Turk - Dollar Ready to Collapse, Silver Squeeze to Continue

[Ponce]

With gold higher and silver up almost $1.30, King World News today interviewed James Turk out of Spain. Turk had this rather frightening warning about the dollar, “The dollar right now is hanging on the precipice. If we break below 77 on the dollar index, look out below. I don’t think people really appreciate how scary the dollar chart is here, or how ominous the implications really are. There’s no predicting how far the dollar could plunge if confidence breaks.”
February 25, 2011

Turk continues:

“You’ve got civil war breaking out in North Africa and you have rebellions happening in the Middle-East. In this kind of geopolitical situation, in the past the US dollar would always rally, but this time it can’t even bounce. You know Eric the other side of this coin is that if the dollar falls off the edge of a cliff, precious metals are going to skyrocket.”

When asked about silver Turk stated, “During the most illiquid time of the trading day, somebody decided to take out all of the stops in silver. If you were not following during business hours in the Pacific Ocean you missed it. I woke up this morning and looked at the chart and couldn’t believe what happened while I was sleeping.

The important point Eric is that no technical damage was done and in fact the situation has become even more bullish because that little smack down overnight took out all of the weak hands.

With this month’s important options expiry now behind us, I’m looking for higher prices next week. Even though the March/May spread has flattened a little, the backwardation continues to grow to 2015 and has ballooned further to $1.16. The short squeeze is continuing to develop. The shorts are trapped and whether the trap springs this week or in a month or two I don’t know, but we are getting very close.”

When asked about gold specifically Turk remarked, “While silver did get hit in overnight trading, gold hardly moved and then snapped right back. Remember I said last time that the gold chart is beginning to look really strong, that is what the event last night displayed.

Gold is incredibly resilient and looks coiled for an explosive move higher. We started our initial probe of the all-time high this week closing in on $1,430 before backing off. Look for another probe of that $1,430 level very soon. It won’t be long Eric before we take out that all-time high, particularly if the dollar falls off the edge of a cliff.”

It is worth noting that in his King World News interview today Art Cashin also warned about the US Dollar being on the verge of serious trouble. KWN readers globally should keep a close eye on the dollar next week to see if it begins to break down. If that happens it will increase bids in both the gold and silver markets.

[mick silver]

i think all here know this are they feel it ... something headed this way an it not good . they need every to fail to make there NWO work

[Serpo]

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/2/26_Jim_Rickards.html


http://4.bp.blogspot.com/-naUTJzQoclw/TWhFQmr0JnI/AAAAAAAAAHo/QSdpFmSFLTQ/s1600/snapshot-454.png

[Spectrism]

I listened to Larry Edelson who publishes through Martin Weiss. Larry has been pretty good on his predictions. He thinks silver will drop short term.

The problem I see is this: the rules of technical analysis and even fundamentals don't matter anymore. All the rules are broken and the game is rigged. Hard reality will ultimately rule... but guessing when is an oft-losing proposition.

[Libertytree]

I listened to Larry Edelson who publishes through Martin Weiss. Larry has been pretty good on his predictions. He thinks silver will drop short term.

The problem I see is this: the rules of technical analysis and even fundamentals don't matter anymore. All the rules are broken and the game is rigged. Hard reality will ultimately rule... but guessing when is an oft-losing proposition.


Did he happen to specify what he thought that drop might be?

[Serpo]

New Rules Will Cause Panic For Shorts


http://jsmineset.com/

[Spectrism]

I listened to Larry Edelson who publishes through Martin Weiss. Larry has been pretty good on his predictions. He thinks silver will drop short term.

The problem I see is this: the rules of technical analysis and even fundamentals don't matter anymore. All the rules are broken and the game is rigged. Hard reality will ultimately rule... but guessing when is an oft-losing proposition.


Did he happen to specify what he thought that drop might be?


He said it could drop as far as $23.

