Submitted by Michael Noonan – Edge Trader Plus
Saturday 11 January 2014
Here is some very cogent rationale for owning gold and silver. None pertain to the
ever-ending reasons that demonstrate great demand. Everyone has been hearing
about them in a steady stream for the past year, and the impact on the market has
been nil. Often in tandem with the latest news, like record coin sales from…[pick a
mint or country], is the lament from PM holders on where the current price of gold
is, at lows for the past two + years, making many question the validity of owning PMs.
For any self-doubters, especially those who paid for their PMs at 50% to 100% higher
in the past year or two, by example, we still hold some gold purchased at $1800 the
ounce, some silver at $48 the ounce. That just happened to be where gold and silver
were at the time. We were engaged on a consistent plan of purchasing, regardless of
price. There were specific reasons for wanting to own physical gold and silver, and none
of those reasons have changed. In fact, they have increased.
We now live in a financially insane world. The government tells everyone that 2 + 2 =
5, consistently, and people continue accept the lies. If you listen to the government
and the bought-and-paid-for mainstream media, all is well in this country, when in
reality, we are dealing with recession, inflation, joblessness, and general instability.
The biggest problem is debt. Actually, it is the core issue. Bury people and countries in
debt, and demand their hard assets as payment in return, aka the Rothschild formula,
in use for hundreds of years. The debt burden is now so onerous that it is becoming
almost impossible to keep under control. The elites are so skilled at getting their false
message out, through governments, that people are more than willing to believe the
Greece was a warning shot for the rest of what passes as a [not so] free world. The
message? It is mathematically impossible to sustain the growing debt burden in any
given country with no ability to ever pay it back. The United States has become a
welfare state for too many of its citizens. The largest growth sector in this country is
the federal government. The government produces nothing. Everything it spends
has to come from the people, or increased borrowing. It is a tapeworm consuming
The Fed has kept the stock market propped up by tapered window dressing. Interest
rates are artificially being held low to enable the government and all the banks to keep
the debt Ponzi scheme on life-support, which ultimately leads to death, financially.
Zero rates means keeping the accumulating interest costs of government lower.
Allowing rates to rise to a more normal 3% – 5% would collapse the federal government
and all of the insolvent banks which are responsible for every financial problem everyone
now faces, except the privileged 1%.
No one in the past 100 years, since the Federal Reserve Act was passed and the privately
owned Federal Reserve bank usurped the organic Constitution and took over issuing this
nation’s money, has done anything to abolish the Fed.
“Give me control of a nation’s money, and I care not who makes the laws.”
-Mayer Amschel Rothschild
It really is not hard to connect the dots if one truly wants to do so. The information is out
there, but few are willing to seek out the truth, and instead, prefer dwelling in the [dis]
comfort of debt-laden lives.
There was one person who tried to make a difference: John F Kennedy, when he decided
to print billions of silver-backed dollar certificates. The world knows that Kennedy was
assassinated and replaced by Lyndon Baines Johnson. One of Johnson’s first official acts,
within days of being sworn in, was to rescind Kennedy’s order to issue the silver-backed
certificates. The elites have their priorities, and puppet presidents must do their bidding.
Why aren’t politicians doing everything possible to get rid of the legal [but not lawful]
privately owned Federal Reserve Banking system that charges the government interest
on the purely fiat money the Fed issues? Very few people in this country wonder why the
U S government does not issue its own currency, [as it did prior to the Federal Reserve
Act of 1913], and not have to pay interest on the currency issued. One of the largest
expenses is the federal government is the debt owned to a foreign entity that controls
this country’s own money. Federal Reserve Notes are not money. They are debt
instruments. Debt can never be money. Dwell on that thought for a while.
The elites use the Federal Reserve to entirely control the government and used FDR
to ban gold ownership in 1933. Previously, gold and silver were used exclusively in
backing United States Notes and gold and silver coins issued by the U S Treasury.
Since 1933, gold has been absent from the public arena, and 1963 for silver. So many
in this country are unaware of the important role gold and silver have played.
