According to the fundamentals, gold and silver are severely compressed coiled springs looking for an opportunity to release their tremendous power.  Yes, it is true, the precious metals still hold a great deal of power.  Which is why their prices are constantly controlled by market intervention.

Of course, the market intervention of gold and silver didn’t start recently.  Oh no, this has been going on for quite some time.  Even though the Central Banks and Gadflies on the financial networks have been able to BAMBOOZLE the public into believing gold is a “Barbarous relic”, fundamentals and the laws of nature can’t be broken forever… as serious consequences normally follow.

When I read comments from supposedly intelligent people who believe gold is nothing more than a “13th century Middle Ages relic”, and “that digital currency is the new future”, what in the hell happened to IQ levels recently???

There seems to be this notion put forth by many in the Mainstream and Alternative media that “TECHNOLOGY” is going to save us all and be the new religion of the future.  While I have nothing against technology per say, it will not be the solution to our extremely serious energy predicament we are about to face head on.

For example, there are several voices out in the Alternative media suggesting that “Alien technology” will be finally released into the world, thus allowing our ADVANCED EMPIRE to continue indefinitely.  This of course would be a great benefit for Americans as it would allow them to continue filling their homes and rental storage units with all sorts crappy consumer products.

According to the supposed history of Alien encounters on the earth, they have been toying with humans for quite some time.  So, the idea that they will allow us to use some of their technology to save a species that shows such a high degree of IGNORANCE, STUPIDITY, CRUELTY & GREED, doesn’t pass the smell test to me.

Hold on.. I can take that a step further,  How many EMPIRES have come and gone in the past??  Okay, we had the Egyptian, Persian, Roman and Mayan Empires to name a few.  You would think if Aliens were going to start saving humans from being the POOR UNWORTHY SLOBS they have been for thousands of years, they would have done so already.  Wouldn’t they??

But, maybe we finally passed the test for our species, and now the Aliens think we deserve a break…. just like a freshly opened bottle of Coke.  Yes, that’s it.  We have passed the test of being WISE, PRUDENT, CARING and GENEROUS with one another, the plant and animals… and let’s not forget the environment.

On the other hand, logic suggests we are about to hit another SENECA CLIFF just like all the other prior empires that dried up and blew away…. and quite quickly, I may add.  So, even though there may be more intelligent life forms roaming the galaxy, it doesn’t seem quite likely they are going to waste much time on a species that has totally run AMUCK.

Which means, we little people here on earth are going to have to take it upon ourselves to continue on-wards when the GREATEST FINANCIAL PONZI SCHEME finally pops.  And pop it will.

The Gold & Silver Coiled Springs… Storing Tremendous Power

Over the years, monetary power shifted away from the precious metals and over to the FIAT MONETARY REGIME (a debt-based worthless paper currency system).  This stared long ago, but if we have to put a date on it, it would be 1969.  I will get into the particulars in an upcoming article.  However, the notion (again) that gold is a “13th century Barbarous relic” fails to consider that the world ran on a Gold-Backed U.S. Dollar system up until 1971.  This wasn’t that long ago.

Moreover, we still used silver in our coinage up until 1965.  While some silver coins, such as the Kennedy Half Dollar, were still minted for the general public up until 1969, silver was removed from U.S. coinage in 1965.

The real reason that silver was finally removed from U.S. coinage in 1965, was that it was too valuable to be used as money…. LOL.  I know that sounds silly, but that is the truth.  Now, when I say “money”, I mean what it has degraded to over the past 50 years.

There just wasn’t enough silver to go around to meet the insatiable demand coming from the expanding industrial and jewelry sectors.  To use silver in coinage as well as supply future industrial and jewelry demand… there just wasn’t enough of the shiny metal.

This is exactly what President Lyndon Johnson stated during his comments after signing the 1965 Coinage Act:

Now, all of you know these changes are necessary for a very simple reason–silver is a scarce material. Our uses of silver are growing as our population and our economy grows. The hard fact is that silver consumption is now more than double new silver production each year. So, in the face of this worldwide shortage of silver, and our rapidly growing need for coins, the only really prudent course was to reduce our dependence upon silver for making our coins.

