Recall how many were calling for a huge rally in gold and silver in 2013, repeated to no effect in 2014. In late 2013 and the first half of 2014, we began saying that the end of 2014 will not look much different from 2013, for PMs. At no point since, have we been advocating a change in the 4 year down trend, extended into 2015, and unless or until there is a change in market behavior, 2015 may similarly pass unfazed. Here’s why.
The above introductory remarks (and the comments below) are edited excerpts from an article* by Michael Noonan (edgetraderplus.com ) originally entitled Gold And Silver – Too Many Are Still Getting It Wrong which can be read in its entirety HERE complete with charts on the U.S. Dollar Index, Gold and Silver.
Why Do Central Bankers Continue to Suppress the Price of Gold & Silver – Here’s Why
Central bankers have had an agenda of suppressing the PMs markets in order to preserve the fiat “dollar” as the world’s reserve currency. This has not changed even though:
- Specialized Drawing Rights (SDRs) [could] become the next reserve “currency” as being pushed by the elites and the IMF but, keep in mind, SDRs are another form of a fiat currency no matter how well the lipstick is applied. Even if the Chinese renminbi is included in the SDR basket, in October as anticipated, its percent [would be]…small so that change…[would be] more of a political accommodation for the growing economic power of China [than anything else],
- there is an increasing use of the yuan as a trade settlement amongst Asian countries, and starting to grow in the West, but the yuan (renminbi) is in no position, (meaning China) to replace the US fiat anytime soon.
- In addition, there is no other country willing to oppose the proxy wars, responsible by the US, to keep the fiat “dollar” in place.
Despite the disappearance of the middle class in America, rising unemployment, rising numbers of people on government assistance, cities and counties on the verge of bankruptcy, a decreasing tax base, no ability to manufacture anything and create jobs,…etc., there is little to no opposition to the overt lies and abuse by the elite-driven corporate federal government. The mostly docile American public are too ill-informed and/or simply unwilling to believe how corrupt the government is as it serves only interests of bankers and corporate leaders…public be damned, and damned they will be.
Pragmatic Reasons For Buying & Possessing Physical Gold & Silver
These are more pragmatic reasons for buying and owning physical gold and silver, more so than relying upon the regurgitation of how many ounces are being sold to an insatiable public, how many tonnes of gold China and Russia continue amass, (include silver for China, too), the corruption of the Western metals exchanges, all of these very real factors but of little effect on prices.
When gold used to be the backing behind the US dollar (the real dollar), prior to the privately owned Federal reserve usurping the constitutionally mandated control of the money supply only by Congress, people were independent of, and not reliant upon, the government. There was no unemployment insurance, no social security, no social safety nets for the public. This is why gold and silver are so despised by the elites. People do not need the government when they have independent wealth in gold and silver.
Enter the elites and the passage of the Federal Reserve Act in 1913 leading to the elimination of specie-backing and elimination of the US dollar, replaced by the now totally fiat Federal Reserve Note, deceptively called a “dollar” by the Fed, even though by law FRNs are not dollars but instruments of debt. The purpose of removing gold and silver was to get rid of the public’s ability to have wealth (physical gold and silver) and independence from the government influences. Now, with no gold or silver, (no wealth), the duped American public has become dependent on useless fiat, credit, and government handouts.
Why Buy Gold & Silver? Here’s Why
The above paragraph [and reiterated below] is the best reason to buy and hold gold and silver, at any price, and especially at these artificially suppressed prices.
- Both PMs are a means of economic freedom and independence from the de facto corporate federal government doing everything it can to enslave the country (and succeeding quite well [I might add[).
At some point, things will unravel, and this country will come apart at the seams, but it may be a slow bleed rather than a quick rupture. The elites are in the final process of killing off America and shifting their efforts to China, and they want a smooth, orderly transition in order to keep the facade alive.
Again, Why Buy Gold & Silver?
- The very fact that the central bankers do not want you to own either should be sufficient reason.
- The fact that growing economic powerhouse China and rich in natural resources Russia are buying as much as is available is another tell for your wanting to be on the side of strength.
