Today James Turk spoke with King World News about Western central bank intervention in the gold and silver markets and what to expect next.
The War In Gold & Silver
January 18 (King World News) – James Turk: “I’ve been hoping for the precious metals to have a really strong start to the new year, Eric. Doing so would enable them to build on the huge base they established last year, and also continue their particularly strong performance in December. But the last couple of weeks have been a struggle…
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Western Central Banks At It Again
James Turk continues: “During this period gold has been turned back from $1,300 half a dozen times. Silver also tried to break through resistance at $15.90, but was also beaten back. Clearly the Western central planners — through central banks and their bullion bank agents — have been out in full force. We can see their footprints by the huge build-up in Comex open interest, selling into the buying of the spec longs. It’s a pattern we have seen time and again. Market manipulation is always a real test for the bulls. In fact, with their market manipulation, the central planners are trying to push gold and silver lower to break support in order to get a short-term selling panic going into month-end option expiry.
Today was the first step in achieving their goal. After being stuck in a trading range for two weeks, silver broke out to the downside. The breakdown from this trading range can be clearly seen on this silver chart.
Silver Broke Support Today
Nevertheless, the two arrows on this chart are giving us an important message. The first arrow indicates when silver broke above its downtrend line going back to its June high. We discussed this breakout, Eric, back on December 6th, the day it happened.
A World Fraying At The Edges
The second arrow marks silver’s breakout from its base. Breakouts like these two occur at the start of bull markets. So the logical question to ask is whether gold and silver are at the beginning of a major uptrend? I think the answer is, Yes, and the reasons are clear. We know that gold and silver are undervalued. And we also know that the outlook is likely to favor the precious metals in 2019.
Also, stock markets around the world are fraying at the edges, raising investor nerves. This increasing nervousness results in money moving to safe havens, and gold is the safest of them all because it is a liquid money without counterparty risk. Perhaps most importantly, we know that banks are under increasing pressure because of bad loans and their massive derivative books. Crude oil cannot collapse from $75 to $50 in just a few months without having a knock-on effect on bank loan books. So we need to give gold and silver every benefit of the doubt.
The Bottom Line
In the short-term as we head to month-end option expiry, gold and silver might retrace their steps and test support, which I expect to hold. But watch for their uptrends to resume, which could happen anytime. The bottom line is that despite the constant interference and manipulation of markets by the central planners, 2019 is shaping up to be a good one for the precious metals, and for that matter the gold and silver mining companies too.” Within hours KWN will be releasing a remarkable audio interview with Egon von Greyerz and you can listen to it as soon as it is released by CLICKING HERE.
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