Silver And Gold - Keeping A Perspective
We have mentioned cognitive dissonance several times, so starting with a definition would be in order,
and this one is provided by Frantz Fanon:
"Sometimes people hold a core belief that is very strong. When they are presented with
evidence that works against that belief, the new evidence cannot be accepted. It would
create a feeling that is extremely uncomfortable, called cognitive dissonance. And because
it is so important to protect the core belief, they will rationalize, ignore and even deny
anything that doesn't fit in with the core belief."
When people hold core beliefs, especially false ones, they will not accept the contrary truth when
confronted with it. One of our favorites is the notion that a fiat Federal Reserve Note is a "dollar."
Even though the private corporate Federal Reserve has the word printed on its fiat, it is pure deception.
A fiat currency is backed by nothing. In truth, it is no different than Monopoly money, both being equal
in intrinsic value, which is zero. The "value" of any fiat Federal Reserve Note exists only in the mind, for
those who choose to so believe. A real United States dollar has been forced out of circulation by the
Federal Reserve over a period of decades, pulling a massive Ponzi scheme bait-and-switch, and it has
worked. This does relate to gold and silver, because all fiat currencies fail, while gold and silver have
maintained the most reliability for their PROVEN and accepted intrinsic value, all over the world and
throughout history.
There are several charts on both gold and silver, but some comments for context precede them. The
content flies in the face of conventionally held beliefs, but we can only comment on what we know. If
anyone would like to see into the future, consider this...the recent theft of private funds by MF Global,
[which has not evoked screams and hollers from the government or any regulatory agency that would
lead to criminal indictments. What you learn from this, in addition to all the derivatives fraud is that in the
world of banking, there are no criminals, but thank you Occupy Wall Streeters just the same.], and now
Portugal has raided pension funds, stealing from people's long-term retirement funds to "fix" unfixable
short-term deficit needs, you have a picture of what to expect here, at some point. Anyone with
retirement funds in any banking institutions...in fact why limit is to just retirement funds, ANY funds in a
bank are at risk.
The United States is fast approaching another presidential election, and the turn-coat incumbent, who
was funded and elected by the "graces" [money] of Goldman Sachs, will stop at nothing to get re-elected.
There are no in-between-the-lines interpretations here. Read it that Lying Ben, [the Bernank], will keep
the proverbial printing presses running 24/7, and ruining the fiat financial system, [destroying the
economy, already evidenced in the news every day/week]. You do not read about this or hear about
it from the media, local or national. What is reported is all about central bankers endeavoring to "save"
countries drowning in debt by providing [forcing] them to take on yet MORE debt.
How has that been working?
In a recent article on the Euro, we wrote:
"For those endeavoring to follow the lies put forth each day by central bankers, the
hyenas of the world of finance, and the leaders for the various countries who
demonstrate with unwavering clarity that they haven't the slightest clue as to what
they are doing, the comics page has reached the front page of all newspapers."
How ironic that it is from comics now that provide the reality of what is going on. [As explained by the
cartoon Bears, http://www.youtube.com/watch?v=jLt05sN7vK0]
How this all relates to silver and gold is showing how the world is coming apart at the financial seams,
purposefully brought about the the New World Order financial elite seeking to rule the world by destroying
each country in the process through the debasement of its currency, aka the Rotschild formula, for those
who may know the history of how that dynasty become financiers to the world. The Civil War was not
about slavery, it was all about money. It was the English Rotschilds who financed the North, while the
French Rotschilds financed the South. We digress, but the clear beneficiaries of all this financial deception
are gold and silver.
There is a reason why those in the precious metals community have been so adamant in arguing for
stratospheric prices "soon to come, as they hope. That may eventually prove to be true, but no one
should ever underestimate the central banker's stranglehold on all financial systems, and they are not
about to let the world off the hook until they succeed. The point to our advocating buying AND holding
physical gold and silver is to be prepared for the inevitable. When will the inevitable be? No one can
ever know, but better to be a year too early than a day too late.
A look at charts provides a graphic pictorial of ALL that goes on in the world, for charts depict the
distillation of all buyers and sellers who actually make decisions in the markets and not just offer opinions
on them. So here we go with our opinions...[We personally buy physical silver and gold, regularly, but
the physical market is different from the futures].
Two inside months, after the sharp September decline shows how silver has to overcome a lot of
overhead selling resistance, and the only way to do that is to absorb all the previous selling efforts.
There are two conflicting observations. 1. No further downside since September, a plus, and 2. very
little upside in the effort to recover, at this point, not a plus, but not a negative, either.
The question to be asked first is, what is the trend? The trend is up on the monthly chart. What is so
important to identifying the trend and knowing it is up, places the burden on sellers to prove control.
The fact that the trend is up means buyers have already met that burden. While the rally appears to
be weak, we can also say that sellers are not, or are unable to press the market lower.
This longer perspective of a weekly chart shows the concept of spacing. When the last swing low, in
January of 2011, remains above the last swing high, early 2008, it creates a gap called spacing. What
it says is that buyers were willing to buy at the last swing low levels without waiting to see if the last
swing high area would be retested, and that is a bullish statement. Additionally, the most recent swing
low from September is a higher low, and that, too, is a bullish statement. Next, we take a closer look
at another weekly silver chart.
The $33 - 35 area, +/-, is important for silver. Notice how we have drawn a flexible "horizontal" support/
resistance line to more accurately reflect reality, as opposed to the straight line most analysts draw.
This shows the resistance that silver must absorb and overcome before it can work higher. It also points
out how, despite all the calls for considerably higher precious metals prices, due to the inexhaustible
printing of fiat money around the world to prop up and disguise the failed central banking system, one
cannot underestimate the power and ability for the world financial powers to keep their Ponzi scheme
alive.
The charts are saying, not so fast. It may take many months, even a few more years before silver and
gold prices reach higher levels...at least, that is more a likelihood than otherwise, for now.
We lost our first weekly gold chart. It shows an even stronger spacing condition than silver. The
chart below shows a similar, but more bullish pattern than silver from last week. Both metals had a
lower week and relatively poor close on increased volume. The smaller range down on increased
volume effort should have extended price lower. The reason why price did not extend lower on the
increased effort was because buyers were absorbing whatever sellers were offering. This goes back
to our premise on the up trend of monthly chart. Sellers have to prove themselves, and last week
they failed to do so when they had the advantage to push price lower.
What we see for both gold and silver is reaccumulation from buyers doing what they have to do, and
that is to absorb the previous seller's efforts before any further markup can occur.
The daily charts do not show an uptrend. In fact, you see a clearer picture of all the overhead selling
resistance that must be overcome, first, and that will take some time. The last three trading days may
appear negative with the last two days closes on the lower end of the range. We see that more as a
lack of demand than it is sellers being in control. If sellers were in control, price would have been lower.
Despite those two days of selling effort, the gains made on a wide range bar to the upside, and on
strong volume, have held. In a sideways to lower market, that is a plus. All of this can change on
Monday, but we can only judge on what is known.
We point these observations out to show the developing character of the internal market composition,
and it looks more like accumulation, as mentioned, than it does distribution, where sellers would be
dominant.
The daily gold chart is similar, but relatively more positive, but even at that, this market also needs to
absorb the sellers above the 1750 - 1800 area, and that will take time.
Both markets need more time.
