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There are many, and we fall in this camp, who associate gold with an inherent preservation of wealth. This has been true throughout history but with intervening failures during some time frames. Failure may not be the most apt expression, but many detractors are happy to point out those times when gold did not retain its status as a wealth preserver and, in fact, losses were on the table for many who paid a price higher than for what their gold was sold. It happens. The net result of gold being a wealth preserver, however, holds true, but with periodic, and some times substantial, yet temporary, reversals. This time will be no different.
Value is subjective, reflective of one’s feelings or opinions. In the minds of those who value gold, throughout the ages and around the world, this precious metal is deemed to have an intrinsic value superior to most other assets. The well-used adjective, intrinsic, is also subjective, construed as essential, belonging naturally in its association with gold. In the end, “intrinsic value” is elusive, a figment of one’s mind.
Price is objective, not dependent upon one’s feelings or opinions for price is an actual number. The subjective value of gold is somewhat intertwined with the objective price of gold through the natural laws of Supply and Demand. The latter are a function of what is available (demand), in relation to the desire to have what exists (supply), The desire to acquire can be greater or less than what is available, and that is what eventually determines price…
Debt around the world is in the trillions and has never been higher at any time in history. Even worse, financial derivatives are 10 to 100 times greater with no hope of ever being able to control them once the markets reverse to the downside…
Financial Armageddon is waiting in the wings. At some point, it will be unable to be controlled and financial disaster will prevail around the world. At that point, the price of gold will no longer be in control, and it will become subservient to the value of both gold and silver…
Who will survive? One group will be the owners of physical gold and silver. Of course, they will be subject to confiscation, theft, and government control, among others. That will be a small price to pay for having preserved and, more than likely, greatly enhanced the value of their holdings. Trade and barter have always existed, and the demand for concrete, as opposed to paper or digital (non)-“assets” ensure value will prevail.
When will that process begin? Unfortunately, that never-ending question has no viable answer. It will not happen one day sooner than when it begins, and that is not as nonsensical as it may seem…and now to the charts.
Gold: Monthly Chart
The actual monthly close will be on Monday, but a single day is not likely to materially alter the chart interpretation. The takeaway from this and every other time frame is that a strong rally is not imminent. In fact, we are more likely to see more of the same. The potential for positive change always exists, but until we can see such change developing on the charts, more sideways activity will continue.
Gold: Weekly Chart
TRs (Trading Ranges), are the least telling as to direction. Right now, price is almost at the center of the TR and can go in either direction without changing the TR, at least until there is a decisive breakout, either way.
Gold: Daily Chart
More of the same…nothing revealing.
Silver: Monthly Chart
Silver remains weaker, relative to gold. For July to prove its potential for change, price needs to follow through to the upside, or, at a minimum, have a shallow correction.
Silver: Weekly Chart
The comment on volume in the chart is the most positive statement we can make.
Silver: Daily Chart
Why say more than what the chart clearly reveals?
Financial Armageddon is waiting in the wings. At some point, it will be unable to be controlled and financial disaster will prevail around the world. Who will survive? One group will be the owners of physical gold and silver. Trade and barter have always existed, and the demand for concrete, as opposed to paper or digital (non)-“assets”, ensure value will prevail. When will…[all this] begin? Unfortunately, that never-ending question has no viable answer. It will not happen one day sooner than when it begins, and that is not as nonsensical as it may seem.
The comments above are edited ([ ]) and abridged (…) excerpts from the original article by Michael Noonan
Previous Articles By Michael Noonan
1. Noonan: “Charts Give No Hint Of A Change In The Ongoing Downside Pressure On Gold & Silver”
There does not appear to be any hint of a change in the ongoing downside pressure for gold and silver. Confirmation of a change in trend will only come after a higher high above 1300 from 2016, as seen in this weekly chart below.
2. Noonan: “Neither gold nor silver are in a position to initiate a substantial rally”
…The paper markets…have had a surprising rally over the past month, one that has taken us by surprise, but we are not convinced it will continue. The only caveat in making that assessment is the fact that, at some point, gold and silver will not look back and will do nothing but accelerate in price. However, that condition should exhibit …
The charts, for us, are the best framework for depicting where price is headed, or not headed, for PMs. Eventually, there will be a breakout, but no time soon, as the charts below so clearly illustrate.
Trust in the proven history of the only true money, gold and silver. The charts say there is still time to buy, but any event can trigger a panic and the physical metals will not be had at prices people can now afford.
5. Noonan’s Back! “Gold & Silver Prices Defy Logic But Show NO Signs Of A Turnaround – Yet”
…Those concerned about the current low prices for gold and silver – prices that defy logic, defy supply, defy demand and show no signs of a turnaround, yet, according to all the charts – are playing a fool’s game. Instead, they should be doing everything possible to have and accumulate physical possession of them. China, Russia, India, even central bankers are all amassing as much physical gold and silver as is possible. Take a page from those who rule and do the same. Accumulate whatever you can, while you still can.
Gold & silver remain within the eye of a deceptively manipulated economic hurricane. [Please note that this article is Michael’s last weekly commentary on the markets having concluded that…]
For the moment, we are in the calm of the proverbial eye of the largest hurricane ever, and it is the calm before the inescapable storm that will be more financially destructive than the 2004 Indian Ocean tsunami.
8. Noonan: “ONLY Gold & Silver Are Money! What’s In Your Wallet?”
If you want money and want to survive the massive economic failure that is destined to come, buy and hold gold and silver. The world has not been awash in debt more than it is now and that mushrooming debt cannot be sustained. What’s in your wallet? Words: 860
For as much as we favor – and expect – eventual higher prices for gold and silver, the charts do not indicate it will be any time soon. The following charts show you why.
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