Noonan: “Silver Should Continue To Outperform Gold”

…[Of the many] reasons to be buying and personally holding gold and silver, price is the last consideration.  More importantly, for now, is availability.  Get either, or both, while you still can.  This window of opportunity will close without warning.  How, when, or even under what circumstances no one knows.

So says Michael Noonan (edgetraderplus.com) in edited ([ ]) and abridged (…) excerpts from the original article.

Noonan goes on to say:

There are two primary reasons for the never-ending goal of buying and holding physical gold and silver:

1. Both are the only valid form of money…
2. In a world where the elite’s have been ruling for the past few centuries, and where it has reached its tarnished zenith in present day, where greed and stupidity readily prevail over the uninspired masses, if you do not own gold and/or silver, you’ve got nothing!..

Buy gold and silver,  It is the most sane thing anyone can do in world gone, not going but gone amok.

To where will the price of silver and gold go?  $400 silver?  $10,000 gold?  No one knows, and wherever price goes, it will be relative to what is going on in the world, and as the history of gold and silver has proven, no matter what the price, the preservation of your
wealth-effect will be maintained to your benefit.

Just keep accumulating and trust in the Force, as it were, to “coin” a phrase from Star Wars.  If you do not have any, it will not matter.  For those who do, it will be the difference potentially between surviving economic calamity or not.  How many tonnes China or Russia are buying, or how many coins are being sold to the public each month will be of no consequence to what you personally own and hold.  The only consequence that matters is the fact that you hold some.

How much gold and silver should one own?  Mainstream thought is 10% – 20% [or so] of one’s assets.  Our question would be, in what form is the remaining 90% – 80%?  If it is in paper assets, and all paper assets will likely reach the intrinsic worth of the paper itself, it may pay to rethink one’s objectives.

Now to the Gold & Silver Charts

GOLD

Developing market activity “spoke” loudly, last week, when price rallied in a crescendo to the 1315+level before taking a dramatic downturn…to 1280.  That was a clear message from the market saying that sellers overwhelmed buyers, for the time being. Every market needs to undergo a correction to remain sustainable in a trend, and this one in gold is trying to establish itself…[having] reached at least a temporary turning point last Thursday after a virtually uncorrected rally from 1200.

[The comments in the chart above]…are worth reviewing regarding that portion from the second half of May when volume increased substantially as price declined, yet, there was no further downside once price reached the support area at 1200.  That apparent “selling” volume takes on a much different interpretation, as a consequence.

Strong volume activity is always generated by smart money.  The public have no ability to mount a collectively concerted buying or selling effort at one time in the market.  Most of the volume increase occurred after the 1260 area was breached in mid-May, most likely weak hands stopping themselves out of the market on the decline or unable to maintain margin calls.  Smart money took everything that was available for sale.  It is why this observation is so key.

If the situation, as described, is accurate, the lows at 1200 will be staunchly defended, and one can see from the 3 June sharp volume rally in a wide range bar up how easy it was to move price higher.

The 50% retracement area is just a general guide to view as possible support, but it will be developing market activity that will be the best guide for determining if there is a buy area on the next correction.  The only caveat is that price remains in a broad TR.

SILVER

Silver still remains well under its Axis resistance at the 18.60 area.  The fact that so many silver experts are calling for a screamingly bullish scenario in this market, a market that has yet to even challenge a major resistance hurdle, is the reason why we ignore all fundamentals, even from within the silver community because there is no pertinent timing advice to substantiate the silver-to-the-moon prospects. After such a strong rally effort, last week’s mid-range close is a red flag for being long the paper market.  There will likely be some backing and filling in the week(s) ahead.

We do not make for definitive statements or sensational “predictions,” not to be lacking in conviction or ambiguous but because we respect developing market activity, and while many people want concrete assessments, the markets are not so accommodative in function to be that “predictable.”  Our posture is to maintain a healthy respect for the markets.

Silver did not rally and spike above its May high, so Thursday’s what is likely to be a failed swing high will undergo corrective activity in the coming week(s) to continue base-building for what will eventually become a substantial move higher.  Patience remains ke

Conclusion

Our view remains unchanged:  continue to buy and hold as much physical gold and silver as your situation/comfort zone allows.  Silver should continue to outperform gold.

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

“Follow the munKNEE” on Facebook, on Twitter or via our FREE bi-weekly Market Intelligence Report newsletter (see sample here , sign up in top right hand corner)