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James Turk continues:
“For anyone who has been accumulating precious metals over the past twelve years, you have all seen this time and again. But there is an important point to take from this observation, Eric. All of the ham-fisted interventions in the past were eventually overcome, and much higher prices were achieved. I don’t expect this time to be any different from any number of times we have seen this in the past.
The reason, of course, is that the underlying fundamentals for gold and silver remain very bullish. I know that corrections, like the one we are experiencing, can be disconcerting to investors who have made recent purchases....
Continue reading the James Turk interview below...
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“But as we have said so many times in the past, the hardest thing to do is to sit tight during these downdrafts.
Silver is back below $35 resistance. The bottom line is silver has to power solidly back above $35 and finally break through to the upside. Once this occurs, we go back to my forecast that silver will reach $68 to $70 within two to three months of that breakout.
There is no reason to be bearish about silver’s prospects, although right now it may take a few days or even a couple of weeks to mount a charge through $35.”
When asked about gold, Turk responded, “Support at the $1,700 level looks pretty solid based on the demand for physical metal around that level. We might have a little bit more testing of support at the $1,688 low we reached last week. That type of action would be quite normal. My expectation is if we get near that low once again, we can expect a quick reversal back to higher prices.”
Turk also added: “The series of interviews you have done over the past week have been wonderful. They have kept KWN readers and listeners informed during a tumultuous week. Readers have to remember to keep their eye on the ball. Gold and silver are going higher for the same reasons we have discussed over time, namely currencies are being debased.
In that kind of environment, physical gold and silver are absolutely the best safe havens. Remember, gold has a 5,000 year history of being money and this present experimental system of currencies backed by nothing except government promises has only been around 40 years. It will go the same way as every other attempt by central planners to use paper as money. In the past the paper currency was invariably destroyed, but gold has always survived the test of time.”
© 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 - Central Banks Intervened in Gold Out of Desperation
With gold near $1,700 and silver below $34.00, today King World News interviewed James Turk out of Spain. Turk told King World News what level on gold will hold, in the aftermath of the central bank intervention. Here is what Turk had to say about the situation: “We’ve seen this so many times over the past twelve years, Eric. I’m taking last week’s smash in the metals in stride. The fact that central banks chose to intervene when silver had broken out on massive volume and gold was on the verge of a breakout is not surprising. The situation was getting desperate and they had to intervene at that point or things were going to get out of control on the upside.”
© 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.
March 5, 2012
