Thursday , 20 October 2016

Noonan: “Gold Appears Poised To Continue Its Rally”

…The world is drowning in debt created by the central bankers and force-fed to states like a goosefine silver fine gold being fattened for foie gras…Always, always follow the moneyand, as always, the best defense against the global uncertainty are gold and silver holdings…[and here’s what the charts have to say about the current performance of gold and silver].

The comments above and below are excerpts from an article by Michael Noonan ( which has been edited ([ ]) and abridged (…) to provide a faster and easier read.

Gold – Weekly Chart

We have been looking at the 1395 area as a potential stopping point for the current rally that has been underway for the past few months.  Last week was a smaller range, but the close was near the high so there is no evidence that sellers are overtaking buyers for at least a correction.

GC W 9 Jul 16

Gold – Daily Chart

…There was an early intra-day spike lower on Friday, but the market recovered to negate the early selling effort.  For now, gold appears to be poised to continue its current rally.  That may change on Monday or later in the week or even a week later.  The point is, until a correction begins, let the market prove it by price and volume activity.

GC D 9 Jul 16

Silver – Weekly Chart

There has been a clear change in market behavior for silver, and it is to the upside as the rally from May to present shows on the chart. There is really nothing about this chart that addresses a reason not to be long the paper futures.

SI W 9 Jul 16

Silver – Daily Chart

Friday’s attempt to take price down failed very quickly evidenced by the just as fast recovery that extended for the balance of the trading session.  Last Tuesday’s spike high needs to be watched for potential resistance, but even Friday’s intra day sell-off was a weak reaction overall, on the daily chart.

SI D 9 Jul 16

Gold:Silver Ratio

Silver continues to gain relative to gold, as we have been saying, and expectations are for the gold:silver ratio to favor silver.  Where it was 84:1 a few months back, last week the ratio reached 68:1  Expectations are for 40:1 to as low as 15:1 possible.  When, and if, that occurs, it will then be time to switch at least a portion of one’s silver for gold. Playing the  ratio at extremes is a great way to increase one’s physical holdings without having to sell. There are transaction costs, to be sure, but the net gain makes it worthwhile.


Anyone with the financial capacity to buy and personally hold physical gold and silver should continue adding to their holdings.  Those who own the physical metal will begin to feel more secure with their commitments as the fiat currencies will continue to require more and more of the fiat to make purchases, and the fiats will also lose their…value with respect to each ounce of gold and silver.

The price of each metal is not going up.  The measure of the number of fiats needed to buy the metals will grow ever more as each country’s fiat issuance becomes increasingly debased.  That is when the power of holding gold and silver will be felt the most.

Disclosure: The above article has been edited ([ ]) and abridged (…) by the editorial team at (Your Key to Making Money!) to provide a fast and easy read.
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