My Blog
James Turk continues:
“With its deteriorating economy, it is highly unlikely that the bailout money will accomplish anything worthwhile for Greece. The money will simply pass through Greek bank accounts and immediately out again to bail out the owners of Greek bonds. So, in reality, this really has nothing to do with Greece, it is simply designed to pull banks back from the brink.”
When asked about gold, Turk replied, “It’s looking very good, Eric. We’ve been in a consolidation with a trading range extending from about $1,710 to $1,750. You’ve really got to get excited about what is happening here. Think about it a minute, gold climbed from $1,525 to $1,755 or $230 and instead of retracing, it’s just moving sideways in a very powerful consolidation.
Gold is only $30 or so from breaking out of this trading range, which I expect to happen within the next week or two....
Continue reading the James Turk interview below...
Advertisement
To hear which company $10 billion Sprott Asset Management and Sun Valley Gold
are the largest shareholders of and why click on the logo:
When asked about silver specifically, Turk responded, “I keep going back to that weekly silver chart that we’ve been talking about now for a couple of months. With each passing day, the base in silver continues to build. We should view this base as a launch pad from which silver will rocket higher. It’s taking a little patience, but once that $35 level is broken, it’s blastoff for silver.”
Turk also added: “I get a lot of questions, Eric, about what it would take to send the precious metals lower from these levels. As I see it, the only reason gold and silver would fall significantly from here is if billions and billions of dollars were destroyed in a deflationary collapse.
That event is highly unlikely given the Federal Reserve’s negative interest rate policy and commitment to do whatever it takes to prevent deflation, including dropping $100 bills from helicopters. Over the past year, M1 rose 18.5% and M2 was up 9.8%. These numbers suggest that the probability of dollars being destroyed in a deflation and the gold price falling, as a consequence, are extremely low.
Instead of thinking about falling precious metals prices, investors should instead be prepared for panic buying when gold breaks above $1,750 and silver takes out $35.”
It is interesting to note that gold and oil have been tracking each other fairly closely to the upside. The longer-term median point on the gold/oil ratio is roughly 15.5. The ratio today stands at approximately 16.8. If oil continues its bullish pattern and eventually retests the $150 high after breaking above the $115 resistance, that would suggest a price of over $2,500 for gold.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
Turk - Gold Panic Buying & Pulling Banks Back from the Brink
With gold at $1,725 and silver near $34, today King World News interviewed James Turk out of Spain. Turk told King World News that even though the markets are quiet, the reality is we are getting very close to a “buying panic.” Turk also stated that deflation is not in the cards. Here is what Turk had to say about the situation: “We’re seeing a lot of smoke and mirrors here in Europe, Eric. The Greek Parliament approved the latest bailout program for that beleaguered country. They claim it will pull Greece back from the brink. The reality, however, is completely different. Greece is being subjected to onerous and heavy handed financial pressures from its creditors.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
February 13, 2012
