The One Gold Chart Pattern That Matters
In this video, Lynette exposes the manipulations of Wall Street’s spot market and highlights the importance of understanding the failing currency and making choices to protect your wealth.
CHAPTERS:
0:00 Truth and Illusion
3:08 Spot Gold
11:36 GLD
17:11 PCGS3000
18:29 Spot Silver
22:38 The Thrivers Community
SLIDES FROM VIDEO:
TRANSCRIPT FROM VIDEO:
So how do you know if what people are saying is true, not true? Well, some things can be really hidden from us, but the technicals don’t lie. Now there are ways that you can manipulate the technicals, but then there’s the true supply and demand market. And both of those, frankly, especially when it comes to gold and silver, telling a completely different story, you wanna know what the real story is? I’ll show you where to look and how to know is this true or is this an illusion coming up?
I’m Lynette Zang, Chief Market Analyst here at ITM Trading a full service physical, gold and silver dealer specializing in custom strategies, which we should all have them under any circumstances. But never has it been more important that you know how you are going to sustain your standard of living, let alone put yourself in a position to actually come out the other side of this transition in a much better financial position than you were when you entered it. And there’s a way, and I know a lot of people have bought gold and then they’ve been and silver and, and have been so disappointed because what they look at is Wall Street’s spot market, which was created to manage your perception of the markets. And particularly when it comes to spot gold. Because spot gold or gold rather is the primary currency metal. Silver is the secondary currency metal, a rising spot price is an indication of a failing currency. And once you become crystal clear that the currency is failing, guess what? You make those choices to protect your wealth. Fiat money assets won’t do it because you can only convert them back into fiat money. And if the fiat money has no value to it and doesn’t have very much at this point, if it has no value, well, last time I checked a trillion times zero was still zero. So it has been requested that I do a technical little technical lesson. And so that’s what we’re gonna do today because you may or may not know that in my past I was a banker and I was also a stockbroker. So I’m very familiar with those worlds, which is why I can translate this financial noise for you. So let me translate the financial noise for you.
So we’re gonna be looking at some key patterns here, cup formations, resistance support, triple tops.
And we’re going to to look at ’em in terms of spot gold and spot silver, which even though suppressed are still in a very quiet bull market, they don’t want your attention on these. And we’re gonna start with spot gold. Okay? Now I’ve talked, this graph goes back to like 2003 and you can see where we had a run up and then we hit a level here. And once you hit a level and it pulls back, you have resistance. And that means that you have to break through that next level, which typically once it does, that becomes support, right? So that means that if the price hits that it’s likely to bounce up. So on resistance, when it hits that number, it’s more likely to bounce down to, to move down the price action. And when it hits support, it’s more likely to go up. Okay? And this is just the spot market. So you can see we had a nice little run up, then we hit a resistance level again, it went down, it hit that support and then we break broke out. We made the highs in 2013 on the spot market, which is right here. And you can see that we broke that. But once before we did that, you see that cup, right? A cup is not gonna be smooth, but it kind of looks like the bottom of a cup where you go from higher levels to lower levels and then back up again. This is key because what a cup formation is, this is probably the most important pattern that I’m showing you because it is an accumulation pattern. And what it tells you is that smart money, big money, has recognized an undervalued circumstance and they are building a position quietly because they don’t want you to know about it, but they’re building a position. When that cup comes to conclusion. So just to, and we get a breakout, then typically we’re off to the races. Of course we are at the end of this currencies life cycle. So let me come back to that in a minute because I wanna stay on the cup a little bit more. This is the pattern that we’re going to be looking at to know when it’s time to go back into real estate income producing assets. Let’s just, I don’t care what it is, but income producing assets, I’m gonna be looking for an accumulation pattern that’s gonna tell me when I am likely near a bottom. I mean, goodness gracious, if you ever get in at the very bottom or out at the very top, that’s just luck. That’s all that that is. All I’m really looking to do is get in somewhere near a bottom and out somewhere near a top, okay?
But this accumulation pattern, so when it’s time for us to shift from our gold, okay, it is an into income producing assets like commercial real estate or any real estate or rights, water rights, air rights, etcetera. When it’s time to shift, this is the pattern that we’re going to be looking for. It’s not gonna be smooth, we just kind of smooth it out with the computer. But we want that cup pattern because it tells us the smart money’s been accumulating. And by the way, who’s the smart money in this case? How about the central banks, right? They’ve been accumulating a ton of gold. Okay? So we had the breakout and then because a rising gold price is an indication of a failing currency, they have to create a whole lot more gold that doesn’t exist in order to try and control the price. Why isn’t it down at 600? Right? That shows you how much buying pressure there is. I will also point out to you the volume on the exchange and how that volume has grown over time, right? But they don’t want you to think of gold as a safe haven. They are, they’re accumulating it. They just don’t want you to because they like your wealth in a system that’s easy for them to steal and you don’t even realize that they’re stealing it, right? Your wealth and your work, you know, look on that purchasing power chart and it has gone down since the day you were born. You can buy less and less with the same amount of money, not true on gold or silver. That’s protected your purchasing power and it will protect your purchasing power into the future. Okay? So here we went up and it should have gone up more, but you know, they don’t want you to see that. So we’ve got a top here, it’s trying to break out. What I find really interesting about this pattern is that this line should have been support and it wasn’t quite, but you still didn’t get as big a correction as you should have considering this line did not stop a further decline below it. But this top line, this resistance line here, now you got a triple top 1, 2, 3. And what you also have is how do you know that this is in a bull market or a positive market? It’s pretty simple. You have a series of higher and higher lows because as long as you get higher and higher lows, you will get higher highs. It’s the same thing with the, with the purchasing power. How do you know it’s in a negative trend? Because what you have are lower and lower highs and if you keep getting lower and lower highs, guess what? You’re gonna end up with lower lows. So they just cover up the negative trend in the dollar, in the dollar’s purchasing power by pushing the stock market higher. And you go, oh my gosh, the stock market’s going up. I don’t wanna miss out. Fear of missing out F.O.M.O. I don’t wanna miss out. But the reality is it’s a misdirection look over here because what we’re really doing is over here and we don’t want you to see this, okay? But again, a cup formation is a sign of smart money accumulation. So whenever you’re going to make a choice, look at, look for that pattern, right? Look for that pattern. They, you have to step back and look at a long term. That’s why I’m not, and honestly anything I’m telling you hear also works in a trading environment. You just shorten everything up but you can see the same kind of patterns. I’m just not a trader. That is not my thing. It makes me too stressed and nervous. And again though, just keep these two factors in mind. Higher and higher lows indicate a positive trend cause if you keep getting higher lows guarantee you, and I can’t give you a lot of guarantees, but this one I can give you, if you consistently get higher and higher lows, you will get higher highs. So that indicates a positive trend. And again, that cup formation is an accumulation pattern of smart money. And you guys know, I do believe that you should always do for yourself what the smartest guys in the room are doing for themselves. And frankly who knows more about what they’re doing to the monetary system than the central banks And what are they doing? They are buying more gold than they have since the last transition monetary system transition we went to. That should tell you a lot. And also they’ve gotta suppress it.
But I had last I had a couple weeks ago, a question about GLD and GLD is a gold ETF. So it’s sold to you as if, well if you own G L D, you own gold. That’s not really true. What you own are simply shares in a trust. You can never convert this into the underlying gold cause you’re not an administrator. Now JP Morgan as an administrator, they can convert it into the physical metal but you cannot, and it’s design was about mirroring the spot price of gold, not the real price of gold, just the spot price. Plus they sell off holdings on a daily basis to pay their fees. So you can see obviously I’ve got a red line and I’ve got a blue line and the red line is spot gold and the blue line is the spider gold etf, GLD. And you can see when they first came out it just looks like one line, right? So they held the fees off, any fees off for a while to get it going. Because they don’t really want you to look at what I’m showing you, which is just a relative performance chart from stock charts.com. Anybody can do it. The link is below and when you pull back and you look at it in a long-term basis, you start to see the separation between that red and blue line and that’s indicating the sales of the goal to pay the fees. So owning GLD is not the same as owning physical metal. Now it comes out with the nav, which is the net asset value of the trust and that is simply an aggregate value of the trust’s assets. So all the gold that they’re holding less is estimated accrued but unpaid liability, which are all of the expenses and goodness gracious, do you see how that the difference between the spot and the nav net asset value of the trust has shifted over time? So GLD is actually a diminishing asset. Now look, if you are just wanting to speculate on the spot price of gold going up, there’s probably cheaper ways even than to do it GLD. But you should never do it with a physical metal. That just doesn’t make any sense. So if you wanted to use GLD to do that, mm, okay, I mean it’s not a choice that I have made personally, but okay. And you can see it reflects the triple top up there. And also I’ll say the number of ounces of gold required to create a basket or to be delivered upon the redemption of a basket gradually decreases over time due to the accrual of the trust expenses and the sale of the trust’s gold to pay the trust expenses, baskets may be created or redeemed by authorized participants. You and I are not authorized participants. So what you’re really looking at here is a diminishing asset. Will this protect you? No it will not. It is a product that is not designed for you to benefit. It’s designed for you not to buy this, but they’d rather have you in an intangible asset. No, it won’t protect you because at the end of the day, all you can convert it back into is this garbage. It’s all you can create, you can convert it back into and when there’s zero purchasing power in there, what good does it do you? Absolutely none unless you need wallpaper for your house maybe then. Redemption orders are subject to postponement, suspension or rejection by the trustee. And we’ve certainly seen a lot of that in the REIT area. Real estate investment trusts, right? Under the trust indenture the sponsor and the trustee disclaim any liability for any loss or damage that may result from any such suspension or postponement. If you own GLD, did you know that? Did you take the time to read the prospectus to see what you were really actually doing? My bet is no. So you are paying them and you have all the risk and the liability sounds like a fair deal to me. And in the meantime, they’re actually selling off holdings of their gold to pay their fees. What do you think? Does that sound fair? So you bought a diminishing asset. No, it won’t help you in this transition. No, it won’t help you. It is not designed to run with the true value of gold. It is designed to run with the spot market. So that’s what it’s gonna reflect. No, it won’t help you, but when you get into this arena, which is physical only form, it’s a different story.
This graph goes back to 1970, it’s the PCGS 3000. And so you can see here was the peak back in 89, but look at this cup formation that’s happening, right? And the recent breakout, again, physical only market. So it still has a ways to go. But let me show you that a little bit more closely. So isn’t the physical market telling a very different story than the spot market? Where you keep going up and bumping your head? Because again, a rising gold price is an indication of a failing currency. If the price goes up, even though it isn’t a long term bull market, if the price goes up, more eyes go on it. They don’t want you intangibles, they don’t want you out of the system. They want you in the system where it’s just so much easier to take your wealth and you’re not even realizing that. Smart money accumulation. Yep. Well they didn’t do a very good job on animating this. So bear with me.
Let’s look at spot silver positive trend. Higher and higher lows. There’s the resistance. Here’s your cup formation. It just has not come to conclusion yet. It needs to hit this level up here where this line is. But as of 6-26-23 spot stood at $22.83 an ounce. So what if you wanna buy one of these? If you are just counting on Wall Street to tell you the truth, you’re not gonna get it in the paper market because again, they can create as much silver that does not nor ever will exist as they want and suppress the price. But in the physical only market where you actually are spending money and buying it, you’re paying a huge premium to that spot price and it and it’s, it is purely based on supply and demand. It it really is just that simple. But what you also can see is that spot silver continues to build it’s cup formation. It has not yet come to conclusion, but it will. I can’t tell you exactly when, but I can absolutely a hundred percent tell you it will. And the other thing that I will tell you is that it is in a long-term positive trend because again, you have a consistent series of higher and higher lows. And again, physical silver to the spot commands a huge premium. And the mint, I’m telling you what they’re selling at the Mint is frankly no different than what we’re selling for $37.79 at at this moment that I’m filming this. That could be different when by the time you see it, and certainly by the time you call it in, and y’all know that I like silver for my barterable position. And this is the silver ETF, which just reflects SLV, which just reflects the spot price, right? The demand for silver may temporarily exceed available supply that is acceptable for delivery to the trust, which may adversely affect an investment in the shares, you think because now they don’t have to have the silver underlying it. A sudden increase in demand for shares that temporarily exceeds supply may result in price volatility of the shares. Oh, maybe like this area over here.
So the reality is so simple, if you don’t hold it, you don’t own it. And your perception means squat in a court of law. Because what we a hundred percent know, what we know absolutely is that wealth shields are made of physical gold and physical silver in your possession. This all counterparty risk, this no counterparty risk. We are going into a battle royale. We are transitioning from one system into another system. You go in with something like this, an SLV or any kind of intangible silver or intangible gold that goes to zero as the currency hyper inflates, it goes to zero, it does nothing for you. Can you see that in the physical world that’s what protects you. That’s why wealth shields are made of this, not this.
So if you haven’t yet, you wanna make sure to watch the Coffee with Lynette episode with Andrew Bustamante from Everyday Spy. And by the way, if you would like to purchase your very own ITM money gun, we have an Etsy length blow so that you can play central banker too and we can play it together, especially if you check out Thrivers, which is a community that we’re developing with for everyone around the world. But there are groups that are farming all around, well the world, but mostly the us. So come, you’re not alone. You’re not alone. And if you haven’t done it yet, click that Calendly link below, set up your own gold and silver strategy so that you can come out the other side of this mess in a much better position than you’re entering it. And make sure you subscribe, leave us a comment, give us a thumbs up and share, share, share. And until next we meet, get your wealth shield in place and be safe out there. Bye-Bye.
SOURCES:
https://stockcharts.com/h-sc/ui
https://stockcharts.com/freecharts/perf.php?$GOLD,GLD
https://stockcharts.com/freecharts/perf.php?$SILVER,SLV
