Today James Turk told King World News that this move in gold and silver may be the start of the “big one.” Turk also warned if that is the case, then we are nearing the point where gold and silver buyers will, “... totally overrun the central planners.”
Here is what Turk had to say: “The
precious metals have been exhibiting exceptional strength, Eric, and I
am not just talking about their big gains in price. I am referring to
the way they have been trading. Their extraordinary strength is clearly
visible on an intraday chart. Both precious metals have been forming
the same pattern going back to the lows in August when gold was under
$1600 and silver was under $30.”
James Turk continues:
The price of gold and
silver jumps, but then something rare happens. Instead of falling back
in a correction to consolidate their price gains, which is normal
trading action and therefore to be expected, gold and silver just move
sideways. Then, after a few days, they again score another big jump in
price, followed by another sideways move. If you look at their charts
for the last few weeks, there have not been any normal pullbacks.
“There is a lot of money on the sidelines
waiting to enter a market in which physical metal is tight. When you
couple that with the amount of shorts looking to cover, gold and silver
are not being given any opportunity to correct in the normal way with a
typical pullback.
Buyers are not giving the
precious metals a chance to correct. Their price just moves sideways,
thus thwarting the selling from central planners who do not want to see
the precious metals move higher. A sideways consolidation is one of the
strongest patterns you can find in a bull market, so the way gold and
silver have been trading bodes well for more big price gains in the
weeks and months ahead.
In fact, Eric, I keep
asking myself whether this remarkable display of strength is telling us
something important. Is it a subtle signal that we are at the beginning
of an uptrend that will not only lead to new record highs, but is this
the beginning of the move that in the next few months will result in the
‘big one,’ when gold and silver buyers totally overrun the central
planners?
Only time will tell of
course, but the ‘big one’ will be spectacular. Gold and silver will
just keep climbing in panic buying because people will be rushing out of
all types of paper in order to protect their wealth by buying physical
gold and physical silver.
I have been expecting this
‘big one’ for some time - and recommending that everyone patiently
accumulate physical metal while waiting for it. It will happen because
the reality is that the market is bigger than any government or group of
governments acting in concert to manipulate prices with their
interventions.
Governments intervene
because they don't like the message that the market is giving them.
They think they can create a new reality, but they can't. Eventually,
their interventions just distort the market process and prevent true
price discovery that actually reflects prevailing conditions. So these
interventions are always doomed to failure.
Just look at the dozens of
currency collapses since WWII. Each one is plain evidence that
currencies backed by nothing but central planner promises are doomed.
When their collapse occurs, gold and silver do not pull back in a normal
correction. They just keep heading higher.
There are other signs that
are pointing out that this may be the ‘big one’ besides the way gold and
silver are trading. Look at the dollar, which has been heading south
for several weeks now. Its chart looks terrible, and suggests the
flight from paper is building. The same conclusion can be reached by
looking at US Treasuries.
Even though the Fed has
said it will keep long-term interest rates low, T-bond and T-note yields
are creeping up. It is another sign that money is fleeing paper, but
here's the important point, Eric, we cannot predict the future, but we
all intuitively know a safe-haven when we see one, and that of course
means gold and silver. They are the ultimate safe haven because they do
not have counterparty risk.
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