Well, there you have it.  While the grand conspiracy that silver was removed from currency to give more power to the elite may hold some truth, the REAL REASON was much more simple.  There just wasn’t enough silver to go around.

Furthermore, I really don’t believe the elite are really as smart and clever as some make them out to be.  Again, if we go back in history and look at all the EMPIRES that have come and gone, you would think that the elite would have had a better plan than allow everything to go to hell in a hand-basket… time after time.

We must remember, back in day when the world was using silver as money, life was a lot simpler.  There were no cell phones, or I-pads.  There were no electronics or solar panels that required silver.  Rather, we basically spent most of our time walking around dressed in glorified burlap sack clothing, growing food or producing simple consumer goods, while enjoying a bath once a week.  Gosh, how times have changed.

Regardless, the days of the Fiat Monetary Regime are numbered.  There’s just too much debt and derivatives over-hanging the system to allow us to continue for much longer.  Thus, in order to keep the Fiat Monetary Regime alive, the value of REAL MONEY, such as gold or silver, has to be kept in the DARK.

If we look at the following two charts, we can plainly see that gold and silver are both standing at the doorway of a major inflection point:

Normally, I don’t pay much attention to “Technical Analysis”, but in this case, we are on the verge of a very critical technical breakout.  Of course, this is more important for Hedge Funds, Institutions and large traders to follow, but in both charts, the gold and silver price remained above the 50 MA (50 month Moving Average) for a decade.

However, when QE3 was announced at the end of 2012, Central Bank liquidity made its way into stocks, bonds and real estate.  The precious metals were left out to dry.

If we recall from the quote above when Lyndon Johnson stated that silver was a scarce material over 50 years ago, it’s even more scarce today.  The same with gold.  When the gold and silver prices were knocking on the DOOR to reach new highs in 2012, this just could not stand.

Which is precisely why both gold and silver’s 50 MA level (RED LINE) and have fallen below and stayed there for the past four years.  However, both precious metals are once again tapping up against that 50 MA.  They first tapped up against the 50 MA in 2016… for good reason.

When the Dow Jones Index was scaring the living hell out of the markets by rapidly falling in the beginning of 2016, investors were getting a HINT of PRECIOUS METALS RELIGION.  Thus, investors flocked into gold and silver (gold and blue colored lines) in a big way, pushing their prices up as the Dow Jones Index fell nearly 1,000 points during five trading days in the beginning of February 2016:

This isn’t rocket science.  FEAR provides an excellent motivation for bringing people back to their senses.  However, this was just for a short while as the Fed and Central Banks ramped up their stock and bond purchases.  God only knows just how insane this amount must be.

Thus, calm was brought back into the markets allowing investors to go back to being TOTALLY INSANE once again.  Unfortunately, duct tape, baling wire and hot air cannot keep a market from succumbing to the fundamental laws of real economics.

The Dow Jones Index is so inflated, it’s overvalued by at least 60%…. for starters:

According to the economic contraction cycle that occurs about every six years, the Dow Jones Index is severely overdue for a good ‘ole fashion beating.  If we assume that a normal correction for the Dow Jones would be for it to fall to about 8,000 points, the index is overvalued by at least 60%.   And that is just for starters.

As I have mentioned in previous articles, where we are heading is nothing like anything we have experienced before.  Well sure, we could go back and look at the remains of the Egyptian, Persian, Roman and Mayan Empires for clues, but this would not be a good topic to bring up at the next family gathering or office party.

We must remember, most Americans are way too busy spending money they don’t have on crap that they really don’t need, to be bothered with the TRUTH that we are going to go head over the SENECA CLIFF, and there isn’t anything to stop it.

For all those who are new to the alternative media, the SENECA CLIFF came from the work of an ancient Roman philosopher, named Lucius Seneca.  According to Lucius Seneca (published on Ugo Bardi’s blog):

increases are of sluggish growth, but the way to ruin is rapid.” Lucius Anneaus Seneca, Letters to Lucilius, n. 91

Like it or not, we will most certainly experience the ramifications of the SENECA CLIFF in the future.  Unfortunately, technology will not save us from this fate.  Rather, the more technology we use to try to solve our dire energy predicament, the worse the cliff dive will be.  I discussed this in my article, CONTINENTAL RESOURCES: Example Of What Is Horribly Wrong With The U.S. Shale Oil Industry.

