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We live in an Alice In Wonderland, circa Orwell’s 1984 world. Everything is upside down, and that includes the
price for gold and silver.
The above comments are edited excerpts from an article* by Michael Noonan (edgetraderplus.com) entitled Gold And Silver – Western World Is Upside Down.
The following article is presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and the FREE Market Intelligence Report newsletter (register here; sample here) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Noonan goes on to say in further edited excerpts:
The Problem
Debt has been growing exponentially, being refinanced ad infinitum with interest rates close to zero, while the ability to repay it has been in an unabated decline. There is never enough “money” to pay off both principal and interest….[because, in fact,] there is no money. All that exists in circulation is fiat paper debt…
Debt is not, and can never be, money. The only lawful money in the United States is gold and silver. This remains true to this day, but since the questionable passage of the Federal Reserve Act of 1913, the Federal Reserve has destroyed all US issued Notes that were specie-backed, and gold and silver coin no longer circulate.
Thomas Jefferson once said, “The two enemies of the people are criminals and government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized version of the first.” Unfortunately, the Federal Reserve Act of 1913 changed all that allowing the elites to take over control of this nation’s money issuance. Then and there, the people lost their government to the money changers, and it is now only criminals that are in control, and so successfully almost all the people still…are not [aware of that fact].
The Solution
To avoid the debt trap, owning physical gold and silver is the best way to preserve, and even grow, purchasing power. Keep on buying when, and as much as, possible, even cashing in retirement funds. Better to pay any tax/penalty for getting out early, for if there is one thing certain in the not too distant future, the corporate federal government will confiscate all retirement plans, exchanging them for government bonds that can no longer be sold to foreigners who refuse to buy them. It is a choice, at least until the government says otherwise, which it will.
The Current Gold Situation
For the present, gold has stopped declining. Whether this will lead to a change in trend remains to be seen. It takes time and a lot more volume effort to change a trend. While the numbers for potential events that can keep gold in a sustained rally remain high, none appear to be in play, at the moment, even with the threat of war in Ukraine…[and Iraq].
What is most reliable in defining the character of any trend is the retest after a move of any degree. If 1330 is retested next week, it will be a continuation of recent relative strength. What will be important is HOW the next retest develops, be it from 1330 or last week’s rally high.
If the trend is to turn upward, the next correction should show smaller ranges down, and volume should decrease, indicating less selling pressure. A correction should also be less in duration, lasting 3-4 trading days lower, for a relatively stronger trend, to 5 -8 trading days, which would be more typical in a weaker environment, which is where gold is now.
The Current Silver Situation
Silver has been more depressed than gold, but it could turn into a more important metal to watch if price approaches its resistance/support levels ahead of gold. The down trend is far from turning.
Silver would have to rally over 22.90 to about equal the last failed rally which began at the end of January. In fact, that last failed rally is sufficient reason to not get overly enthused about the current rally. There needs to be some kind of confirming indicator that a trend change has occurred, and none is apparent, yet.
When the next correction is marked by smaller ranges, without the larger numbers of down days since the February high, and not last as long in duration, these will be more reliable signs of change.
Owning physical gold and silver is the best way to preserve, and even grow, purchasing power. Keep on buying when, and as much as, possible.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://edgetraderplus.com/market-commentaries/gold-and-silver-western-world-is-upside-down-2
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2. Noonan: U.S. Debt & the Expected Movement in the Price of Gold & Silver
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My suggestion is to determine the percentage of your portfolio that is carried over year to year and consider shifting that amount to physical PM ‘s which will then serve as a buffer against a major shift in the value of the US$ and/or the stock market.