The PMs have a history as a store of wealth and may be your economic life boat, at some point in the future. They may also literally be life savers. For sure, as bankers force people into a cashless society, it will mean your ability to buy and hold either or both PMs may come to an end…
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It does not makes sense to expect any major shake-up that would affect the pricing of gold and silver in a major way until at least January 2016 at which time the IMF is scheduled to meet to discuss the possible inclusion of the Chinese RMB in the basket of fiat currencies that make up the constituents of the U.S. Dollar Index. Let me explain why that is the case.
The insane banker’s world in which we live will come to an end, and likely a disastrous one. Keep on stacking gold & silver. On a relative scale, price should be your least concern.
2014 is ending unexpectedly for PMs, considerably weaker than what most thought would be sharply higher prices. Based on what the charts are conveying, at least the initial part of 2015 will not fare much better. Supply and demand are not the driving factors – world financial dominance is [and most]… PM “experts” are not focusing on this aspect. [Let me do so and show you how such a factor is the price trend in gold and silver in the charts provided.]
Whether it is $5,000 or $10,000 per troy ounce for gold – or $100 or $200 for silver – the current distorted pricing will prevail until there is a clear break of the elite’s central banking dominance over the gold and silver markets.
Earlier this year we said that 2014 could well be a repeat of 2013 in terms of unrealized expectations for much higher gold & silver price levels and over the ensuing months have continued to advise everyone to stay out of the long side of the paper futures market for as long as the trend continued down. That came from an obvious read of the charts.
…Have gold and silver seen a bottom yet, and is there a turnaround soon in the cards? No, and no…It is still business as usual as gold and silver languish around recent lows. There is no date one can mark on the calendar that points to an end of the Rothschild dominance over Western fiat currencies and their suppression of …
No one can outguess the elites’ sustainability of power and control over the entire financial system, including their influence over the price of gold, and, as such, this precludes anyone from being able to intelligibly articulate “when” there will be a transition from “down” to “up” in the price of gold and silver. Unfortunately, as things currently stand, the elites continue to win the majority of the battles, and so control the war. Let me explain why that is the case.
Time is running out for all the 2014 enthusiasts that are calling for higher prices in gold and silver by year-end. The lessons learned from 2013 have been forgotten as not only are prices not beginning to move higher, they are making new recent lows. Incredibly enough, many of these prognosticators are paid pretty well by their subscribers. Lesson to be learned? Absolutely no one can divine the future. Stop listening to what others are saying, and pay attention to what the charts are saying – and below is a summary of just that.
For those who can exercise even a minimal amount of foresight, taking self- direction has never been more important. That means buying physical gold and silver at any price.
Once the grip of the fiat “dollar” gives way, and it is slowly losing ground, then the price for gold and silver will find their more natural value – and not until then. When might that happen? It could be weeks, it could be months, maybe even another year or two, but whenever it happens, it is more likely to be an overnight “adjustment.” Plan accordingly.
Before gold can rally, it has to first turn the trend from down to up. We see no evidence of a change in trend. The bearish spacing is repeated, again, as a reminder that it represents a weak market within its down trend. How anyone can posit a bullish scenario from what the charts show flies in the face of known facts, as depicted in the charts.
Most in the United States have no idea of what is to come. They think they have no choice but to follow the herd over the cliff to certain financial death but some will be prompted to make a different choice. Let me explain.
Stop lamenting the current price of gold and silver and questioning the validity of owning PMs because without gold and/or silver it will be almost impossible to survive what is to come. No one knows when, but when it does, and it is a historical certainty, are you really going to care what you paid for your gold and silver?
The current unnatural control over the natural forces of Supply/Demand could continue much longer than most expect – the disappointing expectations for 2013 may repeat in 2014. Here is how we see the developing “story” that explains why gold and silver have not changed trend.
Charts capture the essence of timing so lacking in fundamentals providing information on how, (long or short), and when to enter, and at what price. Charts allow you to actually see how the markets are developing into trading opportunities, as well as when to avoid committing money. Below are analyses of gold and GDX (as a proxy for the relatively large cap gold producing stocks), in chart form, that may help you better understand what trades you should, and should not, take.
No matter what you hear or read about gold and the prospects for substantially higher price levels, the trend is down, exactly opposite of what you know. When you compare what you know, an opinion, with what the market is telling you, the market is a more accurate measure, however counter-intuitive it may be to your opinion, [and THIS is what the markets are saying].