The catalyst will not be how much gold China owns. The catalyst will be the fall of the petrodollar. Once that happens, checkmate elites. Game over US. Gold and silver, rise to your natural relationship between supply and demand, no longer being
Watch out for weekend surprises. When people least expect, and/or are in a position to least react, some kind of announcement could be made that devalues the fiat Federal Reserve Note.
These are the reasons why we keep exhorting everyone to buy gold and silver. Price is immaterial, having it is all that matters. Having gold and/or silver is what will keep you financially viable when this country falls apart, and fall apart it will.
Submitted by ETP:
For the past year, we have been saying that the charts for gold and silver are likely
bottoming in a normal manner, and it takes time for a this kind of formation to complete
itself. It remains the case, to date.
What is likely to cause a sharp price reversal to the upside for gold and silver? If both
were allowed to simply adjust to inflation, you would see a fairly substantial rally. Given
that will not be the case, what will be a/the catalyst for a precious metal [PM] change in
Could it be enormous purchases of whatever-is-available physical gold by countries like
China and India? No. That has been in the works and a known fact for a few years now,
and gold continues to languish near recent lows.
How about prospects for a U S-prompted breakout of war? [No other country seems
interested in starting one.] No. Libya failed to ignite anything, nor did the Arab Spring
or the ongoing Syrian situation where the US sees chemicals everywhere, except in rebel
What about Iran and its “nuclear proliferation” that needs to be stopped? No. Pakistan
and North Korea have nuclear capabilities well beyond that of Iran, so a nuclear threat
from a country that does not have nuclear capability is another US false flag. What Iran
does have that neither Pakistan nor North Korea have is oil. Wait. Are not all contracts
for trade in oil based on use of the petrodollar? The first “yes!”
How about the US-sponsored coup d’etat in Ukraine as an instigation for war? No. It
has been well-checked by Putin, so far. Wait. Are not all contracts for natural gas trade
based on use of the petrodollar? A second “yes.”
What about the loss of the petrodollar as a world reserve currency? Would that cause the
prices for gold and silver to rise dramatically? A huge yes for that one.
Come to think of it, the reason for the US-led invasion of Iraq was due to Saddam’s
cache of Weapons of Mass Destruction. Turns out, there were none, but Iraq did have oil,
just like Iran, and both countries were selling their oil for gold, by-passing the use of the
US fiat-issue petrodollar. The elites have consequences for when their rules are ignored.
Iraq was invaded, and partially ruined, and Iran has been economically sanctioned
Syria is not known as an oil-producing nation. True. That is not the threat to the US.
What is a threat is the strategic location of a Syrian port used as an integral part for
sending Russian natural gas to Europe. A successful pipeline that is not run by the US
is a huge concern, especially because the natural gas coming from Russia will not use
the petrodollar. Without the petrodollar standard, the US cannot export its inflationary
fiat to the rest of the world.
Countries that use the petrodollar hold large quantities of US treasury bonds to facilitate
trade agreements. If countries, let us say like Iraq and Iran, stop basing oil trade on the
petrodollar, other countries will follow suit. The elites cannot allow this to happen. Both
countries are relatively small compared to the BRICS alliance, of which China is fast-
becoming the world’s biggest energy user. All of the BRICS nations,[Brazil, Russia, India,
China, South Africa], and a host of other countries are starting their own trade
agreements, and guess which country is “odd man out?” The elite’s own United States.
The elites cannot allow this to happen, but they cannot stop it, either. This is a problem
While everyone is focused on the demand side for gold, doing all kinds of calculations,
trying to figure out the real number of tonnes China has purchased. Our simple answer:
a lot, and the real number is of no consequence.
All of the charts depicting countries purchasing gold, graphs showing the depletion of
COMEX, LBMA, GLD, et al, are well done and nice to look at, but none address why the
price of gold and silver are at relatively low levels, these days.
