The world has never been in a position like this before, where all global currencies are fiat and dependent upon central banker power. The push for a New World Order is inexorable, and make no mistake, the monied elites are fully in control, or almost so. We maintain this is why so many in the Precious Metals community have miscalculated the timing for when gold and silver would take off to the upside, collapsing the Fed's fiat "dollar," or as a result thereof.
Ukraine is truly the test where East meets West. It is the US-led coup that is a staging ground for an assault on Russia. Obama is leading the charge, once again, choosing the drums of war to get across the message that to challenge the supremacy of the "dollar" as the world's reserve currency, [as the ATM machine used by the elites to pillage the world's assets and remain in control], can have a serious outcome.
From a rational perspective, it is more than difficult to make sense out of the Kabuki theater conducted by the elites, but the consequences for challenging their power structure could very well become a theater of war.
On the surface, it appears that the East is almost in control of most of the world's supply of gold, while the West remains in control of gold's pricing mechanism, doing whatever it takes to preserve the fiat "dollar" as the world's reserve currency for international trade contracts. In addition to gaining control of physical gold, even setting up the Shanghai Gold Exchange, [SGE], as a more viable alternative to the literally "fixed' pricing of paper gold by COMEX and LBMA, the East is providing an alternative trade outside of the "dollar," and this has created a situation akin to the West as a dangerous cornered rat.
We put " " around the word "dollar" because in law, fiat Federal Reserve Notes, [FRNs] are NOT actual dollars but commercial debt instruments. Debt cannot be money. It is the opposite of money, so FRNs are a total deceit on the world.
The formation of the BRICS countries, seeking a better alternative for trade between nations, has been a natural outgrowth to by-pass the Western-controlled petrodollar. It has been the pluperfect implementation of the Rothschild formula for issuing a fiat currency and extracting the wealth of nations in return. The East, [BRICS nations and a growing list of others aligning with Brazil, Russia, India, China, and South Africa] has had its fill.
Russia has been coming back as an economic powerhouse ever since the central bankers, led by the US, crippled their currency that led to the dissolve of the USSR. China has become the 1,000 pound gorilla on the world's economic stage. China was double-crossed by the US during the Clinton administration when the Chinese found out that all their gold that had been entrusted to the Federal Reserve had been sold out behind their backs. The central banking elites never anticipated its total control of the world's financial system would one day be challenged, as it is now, by both China and Russia.
There is not much the US can do against China due to the high amount of Treasury bonds China owns. China could easily dump them on the world market and financially ruin the US, along with the rest of the Western world. The reason why China has not done so is because there is no alternative system that can readily replace the corrupt central bank control via Basil, World Bank, and the IMF. The BRICS nations are closer to setting up their own alternative banking system, but more time is required.
We cannot speak for how UK and the EU are viewing the US-led coup of Ukraine, but in America, War Lord Obama has been selling the situation as Russia trying to take over Ukraine, Soviet style, as it did Hungary and a few other nations. The US media refuses to report the truth that the coup in Ukraine was financed and led by Obama- as-puppet-for-the-elites in an endeavor to weaken, and ultimately destroy Russia.
The US has troops and/or military bases in over 185 nations. The US has been engaged in, or covertly initiated just about every war on the planet for 218 of its 238 years of existence. The US has been steadily encircling Russia, via NATO, for decades, with missiles pointed at that country. It may come as a surprise for Americans to learn that the US also have soldiers in former parts of the USSR.: Moldova, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, and now, Ukraine.
Russia has none of its troops or missiles in any other country, by contrast. Rest assured that Obama intends to get missiles into Ukraine, if at all possible. Obama lies to American citizens, and the world, about Ukraine every time he moves his lips, blaming Russia for the US-led coup.
The US spending on defense is greater than all other nations' spending combined. Russia spends around 5% on its defense budget compared to the US, yet Obama has been selling how much a threat Russia is to the United States, and its citizens are buying into the Obama propaganda, abetted by the controlled mainstream media. Almost 70% of US citizens think Russia is a serious threat to this country.
Unlike NATO bases surrounding Russia, a promise the US made not to let happen, but has obviously broken it, Russia has no missiles in Canada, Mexico, Central America, or elsewhere. Lest anyone forget how crazy the US became when it discovered there were Russian missiles in Cuba, precipitating the Cuban Missile Crises in 1962, and Cuba remains ostracized to this day.
This is what Obama said in a recent speech given at West Point: "Here's my bottom line: America must always lead on the world stage. If we don't, no one else will." Also adding: "Russia's aggression toward former Soviet states unnerves capitals in Europe, while China's economic rise and military reach worries its neighbors. From Brazil to India, rising middle classes compete with us."
Say what?! Who left the US in control of the world stage? Nobody. Where is Russia's aggression? Ukraine has been linked in some way with Russia since the late 18th century. What business has the Obama-led US being over there for any reason? Aggression? How about this: On May 1st, Christine Lagarde, head of the IMF, [It is the US that controls the IMF] told Ukraine that if they didn't crush the coup's opponents and force them into being controlled by the new Kiev central government, then the IMF would not make any further loans to Ukraine. It was the next day in Odessa that 272 coup-regime opponents were incenerated in the Trade Unions Building.
