Today
James Turk told King World News, “This breakout (in gold and silver) is
very important historically because it is not only ushering in the next
great move in the metals, but it also signals the beginning of the next
leg of the destruction of fiat money.” Turk also said, “Given
that silver is still in stage 1, the media attention won't begin until
silver hits a new record high over $50 per ounce, and I think this is
coming in just a few months.”
Here is what Turk had to say: “Even
though the US is closed for the Labor Day holiday market, Eric, gold
and silver are on fire over here in Europe. Silver has hurdled $32
while gold looks ready to take on resistance at $1700, which is a key
level the bears have been defending since last March.”
“This breakout in gold and silver over the
last two weeks is exactly what we have been expecting and waiting for.
It is very bullish that we are seeing good follow-up buying from last
week's strength. Some of that mountain of money sitting on the sidelines is coming into the market, but so far it is only a trickle.
That will probably soon
change to a torrent as people come back from their summer holidays and
realize that the interrelated sovereign debt and bank insolvency crises have not gone away....
“So things are falling into place for new
record highs in both gold and silver within the next few months. I
expect that gold will make a new record high before the end of the year,
and silver's new high will follow soon thereafter.
I updated the long-term
weekly silver chart that I have been sharing with KWN readers to
illustrate silver's major uptrend (see chart below).
We can see that the huge
flag pattern has been broken to the upside, which of course is bullish.
This breakout is very important historically because it is not only
ushering in the next great move in the metals, but it also signals the
beginning of the next leg of the destruction of fiat money.
But this pattern was only
of secondary importance to the resistance level I began discussing last
October. That level was $36, but given the slight penetration and
subsequent reversal back below that level in February, I would now say
that the key resistance level for silver is the $36-to-$37 area.
But you will recall my
original comment, Eric, which still applies. When that resistance level
in silver is finally hurdled, I expect to see $68-$70 in 2-to-3 months.
However, the more important
point is a move like that will mean silver is finally entering stage 2
of its bull market. That is when it will really get exciting, Eric.
The first stage of a bull market, which is the one we are now in for
silver, is always the boring part.
Gold went into stage 2 when
it cleared $1,000 a few years ago. Look at the price appreciation it
has achieved since that event. Another characteristic prevailing in
stage 2 is increased media attention, and that surely applies to gold.
It also explains why so few people are paying attention to silver.
Given that silver is still
in stage 1, the media attention won't begin until silver hits a new
record high over $50 per ounce, and I think this is coming in just a few
months.”
When asked about the mining shares, Turk responded: “In the KWN interview
we did a couple of weeks ago, I said that the XAU needs to clear 170
while the HUI has to move above 465. Those levels are now just a
chip-shot away. When these resistance levels are finally hurdled, it
will be further confirmation that everything is in gear for a major move
in gold, silver and the mining shares.
We have been going through a
long correction, Eric. But there is now enough evidence emerging to
suggest that this correction has ended. So we should be getting ready
for some spectacular rocket shots in gold, and particularly silver, over
the next several months, taking both precious metals to new record
highs.”
No comments:
Post a Comment