Prior to 1933, people used gold and silver in all ways of their daily lives. No one used
credit cards, and people had no need for socialist government services. This is why
the elites had gold and silver removed from circulation as money. It was accomplished
over decades, by design, so people would not notice the change and gradually accept
the substituted Federal Reserve Note system.
United States issued Treasury Notes, backed by gold and silver, were allowed to circulate
along side Federal Reserve Notes, [debt instruments], and people began to equate the
two as the same. At that point, the Federal Reserve began withdrawing all US Treasury
Notes and had them destroyed.
You do not need more statistics about the current shortage of gold and silver, or more
citing on the number of tonnes of gold China continues to import. That information has
been of little practical use. What you need to know is the kind of factual history we just
briefly presented in order to know that it is incumbent upon your future to take whatever
measures necessary for surviving the financial time bomb waiting to explode.
It is not important to know what others are doing, but it is critically important to know
what others are doing to you, and what you are going to do for yourself and your family.
It is a proven historical fact that every fiat system has failed, utterly. The U S is in that
process, right now.
The actions of the government will be your first signs of imminent collapse. Anyone
who chooses to keep money in the banking system is fodder for the banking whores.
They will steal your money. It is a known fact that all money you deposit into the banking
system becomes their money, and you, by banking laws, become an unsecured creditor.
The government will raid private pensions, like Hungary and Poland have done. Your
pension will likely become nationalized, and you may receive a 10 year government bond
in return for whatever money you have saved. It happened in Argentina just a decade ago.
There is ample evidence throughout the world of what a government will do to survive, at
You want a reason to own gold and silver instead of anything paper-issued? Forget
about statistics and the demand side of the equation. All of the events discussed here,
and worse, are on the agenda of the elites to gain world control over everyone. 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?
We all have choices to make, and we all deal with the consequences of these choices. Do
not worry if you paid a high price for your gold and silver. You do not intend to sell it,
so any loss is imagined. Stay true to what history has proven. No one knows when the
collapse will be realized, but one has to continue to prepare for the inevitable in a world
that makes no sense, financially.
We were interviewed on this topic, last week, and the audio can be found on our site,
edgetraderplus.com, under the category “Interview,” for anyone interested.
The charts may be closer to showing signs of bottoming. Here is our current read.
Bearish spacing develops when a low is broken, last April, and the next rally swing high,
August, fails to reach and retest the previous swing low, leaving a space. It indicates a
There was a strong rally on Friday, but when seen on the weekly chart, the results are
less impressive. That observation is amplified when you compare the last two bar ranges
and respective volume. The second bar from the end shows ease of upward movement by
a wide range and strong close with volume greater than the previous day.
On Friday, volume increased sharply compared to day 2, yet the price bar range narrowed.
Increased effort, volume, yielded less results, a smaller range. The reason why the range
narrowed was due to sellers meeting the increased effort of buyers and preventing the
price range from extending higher.
You can expect to see this kind of activity in a down trend where sellers have been in
control. From a weekly chart perspective, gold continues to struggle, even with a strong
rally effort on Friday. This is the way to read the “message” of developing market activity.
Friday’s rally stopped at a minor resistance area, [thin horizontal line]. Continuation to
the upside would be expected on Monday. We will now begin to see if gold can develop
a sustained upside rally and begin to change the trend, from down to at least sideways.
The last time silver spent 8 weeks in a TR, June – August, the 9th week was a strong rally.
There are now 8 weeks completed in the current TR, and Monday starts week 9. The last
three weeks have a close clustering of closes. This reflects balance between sellers and
buyers, and from balance comes unbalance.
All three of the last closes are upper range, indicating buyers won the battle each week,
and it would indicate that buyers are absorbing the effort of sellers prior to moving
higher. That is the probability read, but the market always has the final say.
The daily does not have a similar positive read as the weekly, and as we noted on the
chart, the increased volume, last bar, did not quite generate as wide a price range as
occurred 6 bars earlier. Price is still within the established TR, moving farther along
the Right Hand Side, where resolve takes price out of the TR.
For the moment, momentum is on the buy side.
The futures still have issues, and one cannot buy into rallies in a down trend. The
physical gold and silver metals also have issues, but the resolve is going to eventually
lead to an explosive upside. Continue to buy the physical. These are great prices.