While I am being a broken record on this subject matter, I continue to receive new subscribers every day on the site.  Furthermore, the more individuals look at this data and information, the more LIGHT BULBS go off.  It takes time for this stuff to sink in.  Heck, it has taken me years to come to this realization.

Lastly, the value of gold and silver are going to skyrocket in the future.  However, I have no idea how bad things are going to be when the PHAT DEBT LADY finally sings.  But, at least physical precious metals will offer much better options in the future rather than 99% of the STOCK, BOND and REAL ESTATE liabilities out there which are masquerading as assets.

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44 Comments on "POWERFUL GOLD & SILVER COILED SPRINGS: Important Charts You Have To See"

  1. Hi Steve,

    I think the lack of knowledge of history is what makes this fiat ponzi so great. The chinese were the first
    whom experimented with fiat money it is for most govt just too tempting not to use this. It is simply the best way to steal the fruits of the labour of any country. Now with the banks owing most govt it is even more profitable for 0.001% elite. You know this story of John Law how he destroyed France for 100 years and how he tried to escape France and was caught and what did he carried with him yes gold of course.
    There are hundreds and hundreds of these sad stories of countries using fiat money. Sadly the west forgot all their history as it is a great way as well to plan and execute wars with money a country does not have really.

    Now this game is global and electronic so crazy printed in bubble fantasy land that govt desperately want to establish a cashless society and this is their fatal flaw as this will be the end of any ruling govt
    who wants to execute this kind of politics, it will btw bring Gold and Silver back on the money throne without any doubt.

    As Keynes used to say at the end it is does not matter as we all will be dead, and this is probably the best way how these banksters think. Now with the age of internet daily thousands of ppl are waking up and understand the farce of the fiat system. How long will their propaganda work I guess how long they can elivate the stockmarkets but the piper will have to be paid and these are very dangerous
    times as well if you take in account the energy situation. My bet is that govt around the world will go for the only route as they have done always to stay in power just inflate more the fiat money. I am not so sure if the Dow will crash we could see even much higher Dow numbers.


  2. All empires fall because the elites have greed.

    • There are no good elites, that’s their nature.

      • Personally I despise the term “elite”. They are elite only in their criminality and evil being right up there at the top of society. For lack of a better term, I prefer to refer to them as the “elite scum”. I’m open to any better terms if anyone can come up with one.

        • “Parasites” would be a much better description.

        • ‘Elites’? They are not elite. ‘Dominators’ is more accurate. ‘Tyrants’ is also better. ‘Presumptive Authorities’, ‘Narcissistic Psychotics’, ‘Dictators’, ‘Parenting Presumers’, ‘Moralistic Supremacists’, or just ‘Supremacists’, ‘Egotistical Authoritarians’, ‘Conceited Bullies’, ‘Unconscionable Determiners’. I am still trying to come up with the perfectly accurate descriptive term. Meanwhile I use these. Wisdom begins by calling things by the right names.

          • How about Empirical Assholes?

          • rrrr True that.

            A lesson from history:
            The grass roots whiskey making business flourished until 1791, when the new federal government decided to tax it to pay the debt for the revolutionary war.
            The people revolted against this odious government measure, often turning away the excise collectors by armed force.
            By 1794 George Washington called out the militia to put down the rebellion. He called out more troops to put down the whiskey rebellion, then he used to defeat the British during the American revolution!
            Ironically, George Washington started making his own whiskey at Mount Vernon and by 1799 when he died, was the largest whiskey producer in the United States, after decimating the grass roots producers by way of the power to enact laws and enforce them.
            It should be noted that the taxpayer footed his own bill, for his own economic destruction. The more things change – the more they stay the same.

