Tuesday , 16 April 2024

Gold & Silver: It Could Get Uglier! Here’s What the Charts Are Saying (+2K Views)

The next chapter [in gold and silver] has yet to be written. One thing is likely to be certain, it will get uglier. The public will not be prepared for what could take a few more years to develop, and the potential for yet much lower prices for both gold and silver.  This certainly is not a blueprint of the future, but a conjecture of what could happen, in one form or another.  In the end, no one knows how this will turn out, other than a strong belief that it will get worse before it gets better.

So says Michael Noonan (http://edgetraderplus.com) in severely edited excerpts from his original article* entitled Gold And Silver – It Could Get Uglier And Take Longer.

(NOTE: This post is presented by  Lorimer Wilson, editor of www.munKNEE.com and the free Intelligence Report newsletter (see sample here). The article may have 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.

Noonan goes on to say in further edited excerpts:

The Why

[Worse? Yes,] gold and silver could become illegal to use in public trade or barter.  Anyone caught could be branded as a “financial terrorist” as governments continue to crack down on any form of opposition to their fiat enslaving control.  Anyone “caught” with more than “x” ounces of gold or silver might have to prove it was legally purchased or risk confiscation.  War, on a wider scale, cannot be ruled out as a “diversion” often used by the New World Order ilk.  No one knows.

Regardless of what the charts show, one should continue to buy physical gold and silver, (and personally hold it), on a regular basis.  Fiat currencies will continue to be debased by governments.  A failing fiat and falling gold and silver prices cannot continue indefinitely, and the fiat will be the ultimate loser.  Those who continue to hold paper anything, may be subject to near total loss.

Inflation is already guaranteeing losses with the fiat Federal Reserve Note (i.e. USD) losing 35% just in the past decade.   Then there is the consideration of being “Cyprused” in your bank accounts, stock accounts, futures accounts, (e.g. MF Global), and pensions.  Gold and silver remain the best  alternatives.

Gold – Weekly Chart

There is nothing conclusive for initiating a position in the futures in either direction….Price is holding the support channel line, but rally attempts have not been strong.  It does not mean price cannot go higher next week, but there is no new demand that says to be a buyer in futures.

GCA W 11 May 13

Gold – Daily Chart

Friday’s close (May 10th) on the daily was under the last 10 days of buying effort.  No reason to buy. We would like to see a failed rally above 1500 to be a seller.

GCM D 11 May 13

Silver – Weekly Chart

How price responds around a support or resistance is an important market clue.  Right now, silver cannot rally higher and away from a support area, and that suggests support may not hold.

SIACW 11 May 13

Silver – Daily Chart

The daily chart does little to clarify direction, although one has to keep in mind that sellers are still in control.  The clustering of closes sends a mixed message, as noted on the chart.

SIN D 11 Mat 13

The clearest scenario is the ongoing purchase and accumulation of physical gold and silver as a store of value against an increasingly uncertain future. 

(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.)


Other Recent Noonan Articles:

1. What the Charts Say About the Future Price Action of Gold & Silver


The monthly silver chart does not reflect what could be viewed as ending action for the decline.  If/as price rallies, it may be more of a futures selling opportunity than a sign of recovery.  As the structure stands, odds favor lower price attempts. Read More »

2. Gold & Silver: Don’t Wait for the Bottom – “Average Down”. Here’s Why


You cannot control what others do, especially those in power. You can control what you do.  Just keep buying, regardless of price, because if/when the price of gold and silver were to go lower, you may not be able to buy.  If/when the price of gold and silver were to go higher, it may be at such an accelerated rate that any price in the past few years seem cheap. Words: 550 Read More »

3. The Best Article On “What Happened to the Price of Gold & Why?”

What happened?! is the question so many are asking about Friday’s waterfall in prices. A better question is, “Why?” Outside of the insiders, no one really knows. Yes, there can be some fairly cogent explanations, lots of glib answers, but no one knows, for sure. What we do know for sure is that the market is always the final arbiter [and this is what the market is saying:] Read More »