The US controlled, IMF-inspired threat to cut off funding led to the above massacre which sends the following message to anti-US interests there: "Support us or die." This is very much a part of the Rothschild formula for installing its New World Order. "Do as we say, or you will be crushed," in essence.
Why report all of this, and why should it be of any interest to you with your own interest in gold and silver prices? These are factors that keep the price of both metals suppressed as the US-led central bankers are doing anything and everything to prop up the "dollar." Gold and silver are the antithesis of every fiat currency. Destroy the currency and you destroy the US, UK, and EU economies. Expect the elites to fight to the death, if needed, and quite possibly come out ahead in some unexpected way.
These are not the only events that relate to the why and the when for pricing both metals, for the when prices may go higher could well pivot around Germany. At a minimum, this country bears watching. We are not familiar with the political structure of Germany, as we are with how the elites wormed their way into the constitutional Republic of the United States, which no longer exists, thanks to the Rothschild-unleashed, financially destructive central banking empire.
We know that when Hitler and Nazis were defeated, Germany was restructured by the elites to become a part of the central banking system. In the US, corporations are an integral part of the fascist style of government, and totally under control of the elites. Whether that holds true for Germany is unknown, for us. It is clear that the businesses [around 3,000 of them], that are affected by the Obama-driven Russian sanctions are not happy to have their financial viability with the Russian jeopardized.
Can the business sector win over the central banking stranglehold? Interestingly, there is a Yuan Swap Facility opening in Frankfurt as that city vies for an important piece of Chinese business, trying to co-opt London, if it can. Smart German business interests are likely to turn East, not for financial survival, but to thrive as an astute business country. As Germany goes, so, too, will the rest of Europe, and the US will become the financial piranha it strives to be. Pay close attention to this important nation.
Another thought comes to mind, re Germany being under the thumb of the financial elites. It is also possible that the elites are allowing this potential sway from a staunch Western game player to an important Eastern business factor. The elites are astute planners, and this could be their way of planning ahead by getting Germany involved in the inevitable rise of East v the equally inevitable decline of the West, much like a sleeper nation while they continue retain control behind the scenes. This makes sense.
Gold and silver are likely to remain locked in their protracted bottoming phase, now in its third year. When will they break free of the central banker's manipulative shackles? It seems more later than sooner, still. This outlook can change next week, next month, next year. All we can do is assess the present tense and deal with what is and not what anyone wants "is" to be.
All opinions and conjecture aside, the most accurate gauge for determining what is likely to occur in any market comes from information provided by the market itself. What the current activity shows for weekly gold is the absolute absence of any sign[s] of a turnaround.
Price dropped on an increase in volume 2 weeks ago, declining from a small sideways move that could have gone either way. It went the way of the prevailing trend, an example of what to expect from market behavior when a trend exists.
The exceptionally small TR of last week does not provide a strong clue, either way. Given that the trend is down, the small range says buyers were so weak to not extend the range higher. On the other hand, sellers have the advantage but did nothing to press the market lower. This is not a toss-up observation because in a down trend, sellers have already proven control. It is the buyers who must show a change. The small range probability read goes to the sellers for this reason. Buyers may show up next week, but next week has not yet happened, so we deal with what is known.
The small range noted on the weekly shows all daily activity was contained by the previous Friday's bar range. The chart comments explain the two possibilities, with sellers having the edge to send price lower. That can only change if buyers show up, next week.
With world events developing as they are, mostly not making any sense, especially from an economic reporting perspective, there is no question that one should actively continue to buy physical gold and personally hold it. If you do not hold it, you likely will never own it. Paper ownership is only for the foolhardy.
The August '13 swing high was also a LH, not labeled as such on the chart. As with gold, there is a distinct absence of any ending action that could or would lead to any kind of lasting rally. This is why we mentioned last year that it would take longer than most are expecting to see a rally in the PMs. That was mentioned again in mid-April with our article that 2014 could be a yawner, here, if you missed it.
It takes time to turn any trending market around, and neither silver nor gold have given any indication that a definitive bottom has been reached. All of the talk of shortages, likely exchange defaults on deliveries, [no deliveries are occurring, so a default has already occurred], unsatiated demand from China and elsewhere have done nothing to turn the PMs around.
This is why we stress the importance of watching current developing market activity. One does not need to know or understand all the fundamentals, and one does not need to read or interpret any kind of mechanical trading tool, like RSI, Stochastics, Moving Averages, Elliott Wave, whatever, etc, etc. They are all past tense aggregated information applied on present tense price information, "hoping" to divine yet-to-happen future price behavior. Good luck with that.
Same story for the daily chart of silver. Where are the buyers? Absent. Until they show up, in the form of increased price and volume that rallies above resistance, expect sellers to remain in control, manipulated or otherwise.
As with gold, one has to be buying physical silver at these levels. This is the "last hurrah" for sellers of every kind. It may be weeks, months, or even longer before price levels go much higher than where they now are, but once they do, there will be no looking back, and buying the physical metal may not be so easy. Be smart and buy physical silver. Do not be in doubt.