With the price of gold surging nearly $10 and the price of silver nearing the $15 level, today James Turk told King World News that this major catalyst will create a massive upside surge in gold and silver.
Metals Heading Higher
October 15 (King World News) – James Turk: “The evidence is mounting, Eric, that the precious metals have turned the corner and are heading higher…
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James Turk continues: “Today in particular saw something very important – upside follow through. Gold rose 1.4% last week, and instead of falling back, gold had a good move up again today.
Upside follow through like this has been lacking for months. Its absence has discouraged gold bulls, which in turn resulted in selling pressure. As a consequence, and as we can see in the following chart, gold has been in a downtrend since early this year when it was unable to break above the $1,350 area.
Gold Has Broken Solidly Out Of Downtrend Channel
What we are seeing now is buying pressure. Support under $1,200 looks solid. Dips are well bid, and that result is not surprising.
Money Will Flow Into Gold
There is so much uncertainty prevailing these days, it is natural to move into physical gold. It’s safe-haven properties have been proven over thousands of years. The attraction of owning a safe asset is appealing as the financial risks grow. People are waking up to the fact that another bust in the credit cycle is long overdue. What’s more, the Federal Reserve is bringing that day closer by raising interest rates, which for now has kept the US dollar steady.
An Important Bull Market Indicator
It worth noting that gold has been rising even though the US Dollar Index has remained above 95. That is comfortably above its critical support around the 94-to-93.50 area. So gold is moving higher against all currencies, which is an important bull market indicator. And silver is trading okay as well. Silver has not been strong enough to say that it is leading the precious metals higher, which is what I would like to see. But it is keeping up with gold. In fact, the gold/silver ratio has declined slightly from its high last month.
This Catalyst Will Create A Massive Upside Surge In Gold & Silver
Watch the 81 area. If the gold/silver ratio breaks below that level, then there is a good chance that silver will start leading. When that happens, the precious metals often start accelerating to the upside. I am expecting that the next few months will be good ones for the precious metals, Eric. The odds of that outcome increase if silver can hurdle above resistance at $15.
Also of importance…
10-20 Times Current Share Price
Executive Chairman of Auryn Resources, Ivan Bebek, told King World News: “We feel we are really on to a big system in Peru. We sampled up to 31.6 g/t gold and 5.25% copper in the Ferrobamba limestone, which illustrates the strength of the metal content. The targets continue to give us evidence that supports our theory that we are on to a major system.
Eric, this is not exciting because it will double or triple our share price if we are right. This is exciting because if this project delivers the way we think it will, it could give us 10-20 times upside what the current share price of Auryn is trading for. And that’s what we are really after with this company.
And remember, Eric, Auryn is in the unique position with 7 projects to capitalize on various aspects of optionality that a large portfolio has. It significantly reduces the risk of exploration and provides potential self financing opportunities through asset sales to avoid future dilution.”
I have increased my stake in Auryn Resources to 525,000 shares because I believe there are a number of catalysts that could send the share price many multiples higher than where it is trading today — symbol AUG in Canada & US.
***KWN has now released the powerful audio interview with John Mauldin discussing the gold market, this week’s stock market plunge, how QT will impact major markets, what will trigger the Fed to initiate the next round of QE and much more and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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