Gold, more so than silver, has been purposefully suppressed to keep the fiat petrodollar
propped up. The elites will stop at nothing to prevent gold from being recognized as an
alternative to their Western world fiat Ponzi scheme. Why has the elite-puppet Obama
been continually enabling and prompting the illegally sponsored coup in Ukraine?
The US is fighting to keep the Wizard behind the curtain from being exposed for the fraud
that it is. The fraud is the fiat Ponzi scheme and the utter insolvency of the entire Western
central banking system. What keeps it alive, actually more on a respirator, at this stage, is
the grip over the entire Western world political system which is designed to keep the
masses enslaved to the debt system from which there is little hope of escape.
There is a reason why there has been such a militarized build-up in the United States,
used against certain countries to keep all other countries in line, lest they be next. The
militarization of local police forces, with their highly armed swat teams, former military
vehicles being “donated” to cities and towns. This is by elite design to have the means of
keeping the masses under control, no match for the excessively armed police. This is
why elite-kisser Michael Bloomberg, who has turned the NY police into a virtual private
military, and why he has been busy campaigning for national gun control. A population
with no means to defend itself is an easy target to keep under control.
Chicago has some of the strictest gun-control laws in the nation, yet crime and death
by gun is amongst the highest in this country. What will more gun controls accomplish?
Nothing. Not a thing. All that needs be done is to enforce the gun laws on the books,
but that would not solve the disarming of the people, which is what the corporate federal
government wants in order to eliminate all forms of civil resistance.
We got a little off topic re the threat of dismantling of the petrodollar, and with it the rapid
fall of the United States into a third-rate country drowning in debt with no way out. The
elites can ill afford to lose its primary ATM machine that feeds the top .0001% who profit
by controlling all the money. All of these seemingly extraneous events are really tied into
the control of the powerful and power-hungry elites. The Rothschild crowd.
As was stated last week, we know of no sentence that has had a more profound effect
on the people of the world than the one uttered by Mayer Amschel Rothschild, “Give
me control of a nation’s money, and I care not who makes the laws.” [See Power Of
Elites More Important Than China's Gold, 5th paragraph and the ones following as
Why is it that 2014 may be like a repeat of 2013 in failed expectations for gold and
silver to reach new highs and beyond?
For as long as the elites maintain their monetary power to destroy countries via their
imposition of financial terrorism, [Greece, Cyprus, Ireland, Spain, et al, and now
trying to gain financial control over Ukraine, in desperation. The utter inability of
Germany to repatriate its own gold, to which one should ask, why is Germany not
in an uproar over this? Hint: Power of the elites to keep Germany in line.], the price
of gold and silver will take time to turn around.
The catalyst will not be how much gold China owns. The catalyst will be the fall of
the petrodollar. Once that happens, checkmate elites. Game over US. Gold and
silver, rise to your natural relationship between supply and demand, no longer being
The problem for now? There is no viable alternative to replace the broken fiat
petrodollar scam. The Chinese have already made clear that they do not want their
Yuan tied to the price of gold, and China is not really equipped yet to have their
currency be a substitute world reserve, emphasis on the adverb “yet.”
Russia’s ruble is not sufficiently held by other countries to make the ruble a reserve
currency. It is in a position to grow into that status, but not in the near future. Which
country has the ability to replace the petrodollar? None of which we are aware. The
BRICS nations are successfully building an alternative to trade that eliminates the fiat
petrodollar, and that, more than anything else in the interim, poses the biggest threat
to its demise.
We could see a marking of time during which all of this continues to unfold. No one
has a clue as to the how or to the when, which is why 2014 could be an extension of
2013. The way in which Obama keeps prodding Russia could precipitate an event that
escalates out of control, just possibly, as an example. This is why we say to watch out
for weekend surprises. When people least expect, and/or are in a position to least react,
some kind of announcement could be made that devalues the fiat Federal Reserve Note,
still wrongly called the “dollar.”