    • Jesus called them money changers and overturned their dealing tables but that was when people owned real money, today they have taken over money so maybe they should be called Currency Marauders or to be kinder PLUTOcrats – – which is where we should send them in the next crash when they will take everything (except secret stashes of solid stuff) and they will issue Company tokens to be spent only in Company stores – modern slavery?

  3. The prime reason that the big institutions , central Banks , wall street , and governments around the world could pull off the greatest scam / scheme in history was because of years and years of convincing the masses that- ” what’s in it for me ” means EVERYTHING . Instead of common sense approaches to determine worthwhile investments like physical gold and silver , these sheisters have been snowing the public with phony investments, all of which will fold like a cheap camera once the house of cards worldwide starts to crumble.By investing in the physical one can realize true independence from mass chaos .

    It’s kind of a shame that these lemmings didn’t truly listen to their 3 brains (head ,heart , and gut ) to steer away from the snake oil philosophy of hedge funds , etf’s , stocks , and other futuristic BS based on nothing but BS. C’est la vie !

  4. Keep howling partner, that was down right funny as hell and on point….


  5. I appreciate your work in general but this article was refried beans from five years ago.

    • John,

      While you may bring up a good point, I would kindly like to remind you that I receive a quarter of a million views, or more, a month on my site. 40-45% are NEW VISITORS.

      So, we have to make sure we are good HOSTS to our new guests and provide them information that many of us may already know. I would imagine, you would agree.

      Moreover, I try to add new information and include a bit of humor to keep things interesting.


      • Yep

        Plus it’s often good to revisit an old point from a ew angle from tome to time

        Helps to reinforce the point being made

        If anything the tired old points need to be reinforced even more, as the ppl getting up out their cinema seats and heading for the fiat exit doors gains momentum, people need perspective on which way to turn next as they have a lot of noise being shouted at them about Bitcoin/Cryptocurrencies, Gold/Silver stocks and of course physical etc etc

        Bitcoin vs gold/silver debate will be an intense one i reckon!

    • “this article was refried beans from five years ago.”

      and you’ll see it five years from now too.

  6. I understand. My apologies.

    • John,

      No worries at all. To be honest, I am tired of the same old song and dance by many in our industry. That is why I try to provide updates of what is changing in the markets. However, some days it’s hard to put original content. So, I make the effort of rehashing things with a bit of humor.

      Anyhow, I just checked and 40.1% of my total visits last month were from NEW EYEBALLS.

      Which means…. more and more people are waking up.


      • That’s a lot Steve 40.1% eh? Do you know how many of them come back?

        I had an old friend tell me during the week he was selling one of his investment houses, upwards of $500,000.00. I said to him, “What are you going to do with the money, put it in the bank”? He said, dunno.

        I see this guy every week and every week I ask; “Did you buy any gold or silver this week”? The answer is always a shy “NO”.

        I have another friend who rang me the other day and told me his superannuation will return him $80,000.00 per year when he officially retires in two years time. I asked him the same question, “How much gold or silver have you bought”? He didn’t like telling me he had bought none!

        I have stacks of these stories and they come from people I have known for years. As a matter of fact I must be the worst salesman ever because I don’t know any of them who have bought any gold or silver.

        Maybe they are lying or telling me fibs Steve eh? ….. Lol

        • Johny Comelately | February 24, 2017 at 2:46 pm |

          People don’t listen. I have similar stories to tell. And to some degree I’m guilty as well. I could have bought 100 Bitcoins when it was $12. Now I’m contemplating whether I should buy 1 Bitcoin for $1200. When I do buy one It may cost me $2000.

          • I first heard about bitcoin in spring 2012 and dismissed it for silver… enough said. At least I can still laugh about it. But when TSHF one wants fizz and no bitcoins. Investing in bitcoin is also con-game IMO, and how long it will continue is anyone’s guess. Probably as long as the internet remains intact? And that will likely relate to the energy crisis that Steve warns us of.

