Tuesday , 20 February 2024

Noonan: Gold Remains Low For These Compelling Reasons (+2K Views)

The current unnatural control over the natural forces of Supply/Demand could continue much longer than gold-silvermost expect – the disappointing expectations for 2013 may repeat in 2014.   Here is how we see the developing “story” that explains why gold and silver have not changed trend.

So says Michael Noonan (edgetraderplus.com) in edited excerpts from his original article* entitled Gold And Silver – Power Of Elites More Important Than China’s Gold.

[The following is presented by Lorimer Wilson, editor of www.munKNEE.com 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:

“Give me control of a nation’s money, and I care not who makes the laws.” Mayer Amschel Bauer, aka Rothschild

We cannot think of any sentence that has had, and continues to have, a more pervasive, as well as perverse, influence over mankind than this one, the key to the Rothschild dynasty in its quest for world dominance….

The Legion of PM Pundits/Analysts/Writers Just Don’t Get It!

For the past few years, the only focus by the gold and silver crowd has been how many tonnes of gold China has been importing, marveling at the record amount moving from West to East, trying to calibrate as closely as possible how many tonnes it is.  It should be enough to know that it is a record amount and that it continues to this day.  Instead of expending so much time, energy, and effort determining numbers, just accept it as a given.  It has been priced into the market.  The more pertinent question is why has this widely known and accepted factual circumstance not had any impact on the price of gold?

Does everyone really need to know how many gold and silver coins are being bought by the public from issuing mints around the world?  Is it really important to know how much gold is being smuggled into India?  Is there anyone who keeps tabs on PMs that is unaware that Switzerland has been running shifts around the clock recasting gold to meet Chinese preferences for smaller bars that are .9999 fine?   More information already priced into the market.

The heart of reporting by the PM crowd, plus coverage by the most respected minds in gold and silver, all end up concluding that gold should be $10,000 per troy ounce and silver at $150 – $250 per troy ounce, or even higher for both…

What is wrong with this picture?  Almost everyone is looking at the same information and maintaining the same expectations, and all are missing the less obvious but more relevant reasons why gold and silver struggle.  Their “story,” while valid, is wrong. It is the power struggle between the established powerful elites of the West and the rising power of the East!

Power Struggle Between West & East: It’s Payback Time!

No disrespect to the well-deserved respect for the precious metals pundits and the legion writers with expertise in the precious metals arena, but none are addressing the failure of the natural order of supply and demand as the supposed source for determining price.

There is a power struggle going on between West vs. East, and until it plays itself out, the West has a vested interest in suppressing the price of gold and silver in order to preserve the worthless fiat “dollar” as the elite’s chosen world reserve currency.

“Give me control of a nation’s money, and I care not who makes the rules.” Again, the subtext is, “Play by our rules or you will be destroyed.” “Give me control of a nation’s money, and I care not who makes the laws.”

…[People need] to understand the profound impact that sentence has had since the Rothschild dynasty took over the Western world, unnoticed, unseen, but very much present in ways most people cannot fathom.  Unless and until people start to question
why things are the way they are, nothing will change.  Well, that was until China decided they did not like having their gold stolen from them by the Western central banking cartel. It is payback time.

China does not stand alone.  The formation of the BRICS nations has been in response to the reckless abandon with which the US has been exporting it inflationary Treasury Bonds, backed by the petro-dollar as the world’s reserve currency.  The ever-growing
Eastern bloc of nations is in the process of putting an end to Western world financial dominance via fiat: fiat “dollar,” fiat Pound, fiat Yen, fiat Euro, fiat Franc, etc, etc.

China has been accumulating as much of the world’s supply of gold as it can, (the focus of the PM community), and the accumulation has been at bargain-basement prices. China has no interest in seeing the price of gold rally, certainly not during the phase of accumulation that will then lead to mark-up.   That country is willing to accommodate the West in suppressing  gold  during the last phase of their waning power.

History tells us every fiat currency fails.  It is just a matter of time.  China is well aware of the fate that faces the West, and China is willing to let that  demise take its natural course.  Here are some clues China has given that most PM analysts are not addressing.

  • China’s time frame is much longer than the “do it now” time frame in the West.  The reason China will not interfere with the West’s misguided intent to suppress gold:  for one, China gets it at low prices.
  • For now, China wants to keep the Renminbi stable, (even a little suppression going on there).  It does not want to tie its currency to gold because it would immediately cause it to rally sharply. Staying pegged to the US “dollar,” instead, its currency resembles the other international currencies.  Unable to match the “creditworthiness” of the “dollar,” China’s currency officially remains somewhat subordinated to the US fiat.  Were the Renminbi allowed to be gold-backed, China’s currency would then become too strong, relative to the rest of the world and put China at a competitive disadvantage.

For as long as China wants to remain low-key, it prefers a lower gold price.  If the world’s largest holder of and greatest demand for gold does not want to see it rise in value, and the West does not want gold to rally, that may be enough to keep the paper game alive.

Consequently, do not expect China to be a catalyst for establishing a gold-backed currency. It serves China best to allow the West to maintain its duplicitous control over gold and silver.  With  no country in a hurry to have a gold-backed currency, one of the biggest factors for seeing the price of gold sky-rocket is off the table.  This factor is far more significant than all the demand  statistics paraded each week by PM writers.

West Bullying Of East Will Fail

Another sign of the West’s determination to hold on to power is their…telling Russia sanctions will be imposed over the Crimea situation.  Russia is entering into a barter with Iran, exchanging oil for Russian goods and using the Ruble for any contract,
eliminating the U.S. petro-dollar.  Obama has the audacity to issues yet more threats of sanctions, all becaus Russia chooses to buy oil from Iran and use its own currency in a trade in which the U.S. has zero involvement, other demanding Russia use  U.S. currency.

[I can just imagine the following verbal exchange:]
  • Obama to Putin:  “We are imposing sanctions on Russia, (but we still want you to use our “dollar” in all your trade agreements).
  • Putin to Obama:  “What’s in YOUR wallet?” (Russia has lots of natural gas resources.  The U.S. has lots of debt.)

Somehow, we feel Obama will end up singing, “Crimea River.”

No one knows when things will change but change they will, and only then will the price of gold and silver find their natural level.

We keep saying to pay attention to the charts.  They show no signs that would lead to any panic by the West.  For as long as the elites remain in control in the West, gold and silver are just a few more (manipulated) commodities.  The power of the elites denies the PM of their true status as money.  The East is in progress of making a change. It’s payback time!

(It is always worth making the distinction between buying and owning physical gold and silver vs. futures.  We encourage buying and personally holding the physical to the extent of one’s ability to buy both on a consistent basis, regardless of price.  The endless printing of digital currency ensures the financial picture for the U S will end badly.  Those without gold and silver will suffer considerably.  Those with physical gold and silver will also suffer, but they will be better positioned to survive the financial chaos sure to follow.)

[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.]


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