My Blog
James Turk - Big Money Continues Buying Dips
With gold and silver holding firm today, I continue with another in a series of discussions with James Turk from his new home in Spain. When asked about the dip today Turk said, “There’s no doubt about it that the buying power that we have seen the past couple of months is still there waiting to buy the dips. This shows there is still a lot of money waiting on the sidelines to enter the market.”
September 23, 2010
Turk continues:
“If the silver market can take out $21.34 on volume that will pull the money off the sidelines and ignite the explosion that we’ve been talking about. Every day we spend above $21 is positive. You are building a platform and it’s this kind of thing that is going to take silver a lot higher.”
“This is one of the times when silver is leading, so a higher silver price means good things for gold as well. Another positive for gold is the fact that there really is no overhead resistance, and this means it’s unchartered territory and smooth sailing to the upside.”
When asked about the gold/silver ratio Turk responded, “One interesting thing to look at longer-term Eric with regards to the gold silver ratio, is that a big breakout will occur when the ratio breaks 40 to 1. This goes back to 1988 when Buffett acquired his silver.”
“The ratio has been in this huge trading range from the mid 40’s to the low 80’s for twelve years. When we take out that level, investors should expect a move to at least 20 to 1 on the ratio. But again, that will be much later on in this bull market.”
The big money continues to enter these markets, it is no longer a time for amateurs. As we have said all along, continue to accumulate, but do not try to time these markets.
Eric King