[Ponce]

Well Spect, as far as I am concern if it drops to 23 that could only mean that the dollar dropped that much more......the new world is not like the old one and the game is now a new one.

[FunnyMoney]

He said it could drop as far as $23.


That is quite a call. Please provide the link or the article so we can see the details of the call.

I'm not saying silver is not a very volitile and complex market, but I would need to read the article to address it properly. In a lot of bull markets during the early stages, which silver is still in as it is still in phase I of the 3-stage classic super bull cycle, when a price point has left the station, those without tickets are often left having to pay up to get back on board. That is the way 7 was. That is also the way 11 was (with the exception of that severe plunge that hit all markets in the great collapse of '08). And remember, at 11 you only had a limited number of days and premiums for most products were still running above 11. Just like 7 and 11, I show significant resistance already built up and quite firm just under 30. Resistance is very well established at the 28.48 to 28.80 range, so much so that I would be very suprised to see those prices too much more, if ever. Short term traders must be itching for a return to under 30 and another chance to load up after watching the Dec 25th and the Feb 4th patterns as they played out. And then, there's amazing resistance at 25.25. A move to $23 would almost definately see premiums keep things above 26 and would thus be very short lived and I don't think it happens. Technicians often make mistakes, but from what I have been seeing, this is the real deal, silver is taking on intense price support. All eyes must be on 34 after Friday's move. People, even seasoned technical traders often fail to remember the big picture. How soon everyone forgot that a dollar move was a big deal - now that we;ve been having them so much. But Friday's one day move was a gain of 4%, up $1.27. We absolutely powered through 33 dolars 33 cents. There is a value to real money and that value is getting figured out in the silver market right as we speak.

[Twisted Titan]

If Silver takes a 9 to 11 dollar haircut The Physical market will go ballistic.

The only people that will sell in a market like that are the truly desperate ( and there wont be that many)

Mines will go off line because they cant extract ore and a loss that deep.

It will create another lockout that will make the silver lockout 08 seem tame.

23 dollar silver??

BRING IT.......I GOT A LOAD OF FIAT WITH YOUR NAME ON IT SUCKER.


T

[Spectrism]

He said it could drop as far as $23.


That is quite a call. Please provide the link or the article so we can see the details of the call.

I'm not saying silver is not a very volitile and complex market, but I would need to read the article to address it properly. In a lot of bull markets during the early stages, which silver is still in as it is still in phase I of the 3-stage classic super bull cycle, when a price point has left the station, those without tickets are often left having to pay up to get back on board. That is the way 7 was. That is also the way 11 was (with the exception of that severe plunge that hit all markets in the great collapse of '08). And remember, at 11 you only had a limited number of days and premiums for most products were still running above 11. Just like 7 and 11, I show significant resistance already built up and quite firm just under 30. Resistance is very well established at the 28.48 to 28.80 range, so much so that I would be very suprised to see those prices too much more, if ever. Short term traders must be itching for a return to under 30 and another chance to load up after watching the Dec 25th and the Feb 4th patterns as they played out. And then, there's amazing resistance at 25.25. A move to $23 would almost definately see premiums keep things above 26 and would thus be very short lived and I don't think it happens. Technicians often make mistakes, but from what I have been seeing, this is the real deal, silver is taking on intense price support. All eyes must be on 34 after Friday's move. People, even seasoned technical traders often fail to remember the big picture. How soon everyone forgot that a dollar move was a big deal - now that we;ve been having them so much. But Friday's one day move was a gain of 4%, up $1.27. We absolutely powered through 33 dolars 33 cents. There is a value to real money and that value is getting figured out in the silver market right as we speak.


http://www.uncommonwisdomdaily.com/separating-the-wheat-from-the-chaff-on-china%e2%80%99s-economy-11378

Here is a piece that applies:


Gold: I am still short-term bearish, within the confines of a long-term bull market. Yes, gold has defied the gravity of its downward sloped cycles and overbought technical conditions. But gold is still bearish. I expect to see sub $1,300 gold, probably close to $1,225 gold — before the next big leg up unfolds.

