...[ As an introduction as to what the charts have to say about gold and silver at this point in time let me remind you that] the world debt situation worsens.  It is, and it always has been, only a matter of time before this IMF house of fiat debt collapses, and collapse it will, as certain as the sun rises in the east and sets in the west.  The time draws nearer and nearer to the inevitable.  No one knows exactly how it will unfold and when, but the "when" factor is already underway, as a process...[Now is the time to] get thee gold, and get thee silver, and get out of debt or suffer the intended consequences.

By Michael Noonan (EdgeTraderPlus.com)

The fiat debt collapse is an evolving event, an inevitable event.  It will not be a smooth transition. [After all,] where in the world today are events unfolding in a [calm] and smooth manner?  ...Will it get ugly? [Well, all one can do is] hope for the best and prepare for the worst, for the latter is more likely. Power is knowledge but it is useless unless it is put to purposeful use.

Will the ultimate price rise [in gold] be as shocking as many suggest?  Yes, if you believe the debt situation is as shocking as it is.  Gold and silver are finite.  Fiat is infinite.  When the infinite begins to chase the finite in more earnest, it is anyone’s guess as to how the valuing of gold and silver will unfold.  Those who have placed their trust in the natural order of supply and demand will amply be rewarded once the unnatural forces of fiat evil lose their incestuous grip of faux, yet real, power.

[So what do the charts on gold and silver have to say at this point in time? Take a look below.]

Silver: Weekly & Daily Charts

We start with silver because we continue to believe that silver will outperform gold during the next move higher in the PMs, over time.  The base shown on the chart is substantial for supporting a considerable rise in price, and we project it to the 36.50 level.  This presumes that a normal bull market unfolds.  If economic collapse occurs, then hang on for price rises that few have ever experienced in this arena.

Using standard measures, we see silver unfolding in a positive manner.  For as long as the BIS/IMF maintain a degree of supremacy, expect to see longer counter reactions to rallies.  What becomes important is to determine the character of any reaction.  The present one, as an example, is developing in a way that should lead to higher prices. Irrespective of any presumed market conditions that could take gold and silver to much higher levels, there still has to be confirmation that a correction has ended before the next leg higher can resume.

Gold: Weekly & Daily Charts

The chart comments are apt.  What we can add is how price is developing within the upward slanting channel.  The upper line is supply, or resistance, and the lower line is demand, or support.  Presently, price is working in the middle, as opposed to staying closer to the upper channel line which would indicate a stronger market.  That price is still above the lower line tells us there is still a function of demand greater than supply.

You can see the general similarities with the daily gold chart in that the reaction since the July swing high has been more labored to the downside, and support is holding well.  If price does not rally away from perceived support, next week, it indicates acceptance at these lower levels, and price will go lower to uncover greater demand to eventually move gold higher.

Conclusion

Keep buying and holding physical gold and silver.  We continue to favor silver more than gold, at this point.  While both will move higher, silver will outperform gold to the upside yielding a better return.