  7. Lol got a good laugh out of the Alien stuff

    Even if the tech did come in, won’t lead to economic prosperity or vibrancy if everything is still rigged fiat

    Doesen’t necassarily lead to a healthy state within people either, given there’s a lifestyle entitlement complex and people want a “pill for everything” rather than revise their priorities or lifestyle choices etc

  8. II gave a speech on peak oil about ten years ago to a limited group of intelligent people but a group that knew nothing about it. I tried to keep it upbeat. Aforward, I young women came up and discussed the speech. She said “Ed if this true, then it’s the end of the world”. I suspect the general public that argues with you has the attitude. They know it is true, but do not want to confront it.

    I way I see it. We have two paths. Collapse from an energy /economic collapse. Or a machine technology takeover of humanity. I tend to think the collapse seems more likely. Technology seems fragile and an energy hog. However, can it advance fast enough and far enough to save us? Also, if machines took over would they want or need 8 billion people in the worLd?

    One thing is for certain the status quo will not be maintained forever.

    • Population is finite as well Eddy. If there are 9 Billion people in the world today; in 50 years time we could well be back down to 7 Billion.

      My kids will have to worry about that one… Lol

      • DisappearingCulture | February 24, 2017 at 10:08 am |

        My personal belief or guess is the population will be substantially less than 7 billion in 50 years. What is substantial? More than a billion less. Again just my opinion.

        I will be one that will be toast before then lol

  9. Technology could, and always did save ‘us’ — when ‘us’ developed and used it. Energy in applied meaning of the term is synonymous with technology: Maltus was right, but coal technology completely changed the situation with energy at the time. In other times and places, in all the bygone empires, that did not happen despite the fact they were sitting on and standing under or by all the physical energy they could need. But they did not develop the technology to apply it. And this time, due to prevailing mass stupidity, this civilisation is following them into oblivion. Nuclear was never meant to be a measly 15% or so of power generation — it was meant to be 100%, and Hubbert’s chart shows it unambiguously. Instead of developing it with prudence and perseverance, it was left half-done by most countries. Some reached about 75% (France), but that is an exception. Fusion was always funded below the ‘fusion never’ level, there is a nice chart for that too. Now, decades too late, the last mad rush is ongoing, with Tri Alpha Energy and some others dusting off old ideas and designs, rushing them into prototypes, but there is no guarantee of success — development of such technology cannot be rushed. China starts buildint EIGHT nuclear units this year — 10GW of nuclear power in one year. Now that is a mad rush even by Chinese standards, as they do not plan to go into oblivion. Those who do go there, cannot blame technology or a lack of it, they can only blame themselves. Nature tends to correct its mistakes.

  10. As always Steve, great work and great charts too….please carry on your good works for us, thanks.


  11. Nice article Steve

    But if you don’t mind me asking it seems that there is a bit of a paradox. On the one hand it’s clear that gold and silver are a store of energy. As you’ve outlined they are priced by production cost which is highly linked to the cost of oil. However as you say and as is well documented we’re headed over the thermodynamic cliff. It’s unavoidable. So here is the problem how on earth can gold or silver benefit anyone if it can’t be converted back to energy? You can’t eat it and no one will trade their food for it. You can’t heat your house with it. It seems to me rational thinking would suggest that all gold and silver mining should end immediately to preserve energy stocks. As a matter of fact it would be better to stop trucking the worthless stuff around and grow more lettuce. I’m sure the Brits would agree with that. The point is once the energy is expended you can’t get it back. Wealth won’t bring it back. This actually happened to 16th century Spain. Their abundance of gold became valueless because it was the acquisition of the gold that built wealth not the accumulation. This is true of Capitalism as well. Debt represents accumulation however without conversion it has no value. It doesn’t matter what the means of storage is. Unless of course it’s eatable.

    • Gold and silver can be traded for other forms of stored energy. Like potatoes. Or a screwdriver. When the paper iou mess blows up due to the lack of growth through surplus energy, there’s no currency anymore. Gold and silver in physical form can help you during the transition. That is, if we’re still alive. Its not a guarantee, its an insurance. Keeping 300k in a bankaccount is not an option imho.