A few paragraphs back, we said the there is little hope of escape. For as long as the fiat
monetary Ponzi scheme exists and people remain tethered to it though debt, dependent
upon government through assistance/subsistence, there is no exit. The only means, or
perhaps the best means is through the buying and personally holding physical gold and
silver. Both PMs represent a form of wealth that leads to independence from control
of any government.
This is why the Rothschilds took over this country via the Federal Reserve Act, ["Give
me control of a nation's money, and I care not who makes the laws."], gained control
of the money, and then once in control, had FDR make the Executive Order to have
“all persons” turn in their gold under penalty of $10,000 and/or confiscation. This
was also another sham that fooled people into believing an Executive Order applied
to them, which it did not. But that is how the Rothschild formula works, through
[We keep repeating the Rothschild sentence about control over the money supply
because once you comprehend how it is the genesis for all what ails people in their
own country. Governments are nothing more than instruments for elite control over
These are the reasons why we keep exhorting everyone to buy gold and silver. Price is
immaterial, having it is all that matters. Having gold and/or silver is what will keep
you financially viable when this country falls apart, and fall apart it will. The US has
been hollowed out since the Rothschild central bankers took over in 1913, in a
financial coup d’etat.
On a final note, before reviewing the charts, a second interview conducted by SGTReport
has been posted on the site. Here is the link for anyone interested. The Rothschild IMF
Bankster Fiat Death Machine. The title was selected by Sean of SGTReport, and it gives
a clue to some of the content discussed.
There is not a shred of evidence that the price of gold is about to embark upon a much
higher trajectory. This is the value of reading developing market activity within the
context of all the world news and events that potentially impact price. What the market
is saying is that nothing in the news is disturbing the bottoming process. What people
are saying about the market may be a different “story,” but it is the market that has the
final say. Pay attention to it.
What we are paying attention to in this chart is the volume spike. Whenever you see a
sharp increase in volume, the immediate question to ask is “why?” Remember, it is not
the public that creates volume. The public reacts to it. Therefore, almost always, any
increase in relative volume is indicative of “smart money” activity.
When volume increased while price was declining, one would naturally expect to see more
downside follow through. When the opposite happens, it is worth paying closer attention.
The lack of further downside suggests buyers were overcoming sellers, shifting market
composition from weak into stronger hands, and that is positive for a market trying to
form a bottom.
The daily chart confirms the weekly. The read of the developing market activity prompted
a buy recommendation at 1291. Because of our own trading rules, a sell, about $18 higher
was made a few TDs later. Price is still under a half-way retracement from the March
swing high to the recent April swing low. On the wide range bar lower, market “S/D,”
which indicates Supply overcoming Demand, a thin horizontal line was drawn off the
high, a place where sellers will defend a retest. That high is just above the 50% mark of
the trading range. The confluence of two separate indicators could make the 1335 area
resistance on a rally to that area.
For now, it looks like gold can be bought on breaks, based upon whatever rules one has
for establishing a position in the market.
While silver is not showing signs of strength, it is showing signs of resistance to downward
selling pressure. It has taken 5 – 8 weeks to correct the previous 3 week rally, shown on
the chart. This tells us that even in a weakened state, silver is showing an ability to rally
with greater ease than decline. Little signs like this can be the forerunner of more change
to come. Preparation becomes important in order to take advantage should a buying
opportunity present itself.
Here we see the importance of reading developing market activity. You look for patterns
because they repeat, over and over. We discussed a volume situation in weekly gold, and
here it shows up on a daily silver chart. The patterns will not always be exactly the same,
for good reason, but they sure do rhyme a lot.
The increase in volume at an area of support is not random. Markets are not random,
except for those who have no clue about what price and volume can consistently reveal.
We look for these repeating patterns to be prepared for opportunity when it strikes, for
when a pattern is recognized, it is the market’s way of offering an edge. The most
important part of seeing these behavior patterns is to know how to respond to them as
they occur. How do you know how to respond? You devise a set of trading rules that
fit the pattern behavior. Everything then become a function of following your rules of
engagement. Nothing is left to chance. This is how skilled professionals trade. Therein
lies a message.