are in a position to initiate a substantial rally”

 …The paper markets…have had a surprising rally over the past month, one that has taken us by surprise, but we are not convinced it will continue.  The only caveat in making that assessment is the fact that, at some point, gold and silver will not look back and will do nothing but accelerate in price.  However, that condition should exhibit …

…Those concerned about the current low prices for gold and silver – prices that defy logic, defy supply, defy demand and show no signs of a turnaround, yet, according to all the charts – are playing a fool’s game. Instead, they should be doing everything possible to have and accumulate physical possession of them. China, Russia, India, even central bankers are all amassing as much physical gold and silver as is possible. Take a page from those who rule and do the same. Accumulate whatever you can, while you still can.

For as much as we favor – and expect – eventual higher prices for gold and silver, the charts do not indicate it will be any time soon. The following charts show you why.

Thanks for reading! If you want more articles like the one above visit our Facebook page (here) and “Like” any article so you can get future articles automatically delivered to your feed. You can also “Follow the munKNEE” on Twitter or register to receive our FREE tri-weekly newsletter (see sample here , sign up in top right hand corner).

Remember: munKNEE should be in everybody’s inbox and MONEY in everybody’s wallet!

Leave a Reply

Your email address will not be published. Required fields are marked *