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We have been saying for the past few months that the charts are telling anyone who wants to pay attention that prices are not going higher anytime soon. That can change in a week or a month or a year, but until there are signs of change, prices will remain suppressed.
Excerpts from an article* by Michael Noonan (edgetraderplus.com) originally entitled Gold And Silver – Banker Insanity Grows, PMs Decline.
What we have been saying for an even longer period of time, a few years, is keep buying, and personally holding, physical gold and/or silver. Price does not matter. Sure, everyone wants to get the most for their money, but that is not the purpose of buying PMs any more. At some point, it may not be available at these prices, literally overnight when reality finally kicks in and a price adjustment is made in line with true supply/demand. Also, governments being what they are, an outright ban on purchasing PMs can be put into place. Already efforts to confiscate PMs from safety deposit boxes are in place. Expect things to get worse, not better.
Silver: Weekly Chart
The trend matters the most because the majority of price development will occur within the trend’s context and, comparing the location of price on the Right Hand Side of the chart relative to the Left Hand Side, clearly shows how price has been developing throughout, to the downside, with the trend.
Silver: Daily Chart
When you compare the above chart to that of the daily chart for silver below, silver has a better relative show in how it is holding within the down channel. We get key information by observing how price reacts/responds to obvious support/resistance levels. If it bounces off and rallies higher, support will hold. If price stays at/near support, the likelihood is greater that potential support will not hold. It is not our job to guess which but to watch and then respond to the confirmed market
activity, if a tradable opportunity arises.
Gold: Weekly Chart
While last week’s down bar in gold strongly suggests lower prices, it does not necessarily follow that lower prices will occur. For that reason, we watch to see how price reacts in order to have important information moving forward.
Gold: Daily Chart
The chart comments are apt. You can see how the daily gold chart is relatively weaker than that of silver. However, both remain in a down trend, and that is what matters.
Conclusion
If you do not own gold & silver now, you are playing a game of (irresponsible) risk. For those who already own PMs, even for prices at the highs, accept it and be glad you own either or both.
The insane banker’s world in which we live will come to an end, and likely a disastrous one. Keep on stacking, keep on staking. On a relative scale, price should be your least concern.
The article above is presented courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), 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.
*http://edgetraderplus.com/market-commentaries/gold-and-silver-banker-insanity-grows-pms-decline
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