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23rd January 2014, 07:12 AM
Turk - The Silver Spike Is Going To Shock The World In 2014
As markets continue to see some wild trading as we start 2014, today James Turk told King World News that a massive spike in the price of silver is going to shock the world in 2014. Turk also warned about central planners’ desire to control humanity through banking and currencies, and also included a fantastic chart of silver.
January 20, 2014
Turk: “The big question everyone should be asking here, Eric, is: When are gold and silver going to break out from the huge base both precious metals have been forming since their low price was reached last June?....
“I think we are getting very close. Will it happen this week? Will it happen before the end of this month? Who knows? But even if the upside breakout is still a few weeks away, or even if the precious metals need to make one more dip into support around $1,235 and $19.90 respectively, we are getting very close.
It is amazing to watch gold and silver trading at this point. Watching gold trying to break out and hold above resistance at $1,250 can be compared to a rocket trying to achieve escape velocity. But while a rocket is held back by gravity, gold is being held back by market intervention by central planners.
The imminent break out and suppression by central planners brings up another key point: All of the gold leaving Western vaults and moving from West to East is incredibly significant. The physical metal the central planners need to maintain their interventions is rapidly disappearing. Eventually the central planners will throw in the towel, just like they did with the collapse of their anti-gold cartel in the 1960s called the ‘London Gold Pool.’
They will eventually give up when they no longer have the ammunition they need to maintain their fractional-reserve system, and that ammunition already appears to be nearly depleted. That’s why it is taking the Bundesbank seven years to get its gold returned to it, which assumes of course that it will ever be returned.
In this fractional-reserve gold system there are more claims on gold than the actual amount of physical gold that exists. This is the Achilles heel of central planners and their apologists for these market interventions. It is this imbalance between paper promises and physical metal that has caused monetary crises throughout history, and this time will not be any different, with the result that a lot of paper promises will be broken and the gold price will soar because of the scramble for physical metal.
When gold and silver finally hurdle above their resistance points, it probably won’t mean the end of government intervention by the central planners. They will fight on, even though they are losing the war. Governments and central bankers want to control money because they aim to control economic activity and the lives of every one of us.
This control benefits them and the banks and politicians they serve, but it doesn’t benefit the economic activity of the public. This is one good reason that explains why wealth is being concentrated in fewer and fewer hands. It is a direct result of central planning.
When the central planners do lose a battle in the gold war, it means that they are falling back to re-group in what has been their 13-year managed retreat. They beat gold up as much as they can, but always and inevitably are unable to defend key resistance points for one simple reason: While they are intervening in gold with their right hand, at the same time with their left hand they are debasing currencies with the printing press.
This debasement of the currency they manage means that they will always have to retreat. They step back so that gold moves to a higher price at which the central planners can continue to fight their war against free markets.
This strategy contrasts today with how they fought their war against gold in the 1960s. Back then the London Gold Pool cartel tried to maintain a fixed $35 per ounce price. This time around they have allowed the gold price to rise more than 13% per annum, on average, over the last 13 years because doing so makes their battle easier.
These rises in the gold price help facilitate the ongoing debasement of the dollar. In effect, it is letting steam out of the kettle. But the kettle is ready to explode because gold and silver are way too cheap at current price levels.
So the strategy I recommend remains the same: Continue to accumulate physical gold and physical silver because they remain extremely undervalued, and they are money that is safe because they are outside of the banking system. The following silver chart shows the potential awaiting us, Eric.
We can see how silver is being accumulated since its low in the 1990s. This “cup and handle” pattern is a classic, and it looks like the handle is finally ready to be completed as silver is now set to vault higher. But the real excitement will start when silver breaks above its all-time high of $50 per ounce. Gold of course is still well above its January 1980 record, so silver has a lot of catching up to do. As this explosion in the price of silver takes place it will shock the world and leave market participants speechless.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/1/20_Turk_-_The_Silver_Spike_Is_Going_To_Shock_The_World_In_2 014.html
As markets continue to see some wild trading as we start 2014, today James Turk told King World News that a massive spike in the price of silver is going to shock the world in 2014. Turk also warned about central planners’ desire to control humanity through banking and currencies, and also included a fantastic chart of silver.