Silver: Same as gold. It’s overbought, and the cycles are largely pointing south short term. I expect to see silver test the $22 to $23 level in the weeks ahead, even if it manages to eke out a slight new record high first. That would be a decline of nearly $8 per ounce, as much as 25%. Wait for the all clear from me before entering this market on the long side.

The U.S. Dollar: Like China, the dollar is another market so many analysts continue to get wrong. Yes, at times the dollar does strengthen a tad. But only against the sickly euro. Overall, the dollar is a disaster in the making, in a long-term bear market which will see the dollar lose its status as the world’s reserve currency.

I made that forecast more than 10 years ago, it’s been right as rain, and the dollar has done nothing but lose value year after year. Now, even the International Monetary Fund (IMF) is officially calling for a new reserve currency. Check out its just released report at http://www.imf.org/external/np/pp/eng/2011/010711.pdf.

The Dow Industrials and S&P 500: Topping. There might be one or two more stabs at the 12,500 level in the Dow, but the next big move is down. Steer clear of the broad stock markets now, with the exception of my hand-picked resource and tangible asset based equity investments, per my Real Wealth Report.

I don't buy into this. The only way this can happen with the backing away of world powers from the dollar would be if the dollar were suddenly redeemed to an increased value. I don't see that happening.... unless we go to war.... and it would have to be a world war that wiped out chinese manufacturing.

He seems to rely on the cycle counts- and I think we are in a time UNLIKE any before in history. Patterns & cycles are less predictive in such times.

[uncletonoose]

If Silver drops to 23, as Trinity says, I'll eat my shit caked underpants!!!!!!!

[Neuro]

The current backwardation seems to contradict a major drop in Silver at this point. I think we will see it go up towards 35-40, then maybe after that we could see a drop down to the low 20's in the summer, that would be the buying opportunity of a life time, but expect premiums of +5 dollars for smaller bars and rounds, if you can find any.... I think a year from now silver will be north of $50.

[woodman]

After what happened in 2008, anything is possible as far as I'm concerned. I'm not betting on it, but a huge drop in silver (PM's) would not surprise me.




Nor would it surprise me. The fiat dollar is 'coin of the realm' for now. I believe it will end in hyperinflation because of out of control government spending/debt, but for the near term, anything is possible. Watch them pull more rabbits out of their ass, but before a decade is out they will run out of rabbits. Simple math says it can't go on forever.

[1970 silver art]

There is that possibility that silver could have a huge drop like it did in 2008 but how likely is it? Who really knows? The long term negative fundamentals (falling dollar value, growing Federal deficit, increasing national debt, printing $'s) would seem to favor gold and silver and other commodities. Those long term fundamentals have not changed and will IMO never change unless the gov't suddenly decides to 1.) Drastically cut Federal spending (i.e. making deep cuts in entitlement spending) and balance its budget and 2.) Completely pay off the national debt. Off course I do not see the Federal gov't changing its ways that and they will continue to travel on this destructive path of deficit spending despite what the liars in D.C. are promising. Things will get worse from that standpoint and I am sure that Bernanke will continue with the next episode of the "Quantitative Easing Show" (QE3 and then QE4, QE5............). This will be a long running show until the $ completely collapses.

Artificially suppressing silver (and gold) will eventually end up being a losing cause because those long term fundamentals will defeat artificial price suppression by JP Morgan and others. The only thing that cannot be answered accurately is the length of time that it will take for the long term negative fundamentals to finally overcome the power of the manipulators of the paper price of silver.

[Libertarian_Guard]

In the short-term or on a spike, silver could fall BIG TIME. Silver bulls know this and are psychologically prepared, and will not sell into it. But clearly, at this time, the upside potential far outweighs a serious meltdown. Recently the selloffs have been short lived. If you’ve stepped away from the computer, or blinked, you may have missed them altogether. I think this trend will continue.