Sunday 19 January 2013
It has become universally recognized that the power of thought can change anything.
Silver remains incredibly undervalued, and that bodes well for all of us silver stackers.
The fact that silver and gold have purposefully been suppressed by the moneychangers
makes the future for the next price rise to be greater than ever. Any time anything has
been artificially manipulated, it makes the ultimate outcome far worse than was planned
by those doing everything possible to prevent a rise in prices. Central planning always
Do not mess with Mother Nature! The natural law of supply and demand will always rise
up from under the distorted efforts to contain it. The good news is that each passing week
brings silver closer to its inevitable resolve: a powerful rally that will surpass all others.
In our gold article, Disconnect Between Fundamentals And Price. Perception Rules, we
addressed the importance of perception. Beliefs are formed from perceptions, and they
are not necessarily reality, but just a belief about reality. Change the perception and you
change the belief.
We keep moving away from discussing fundamentals because the fundamentals have not
been reliable indicators in the supply/demand equation that normally determines price.
Yet, almost every single article focuses on the record sales of numbers of coins offered to
the public, charts showing overwhelmingly favorable statistics that favor higher silver
prices, cost factors for mine production, decreasing supply relative to increasing demand.
How many times, and in how many ways can the same information be presented over the
past year, and yet the price of silver languishes near recent lows? People have an appetite
for this kind of information. It serves as a crutch to bolster flagging belief that silver and
gold will rally any time soon.
From our perspective, we are looking at one of the best opportunities to be buying the
Precious Metals, [PM], in our lifetime. Okay, second best. Those who have been buying
since $4 and $5, and up, deserve recognition for knowing far better that silver stacking
was, and continues to be the right thing to do.
Fundamentals are real. We are not being dismissive of their importance. Instead, we see
the perception of their impact as being misplaced, for now. Ultimately, they will prevail,
but the greater area of focus of a failed fiat financial system deserves center stage. It is the
gross distortion of paper fiat being forced-fed down the throats of the public and
sovereign governments, like a goose being prepared to produce foie gras, that virtually
guarantees the price of silver, and that of gold will rise to appropriate levels that reflect
the degree of manipulation over the past few years.
It is hard to imagine that the elites may have miscalculated so badly, but that is a distinct
possibility. Perceptions of the elites and their New World Order, as controlled by their
central banking system and determined by the Rothschild Formula, [Give me control over
a nation’s money, and I care not who makes the laws], has always been to see them as
Could it be that their success over the past few hundred years, unopposed, has led them
to become susceptible as a consequence of their own arrogance and their own perceived
sense in invincibility? We do not know, but it was a thought that was unthinkable in the
past recent years.
Thoughts are ideas. They do not exist in physical form, yet they have been proven to
manifest themselves into the physical world throughout history. Marconi, Einstein,
Gandhi, and so many others transformed a thought that impacted the world. The power
of one lives on.
Three years ago, the irreverent Max Keiser exhorted people to ”crash J P Morgan by
buying one silver coin.” It has not worked, obviously, but his idea is spot on, and the
notion to keep buying silver and gold coins may not overturn the effort of the elites, but
it will have a dramatic impact on the individuals who have taken the right steps to buy
and hold PMs as the best form of protection against the financial ravages that are sure
to result from the miscalculated arrogance of the elites.
Who, growing up in America, would have ever thought that it would be China and Russia
that could suppress the suppressors? The most coveted prize of the Rothschild formula
was to own all the gold, following the dictates of the Golden Rule, and rule they have, but
their days may be numbered.
There are always unintended consequences when the laws of nature are misused. The
elites never imagined their artificial suppression of the people of the world could ever
come back to haunt them. They still maintain a stronghold on the Western world, via
the Federal Reserve in America, and the all but failed European Union, as they continue
to wreak financial havoc on country after country. Even the stalwart Germany may soon
turn its back on the elite’s puppet bureaucrats running the show over there.
