Tuesday, March 13, 2012

Why Army of New Buyers Will be Entering Gold & Silver

“There was no technical damage on the gold chart either, Eric. What’s happening here is gold is testing support at $1,700, which is continuing inside the trading range that goes back to late January.

The key overhead resistance level for gold is $1,800 and I expect this level to be tested very soon, just like I expect silver to be testing its overhead resistance in the not too distant future.

On this move, you are going to have army of new people entering the gold and silver markets. The primary reason there will be new entrants to the market is right now the chart is telling me a major news event is likely to happen. That news event will propel gold and silver higher, outside of these consolidation patterns, into new record prices.

So the bottom line is there is absolutely no reason to change one’s outlook about the upside potential for both gold and silver. It’s the same story, currency debasement and the unwinding of the debt problem that is causing more and more investors to move into safe havens.

Gold and silver remain undervalued and more importantly, enable owners of the metals to avoid counterparty risk. So as attention moves from Greece to other countries, expect gold and silver to take center stage.”

- James Turk via a recent King World News interview, Read the full interview here: