The Unique Atomic Electron Structure of Monetary Metals

Copper Silver Gold
When the average person thinks of money these days, it usually brings to mind a piece of paper with some artwork and a portrait of an important historical figure on it, along with a number to indicate the value of the paper note. The higher the number on the paper note, the more value that note has. And in our modern day monetary paradigm, this is what money is. Historically though, money was actually a commodity. And the value of the monetary commodity was directly related to the amount of that commodity. For instance, if the commodity was gold, then ten ounces of gold had ten times more value than one ounce of gold. This is different from today where one small piece of paper might have ten or one hundred times the value of another small piece of paper of the same size and weight, depending on the numbers that are printed on the paper notes in question. Historically speaking, this situation isn’t normal. Throughout history, money has usually been a commodity, usually a metal, and paper notes were sometimes issued to indicate how much of a particular metal was owed to the note bearer. This changed for good in 1971 under the direction of President Richard Nixon, when he formally broke all ties between the U.S. dollar and gold. In my humble opinion, this situation will not and cannot last forever. The world will once again return to a monetary metal standard, either willingly or unwillingly. The laws of economics demand it, as do the laws of nature itself.

I would argue that the three main monetary commodities throughout history have been gold, silver, and copper. Take a look at all the coins that have been used in exchange for goods throughout history, and you will find that these three metals are, though not exclusively used, are very predominant. Jesus Christ himself implied such in Matthew 10:9 when he told his disciples: “Do not acquire gold, or silver, or copper for your money belts”(NASB). Now, there are three interesting facts concerning these three metals that I would like the reader to consider:

1. These three metals have been historically used as money and are specifically mentioned by Jesus Christ when referring to money in the New Testament.

2. The atoms of these three metals have a similar pattern within their electron structures.

3. No other elements in nature have this pattern within their atomic electron structures.

This is interesting to consider, especially to those who have studied the concept and theory of money itself. As you may know, an atom of any element consists of a nucleus, containing protons and neutrons, surrounded by energy levels, containing electrons. In a diagram of an atom, the first energy level completely surrounds the nucleus in a circular or spherical pattern, and each successive energy level completely surrounds the previous energy level. The interesting thing about copper, silver, and gold is that they are the only natural elements that have one electron in their outermost energy level and 18 electrons in their previous energy level. Copper has 18 electrons in its third energy level, silver has 18 in its fourth, and gold has 18 in its fifth. Copper has one electron in its fourth energy level, silver has one in its fifth, and gold has one in its sixth.

Is it just a random accident or coincidence that out of 94 natural elements, only these three have this pattern? Is this pattern nature’s stamp of monetary approval?

GDX-monthly

GDX did BT on the breakout on the monthly and just as important on the MA(50). This should provide support. Indicators on the monthly still looks healthy. Next direction should be (intermediate) UP.

gdx-m

GDX testing it’s Breakout

I have GDX on day 26 and deep in its timing band to find a Trading Cycle Low here. I can’t say how bullish the bounce will be but we are due for one. My first chart shows we are at the 62% Fib retrace out of the move up from the Late May IC Low and also testing my green line. My second, Weekly chart shows two long term down trend resistance lines. Will these now provide support?

Time and Price have arrived at a very interesting spot near the 30ema on the weekly where support should start to firm up if we are still in a Bull Market here.

Screenshot 2016-08-30 19.50.49 Screenshot 2016-08-30 19.43.23

Gold Elliott Wave Analysis

Since we are on the subject of long term BGMI:

These two charts support the thesis that the BGMI/Gold ratio chart is forecasting a great bull market.

Get your head around these numbers PS: they are conservative

sc-2128sc-2129

Some Ratio Charts

Here is about 75 years of the BGMI GOLD RATIO flipped both ways. This data is mostly current, data stops at 8/19. Gary, I hope this is what you were looking for. As I mentioned to you in your post these are in kind of rough draft/idea fleshing out mode. Was hoping to put out a more polished version but it doesn’t really matter, you just wanna see the baby.

BGMI GOLD RATIO

GOLD BGMI RATIO WEEKLY

GOLD BGMI MONTHLY LINE

GDX with Fresh Eyes

I stripped all the lines of the GDX Chart and had a look at it naked

3 scenarios appeared

1….A Fork Runs Through it !

gdx111

2….a Fork Ran Through it !

GDX11111

3…Inverse Head and Shoulders !

GDX1111

Which one do you like ?

scary looking pattern was a warning

not trying to be a wiseguy, but the spook gave fair warning

spooky

Inflation or Die – 11/26/2002 Retrospect

Stumbled on this article from Richard Russell – not much has changed since the beginning of the last 10 yr bull market in PM’s.

http://www.gold-eagle.com/article/richard-russell-markets-1

Of particular interest:

“But what about the Fed’s all-out campaign to fight deflation? After all, a campaign to fight deflation is really a campaign to reinflate. Then why isn’t it setting off a steadily higher price for the yellow metal?

Ah, a fascinating question. And I link that question together with the huge surge in gold short sales as seen in the Commitment of Traders. Could the Fed have anything to with the big build-up in gold shorts (and increase in 18,000 gold shorts over the latest two weeks)?

Actually, the week ended November 12 saw a monster increase of 18,000 gold shorts on the part of the Commercials in the latest week, November 19, the Commercial’s short position was reduced by just 4,000. Evidently, the Commercials don’t want gold to decline, they just don’t want it to advance.

In the meantime large speculators have increased their gold long position. I personally will be most interested to see in the weeks ahead whether gold can continue to be held back. Or, let me put it another way — will the forces of the primary bull market in gold prove to be so powerful that they will overwhelm the Commercials and their efforts to “manage” the price of gold.

It’s these “little things” that make the markets so fascinating, at least from my standpoint. Personally, I always put my money on the power of the primary trend. I believe that the primary trend of gold is bullish, and I believe that in due time the primary trend of gold will fully express itself. Furthermore, the longer the primary trend is suppressed, the more powerful the underlying build-up. I liken the primary trend that is held back to a coiled spring. The energy is simply compressed more and more. Finally, when the spring breaks loose the results are both powerful and startling. Which is what I expect for gold somewhere ahead — maybe a few months ahead, maybe a year or so ahead.

This is why I have labeled the present period the initial phase or “the accumulation phase” of the gold bull market. It’s the phase where knowledgeable investors are accumulating gold and gold shares and where the public and the majority of funds continue to ignore gold and gold shares.”

Time to Re-Assess

See article by Avi Gilburt inside this thread.

NUGT at support but HFT will take it out for a few points before resumption of the bull

http://stockcharts.com/h-sc/ui?s=NUGT&p=D&yr=0&mn=8&dy=0&id=p13025718405&a=463401641&listNum=15

GDXJ another 7% down…IMHO…so hold tight and sit right

look for this GDXJ bounce next week…another 7% down on gdxj if it tags the potential h&s line…then another massive rally into the right shoulder and then reassess…
http://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=0&mn=10&dy=0&id=p30750113056&a=463865160&listNum=15

HUI – Daily – The view from here

Looks like the PMs indexes have switched from panic buying to panic selling.
If we do indeed have an unbalanced double top the minimum price objective for Hui is 210, and very likely a tad lower to fill the gap from early June.
What to do now depends on your horizon, time wise. Long term investors might go fishing. Experienced day traders might have a field day. Me, I’m going to hide in the wine cellar. I’ll bring a cork screw. Good luck all…

sc

Rambus Chartology

GDX…The First Consolidation Zone

http://www.talkmarkets.com/content/us-markets/gdx-update-the-first-consolidation-pattern?post=104852&uid=23288

DUST 30

DUST 30

GDXJ shorter term

gdxj 8-30b

gdxj 8-30c

4 point continuation pattern in play? Or H&S top on the 2 hour? The H&S top price objective would be 38 or right on the weekly 38.2% fib retrace of the entire move seen on my weekly post earlier.

For Gary ’76-’80 Dow/Gold + Silver

This is a daily chart I constructed manually a year ago.

This is roughly how I foresee things developing over the next 7 yrs or so.

Full timeline – AU/AG/DJIA indexed at 100, DGR @ around 6.5 falling to just over 1.0

DGR 76-80

 

First 2.5 yrs – missing DGR (scaling), AU/AG/DJIA indexed at 100

DGR first 2.5 yrs

 

Last 2.5 yrs (continued from above)

DGR last 2.5 yrs

GDXJ

gdxj 8-30a

We have support at the uptrend channel since the beginning of the new bull. Also 10% lower from here is a lot of support near the 38.2% fib at a price of 38-40.

GLD Tonnage down almost 2 tons.

956.59

Gold symmetry possibility

These charts are inspired by Rambus and his methods – Neckline extensions and neckline symmetry rails.

Log weekly

Screen shot 2016-08-29 at 10.51.34 PM

 

 

 

 

Linear weekly symmetry setup using same rails.

Screen shot 2016-08-30 at 11.26.14 AM

 

 

 

 

Linear Monthly Bull/Bear

Screen shot 2016-08-30 at 12.17.02 PM

UUP target hit…ready to rollover me thinks to test the bottom rail

http://stockcharts.com/h-sc/ui?s=UUP&p=120&yr=0&mn=6&dy=0&id=p94166480267&a=458222864&listNum=15

XAU/GOLD Long term chart

I see PM stocks heading up much faster than others here and this is why. Nothing like this beatdown – in my lifetime anyway. Does anyone have a similar ratio for 1976 – 1980? Or better yet, 1968-1980???

The 7 or 8 month EMA works close to the 30 week SMA for monthlies. Thats what I use anyhow. Close enough for me.

XAU:GOLD

TLT ready to breakout…which way? any one…

http://stockcharts.com/h-sc/ui?s=TLT&p=120&yr=0&mn=8&dy=0&id=p17618459411&a=474646096&listNum=15

Could be a precursor to Miners right?

 

What If ? ( Updated)

Who is ready for this ?

1 and 1/2 years of range trading in PM Stocks

xau111

Seems Possible…but it sucks

On the Bright side…this move in 2016 looks fast and furious and much more like the 2009 Bottom than the 2001 Bottom
If so there will be NO long Consolidation.

Here’s hoping

UVXY

Complementary on my post below. As many see the top of SM … and offcourse indeed if that is true going for either a shallow or deep correction … then indeed PM might reverse up. We will be back for a intermediate inverse SM-PM. SM down … PM UP.

This brings me to UVXY. Still price is in the retangle. Nevertheless (again based on TIME) we could see a low for UVXY where I detected a triangle (see thick red lines) around 19.2ish hitting the APEX with possible target for 80-100.

The green line is a possibility which brings us to another APEX around 18.80-18.60-ish. This matches TIME better. See below UVXY-15.

uvxy-15

ADDED:

uvxy-15

bias-a great adversary

words of wisdom from steve saville

http://tsi-blog.com/blog/blog-default/

Sir Eagle

I just noticed your post below referring to my earlier chart. Yes so far it is holding. Nevertheless we need to keep a possible scenario as posted by SurfCity which would make GDX BT the weekly.

GDX Backtesting?

This would make GDX BT on 25.5…ish. Looking at GDX-120 … we would get a GAP-fill and at strong support … see chart.

gdx-120

Keeping a weekly BT in mind … would bring JNUG @ 18 -17 and possibly JNUG making a gapfill @ 16.35 (yellow).Several lines are pointing to 18-17 on JNUG which I call lines of confluence eq. influence. Also have a look at slo.sto @ jnug-60. It looks like it is going for completion of a right shoulder.  I will be buying JNUG by then. The two charts below are my sketches … take all the lines for granted.

jnug-60

This would bring us to DUST-120 going possible for 40 – 42 … see chart … see black line and alternative black dashed line.

dust-120

Several indicators (non-chart related) says we have a turn on or around 1st of September. At this moment I have two scenarios:

#1 (minimum GDX scenario) as presented by Tommy via DUST … https://goldtadise.com/?p=379806

#2 (maximum GDX scenario) as posted by you … https://goldtadise.com/?p=379636

Interesting note is that GDX-target @ 35-36 is also a line cross of the two forks at the GDX-120 … as well this fits in trading TIME. Test of the upper line of the blue fork and back testing the black-fork. Although I have to admit that such a target is high, it also means that we could see a rocket-September-rally. Either #1 or #2 scenario depends on TIME … so as time goes and DUST remains at Tommy 25-ish then a rocket-rally for GDX needs to be excluded. If DUST goes below this 25-ish expect much lower for DUST. We will see.

So a breach on the GDX-120 going for 25.5ish does not have to be bearish … I see it as low-risk entry for going long. A BT on the GDX-weekly would probably been seen as ultra bearish (I see it at the opposite) … bringing traders adding more on short and exciting their longs and then we strongly reverse UP. Exactly the way Mr. Market likes it. Again we will see … but this is my short-term tradeplan.

The GDX 25.5ish is a possible (low) outcome … if price remains above the middle line of the fork on my GDX-120 in the coming days then your line in the sand on NUGT will be the (intermediate) lowest.

Wowser

I am a big fan of Williams A/D study. Here is a chart of the 10 minute GDX.  I have never seen such a positive divergence on any other chart I have looked at.  Bressert turned negative in the last 20 minutes of the day (see the ribbon on top).  But I am impressed with the divergent action in the Williams study.

Image 1

 

SLV confluence of forks is targetting the $14 region…FYI

http://stockcharts.com/h-sc/ui?s=SLV&p=W&yr=3&mn=1&dy=0&id=p41139414386&a=463401653&listNum=15

Take a look and comment away….

NUGT 15…

Remains above support…Still need a back test of the diagonal trend line? I do not know at this juncture…
nugt
This is Nightingales’s chart…support still stands. I like this chart…
Note the perfect back test of the middle fork line…
Great chart Nightingale…
gdx