Consider: the rebuke to Germany in refusing to return their own gold, German citizens
tiring of the idea of financially supporting other financially failing Euro countries, even the
not so petty spying on Angela Dorothea Kasner Merkel, German Chancellor and turncoat
architect for the elite’s formation of the European Union to subjugate Europe’s citizenry
under one convenient umbrella of control, may have added to the tipping point for
potentially turning Germany to the East, where the money and the future financial and
energy power is.
So, change your beliefs and, in turn, your perception of reality, and stay focused on
buying, holding, and not letting go of any acquired silver and gold in the realization that
your action of one will help bring about the demise of the New World Order imperialism
being so willingly advanced by the Obamas and Merkels of the world. The UK has always
been a pivotal player in NWO subjugation.
There is no hope for Obama. He is controlled by the elites and in control of a badly leaking
financial ship that has been damaged by a huge fiat iceberg, as it were. Merkel, on the
other hand, has a choice. If she does not change, external events will force the change
upon her. The UK will never change.
We acknowledge the COMX-derived charts of the paper derivatives of the actual physical
silver market are controlled by the central bankers, but it is all we have. Plus, throughout
history, there has always been some degree of manipulation over all markets. It is human
nature to go against Mother Nature.
To the charts…
Silver may be the one to watch for 2014. It is likely to outperform gold because the gold-
to-silver ratio is so high, currently just under 62:1. Reversion to the mean, which is nearer
to 28:1, strongly supports this idea. This is a fact and not a perception, so there is a higher
degree of validity to it.
The weekly chart shows a TR, [trading range] since the April 2011 highs and lows of Sept,
Dec 2012, May – July 2012, broken support 2 years later at 26 in April 2013. From the
$50 highs to the $26 TR lows, over a period of 104 weeks, the downside of broken support
has “only” been $7. For this reason, we likened it to a mountain in labor giving birth to a
molehill. How disappointing. More downside was more than reasonably expected.
It could be that the downside is not done, that more is yet to come. From a pragmatic
point of view, the rally effort in July failed to reach 26, leaving behind what is called
bearish spacing. It is a sign of weakness because it shows bears were confident enough
to not wait and see how 26 would be retested, correctly expecting lower prices were to
However, since that failed 4 week rally from the small TR, it has taken 18 weeks, 4 and 1/2
times longer to correct back to the breakout of the prior 4 week rally. You typically see this
kind of labored retest in a bull market, not a bear market, and silver remains in a bear
This last event is a red flag notice for bears to either step up selling efforts or see buying
efforts become stronger and eventually overtake supply.
That said, the week just ended did so on a very narrow range bar and near the highs of the
past 8 weeks of trading. A narrow rally range typically means lack of demand, and that
makes sense in a bear market environment. The last 4 weeks also have a clustering of
closes. A clustering of closes can be a pause before the small rally attempt continues, or
it can lead to a reversal of the little rally and a resumption of the main trend, which is
We do not have to know, in advance, nor do we need to anticipate ahead of time, or even
make the common, costly mistake of predicting. Just let the market confirm its intent,
and then follow along with the proven market direction.
What looked like a potential failed probe above 20.50, last Tuesday, and the two
weak rally attempts on Wednesday and Thursday suggested price would pull back
again. The exact opposite happened as price rallied on Friday. Whenever the market
does something opposite to expectations, take note. Also, if a failed probe is going to
actually fail, the market will decline away from resistance. In this instance, price has
held and closed above the last two day’s of decline effort.
For the reasons just cited, and for noting during Wednesday and Thursday activity
that the market seemed to hold declines, even though it did not rally higher, it seemed
even then that silver could be absorbing selling efforts, eventually to go higher.
Silver is at an area of indecision within a down trend that has lost momentum. Rather
than guess at what may happen, and possibly be wrong in guessing, better to wait for
price to confirm its intent, and then take some action in harmony with the developing
As to the physical, keep on stacking! Let the market take is course, naturally, or with
temporary interference, and do not be distracted by purposeful distractions. It is but
a matter of time, history is on the side of silver, and the rewards will be well worth the