James Turk – Silver Formation Projects Spike to $60 – $75 Level

After the explosive upside activity in the gold and silver markets last week, today King World News interviewed James Turk out of Spain to get his take on where the metals are headed from here. When asked about the action in gold and silver, Turk responded, “I like today’s action very much, Eric. Given that gold rose over $100 last week, some correction was expected. The important point, though, is that gold quickly bounced off support at $1,700. I’m encouraged by that action. We may test the $1,700 level one or two times more before heading higher.”

“The same thing for silver, Eric. Last week was absolutely spectacular with silver rising more than 13%. So silver, like gold, is taking a little bit of a breather today. What’s really important, Eric, is the weekly silver chart. Silver is forming a beautiful, long-term, flag consolidation pattern. The flagpole started in 2010 at $18 and peaked at $49 earlier this year. We are now in the flag and we can expect a breakout, I think, within the next few weeks.

Here is the good part, Eric, it projects to a $60 silver price, but given the strength of this pattern, one could easily see $75. The shakeout over the past six months has put a lot of people on the sidelines. I don’t expect that money to come back into the market until silver goes back above $43. When silver takes out $43 it should rocket just like it did earlier this year when it nearly doubled in price.”

When asked about fundamentals, Turk replied, “This intervention by the Japanese central bank is a good example of what is wrong with national currencies….

Continue reading the James Turk interview below:

via My Blog.

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