“The outlook for gold remains bullish. Central bank ‘printing presses’ are running at full steam trying to keep up with those governments around the world that are spending more money than they have or are likely to collect in taxes. China’s announcement on Friday that it has increased its gold reserves by 76 percent to 1,054 tonnes is yet another important piece of bullish fundamental news for gold. It is therefore not surprising that gold is in a strong technical position too, as we can see from the following chart.”
Mr. Turk’s long term vision has been very accurate for the past 5-6 years that I have been following him. Buying precious metals IMHO should not be about day trading for short term technical profits. James has been saying all this time to get out of dollars and into gold to protect you life savings from devaluation of the paper. That is 100% accurate, I should know most of my gold was bought about $360 per oz following Mr. Turks position.
Technical trading is one spoke in the wheel which guides the cart, combined with other factors it supports long term strength in metals (no matter who is manipulating them to prop up what currency).
Mark
editor@dgcmagazine.com
Bert:
I have never heard Turk use the number $6,000. The only time he has used a large number is when describing the historical phenomenon of bull markets in tangibles topping at 1 oz gold = the Dow.
Since I am a proponent of the Slow Burn, folks who push big jumps in gold price don’t receive attention here.
I would appreciate your posting a link supporting that statement.
On Gold’s performance in a deflation, see the following:
http://solari.com/blog/?p=1444
One of my indicators of the fundamental value of things is the amount of money spent funding activities that would scare retail away. Lots of money and time being invested in keeping retail out of buying real gold.
Ever wonder why?
Catherine
I’ve been listening to Turk et. al. regarding precious metals for over 10-years now, and the chant has never wavered…… Gold is controlled, but $6,000 per ounce, or higher, is just around the corner.
Unfortunately, the economy is shrinking, debt is being written-off, and therefore I see deflation as the most likely scenario. With precious metals so tightly controlled by the same interests that just crashed our system, I see no path to a gold win for the little guy. It simply is not in the establishment’s interests.
I agree with Dan. It is amusing to read GATA which has promoted the belief that the gold and silver markets are heavily manipulated and have been so for over 10 years try and make sense of PM price movements. If the markets are not free, then how does one try and predict the future price movements from past data?
I agree completely with Mr.Turks analysis. The inflation that is coming will be called “economic recovery” by the media, and establishment economists. The oil price being strangled between $45-$55 enhances the bid for gold as the petro states become disgusted and unable to buy US T-bills. They will dump US assets, and currency. America will see a financial collapse so great that it will take years to come out of.
I don’t understand the consideration given to technical analysis. It carries illogical assumptions in my opinion. It imposes trends on data that may be random in which case it’s like saying the dice know where they’ve been. At other times it gives low quality data undue emphasis. (the closing price of a stock/commodity can and often does have significant variance from that day’s mean average trading price). It gives traits like momentum that belong to physical objects to batches of those low quality data points decided by brains to which those traits don’t apply. But the most obvious evidence to me that technical analysis with its cup handles, double dishes, and head and shoulders belongs in the heap of superstition along with bone or tea leaf reading is that I know of not one billionaire who achieved their status with it.
Commissions are so low that even if the results of technical analysis had small significance it would be immensely profitable. The market could be exploited like a personal casino with the technical analyst running a roulette table. If it works, where is the billionaire? As far as software goes, writing some that could recognize these “patterns” and trade successfully based on them would be relatively simple. Far more complex software has been developed. So, have I missed that billionaire? Does he/she exist?