      • Ok and the government seizes gold as it has in the past. Then what? I’m just saying it won’t matter there is no transition that men can achieve. Once petroleum fails so goes the food supply. Who cares about gold then? Once the grid fails the world goes radioactive from failed cooling ponds as nuclear plants. If anyone has a potato they’re going to eat it before they eat each other. But no one will care about shiny metal unless it has a sharp edge.

        • I have this question: do governments know what we know?

          • JT, when .gov does know, or is being forced to act, there’s a real possibility they’ll close banks for a few weeks and come up with new ‘money’.

            That’s when phyz metals come in handy. But you are correct, when you consider our options regarding food production, my hands become a bit sweaty.

            I stack. Food, waterfilters, good qualty tools, pm’s etc.

            When the grid goes down i’ll try to choke myself in a silver coin. Thanks for your interesting comments over here and at ofw.



        • It won’t be the government seizing gold. At least not the couple of ounces you have in your sock drawer. If you’re worried about confiscation then buy silver. What amazes me is that you didn’t mention anything about the ongoing government confiscation of your Dollars through taxation and inflation. The government would be wise to let Gold and Silver rip up and then tax you on the new house and car you purchase.

          The government has over 200 Trillion in unpaid liabilities. That’s why interest rates will never leave 0-2%. The reported government debt is over 1 Trillion annually. The trade imbalance was 500 Billion plus for 2016. Good luck with the Dollar, your pension, your 401K…etc. I don’t know the future, but I think my assets should be in tangible goods. Silver and Gold are tangible goods in demand and recognized globally as money. The Dollar has all the signs of not being around much longer. I don’t want to be trapped in the Dollar when the producing nations of the world stop accepting the full faith and credit of the U.S. government.

        • JT Roberts , that sounds cynical enough. Only one thing . It’s been proven time and time again that somebody will have something in the form of assets , property , food stuffs , animals , etc. , who will view both silver and gold as a tangible means of exchange. And as for ” the government seizes gold as it has in the past ” will it do it again ? …doubtful . It isn’t money anymore in the governments eyes. It’s more of a “barbarous relic,” in their eyes , just ask ex. US Fed Chairman Ben Bernanke…he’ll tell ya !

          • If it brings you comfort than believe it. But this time it’s global you won’t be able to pack your gold and move somewhere and start a new life. There are several links on this site that might benefit you.

        • I have to add, maybe bau light will be forced upon us. We don’t have a choice. Cooperation in maintaining basic necessities. Hope is all we have.

          Or, survive until we reach 500 million.

        • I have been doing the ancestry thing for some years now and have delved into their quality of life. Back in the mid 19h century and whilst life was tough, people lived a quality of life that in many respects was better than today in some locations. They did it mostly without oil; kerosene was the refined oil used if any. People will survive; it will not be the first time they have had to. It comes with the territory in letting other people tell us how to live our lives.

          • Graham,

            Back in the mid 19th century people survived and prospered because they’d been taught those useful skills by generations of their ancestors.

            Not so today. There are so many essential skills that are unknown and unremembered by the current population of almost all 1st and 2nd world countries. I suspect after The Reset, the current 3rd worlders who are able to grow their own food, light a fire and build shelter, just might become a new 1st world country.

  12. so how will the release of 50 or 100 year bonds being considered right now affect gold and silver prices???I am guessing the price will go down to basement levels as everyone jumps on the stock market rocket ride

    • Gov debt can only be paid back in devalued currencies. So duration is already beyond a hundred years, they just give it another name. Perpetual bullshit they should call it. Or harakiri bonds. Next time things crash, it will be the last time. Making paper profits is a fools game now, indeed kevin. Let them play.

  13. I watch the charts on SLV myself, and if it can get above it’s 50 month MA, THEN I’ll be impressed.

  14. I think everyone has forgotten the greatest use of all. If you have a good supply of silver you will have a viable weapon to use against all the vampires and werewolves after the apocalypse silver bullets.
    Though in all seriousness if you invest in gold or silver before a good firearm and training you will just be enriching someone who did.
    Not saying me, but guns and good brothers to stand by are your best investment.

  15. fiatladysingspvc | February 27, 2017 at 4:03 pm |

    All the comments scare the hell outta me – modern medievalism !

Comments are closed.