Gold and silver have no third-party counter risk. Both are debt-free and with a proven history for having an intrinsic value. Those who choose to ignore history and opt for paper fiat, instead, not only run the risk of further erosion in perceived “value,” but now have the added risk of bank confiscation of all deposits, which thanks to more Obama and Federal government laws passed, means your deposits are owned by the banks. Once in, it ain’t yours any more. That is significant information.
What is of more immediate interest is the fact that the rigging, or as has been called rather appropriately, the London Gold Fix as determined by four participating bank “fixers,” is about to come to an end this coming Friday, 20 March 2015. Taking control will be the International Commodity Exchange, and it opens the door to Chinese banks to become participants, at some point.
Silver is at a support area from November ’14. The small range of last week on increased volume takes on increased significance. The odds favor a rally, but it does not mean the down trend has ended. Considerably more evidence is need to make that determination, and silver is far from that, at this point.
There is little about which one can get excited in this chart. The activity is developing in the middle of a down trend channel. It has a slightly more positive aspect about it, but nothing is clear enough for making a more definitive statement. The weekly chart does that.
weekly gold’s smaller range on obviously much higher volume is a clearer
indication for a rally of some degree, next week. To what extent cannot
be known, but it will be within the context of a bottoming process.
That process has yet to make clear if a final bottom is in.
Interestingly, where the weekly gold chart was more definitive than
silver, the daily silver chart held its support area where gold did not. As with silver, gold is likely to have some kind of rally, next week.
