Turk - A Remarkable & Historic Breakout In Gold & Silver

kingworldnews.com

Today James Turk told King World News, “This breakout (in gold and silver) is very important historically because it is not only ushering in the next great move in the metals, but it also signals the beginning of the next leg of the destruction of fiat money.” Turk also said, “Given that silver is still in stage 1, the media attention won't begin until silver hits a new record high over $50 per ounce, and I think this is coming in just a few months.”

Here is what Turk had to say: “Even though the US is closed for the Labor Day holiday market, Eric, gold and silver are on fire over here in Europe. Silver has hurdled $32 while gold looks ready to take on resistance at $1700, which is a key level the bears have been defending since last March.”

James Turk continues:

“This breakout in gold and silver over the last two weeks is exactly what we have been expecting and waiting for. It is very bullish that we are seeing good follow-up buying from last week's strength. Some of that mountain of money sitting on the sidelines is coming into the market, but so far it is only a trickle.

That will probably soon change to a torrent as people come back from their summer holidays and realize that the interrelated sovereign debt and bank insolvency crises have not gone away....

“So things are falling into place for new record highs in both gold and silver within the next few months. I expect that gold will make a new record high before the end of the year, and silver's new high will follow soon thereafter.

I updated the long-term weekly silver chart that I have been sharing with KWN readers to illustrate silver's major uptrend. We can see that the huge flag pattern has been broken to the upside, which of course is bullish. This breakout is very important historically because it is not only ushering in the next great move in the metals, but it also signals the beginning of the next leg of the destruction of fiat money.

But this pattern was only of secondary importance to the resistance level I began discussing last October. That level was $36, but given the slight penetration and subsequent reversal back below that level in February, I would now say that the key resistance level for silver is the $36-to-$37 area.

But you will recall my original comment, Eric, which still applies. When that resistance level in silver is finally hurdled, I expect to see $68-$70 in 2-to-3 months.

However, the more important point is a move like that will mean silver is finally entering stage 2 of its bull market. That is when it will really get exciting, Eric. The first stage of a bull market, which is the one we are now in for silver, is always the boring part.

Gold went into stage 2 when it cleared $1,000 a few years ago. Look at the price appreciation it has achieved since that event. Another characteristic prevailing in stage 2 is increased media attention, and that surely applies to gold. It also explains why so few people are paying attention to silver.

Given that silver is still in stage 1, the media attention won't begin until silver hits a new record high over $50 per ounce, and I think this is coming in just a few months.”

 When asked about the mining shares, Turk responded: “In the KWN interview we did a couple of weeks ago, I said that the XAU needs to clear 170 while the HUI has to move above 465. Those levels are now just a chip-shot away. When these resistance levels are finally hurdled, it will be further confirmation that everything is in gear for a major move in gold, silver and the mining shares.

We have been going through a long correction, Eric. But there is now enough evidence emerging to suggest that this correction has ended. So we should be getting ready for some spectacular rocket shots in gold, and particularly silver, over the next several months, taking both precious metals to new record highs.”