January 20, 2014
Turk: “The big question everyone should be asking here, Eric, is: When are gold and silver going to break out from the huge base both precious metals have been forming since their low price was reached last June?....
“I think we are getting very close. Will it happen this week? Will it happen before the end of this month? Who knows? But even if the upside breakout is still a few weeks away, or even if the precious metals need to make one more dip into support around $1,235 and $19.90 respectively, we are getting very close.
It is amazing to watch gold and silver trading at this point. Watching gold trying to break out and hold above resistance at $1,250 can be compared to a rocket trying to achieve escape velocity. But while a rocket is held back by gravity, gold is being held back by market intervention by central planners.
The imminent break out and suppression by central planners brings up another key point: All of the gold leaving Western vaults and moving from West to East is incredibly significant. The physical metal the central planners need to maintain their interventions is rapidly disappearing. Eventually the central planners will throw in the towel, just like they did with the collapse of their anti-gold cartel in the 1960s called the ‘London Gold Pool.’
They will eventually give up when they no longer have the ammunition they need to maintain their fractional-reserve system, and that ammunition already appears to be nearly depleted. That’s why it is taking the Bundesbank seven years to get its gold returned to it, which assumes of course that it will ever be returned.
In this fractional-reserve gold system there are more claims on gold than the actual amount of physical gold that exists. This is the Achilles heel of central planners and their apologists for these market interventions. It is this imbalance between paper promises and physical metal that has caused monetary crises throughout history, and this time will not be any different, with the result that a lot of paper promises will be broken and the gold price will soar because of the scramble for physical metal.
When gold and silver finally hurdle above their resistance points, it probably won’t mean the end of government intervention by the central planners. They will fight on, even though they are losing the war. Governments and central bankers want to control money because they aim to control economic activity and the lives of every one of us.
This control benefits them and the banks and politicians they serve, but it doesn’t benefit the economic activity of the public. This is one good reason that explains why wealth is being concentrated in fewer and fewer hands. It is a direct result of central planning.
When the central planners do lose a battle in the gold war, it means that they are falling back to re-group in what has been their 13-year managed retreat. They beat gold up as much as they can, but always and inevitably are unable to defend key resistance points for one simple reason: While they are intervening in gold with their right hand, at the same time with their left hand they are debasing currencies with the printing press.
This debasement of the currency they manage means that they will always have to retreat. They step back so that gold moves to a higher price at which the central planners can continue to fight their war against free markets.
This strategy contrasts today with how they fought their war against gold in the 1960s. Back then the London Gold Pool cartel tried to maintain a fixed $35 per ounce price. This time around they have allowed the gold price to rise more than 13% per annum, on average, over the last 13 years because doing so makes their battle easier.
These rises in the gold price help facilitate the ongoing debasement of the dollar. In effect, it is letting steam out of the kettle. But the kettle is ready to explode because gold and silver are way too cheap at current price levels.
So the strategy I recommend remains the same: Continue to accumulate physical gold and physical silver because they remain extremely undervalued, and they are money that is safe because they are outside of the banking system. The following silver chart shows the potential awaiting us, Eric.
We can see how silver is being accumulated since its low in the 1990s. This “cup and handle” pattern is a classic, and it looks like the handle is finally ready to be completed as silver is now set to vault higher. But the real excitement will start when silver breaks above its all-time high of $50 per ounce. Gold of course is still well above its January 1980 record, so silver has a lot of catching up to do. As this explosion in the price of silver takes place it will shock the world and leave market participants speechless.”
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/1/20_Turk_-_The_Silver_Spike_Is_Going_To_Shock_The_World_In_2 014.html