Monday 24 January 2011

Is James Turk the new Chief bell-ringer and bottle-washer?

King World News: James Turk - Silver in Backwardation, Set to Explode

"What this backwardation shows is that there is a disconnect between the physical and the paper markets in silver. As I said previously, the silver shorts simply cannot hold the paper price down here any longer without seriously discrediting the paper silver market as a price discovery mechanism.

Gold is not in backwardation, nevertheless the demand for physical gold is extremely intense. With the sentiment indicators at very low levels, it suggests we are about to see a stunning short covering rally in gold.”

(Bold emphasis above is mine, highlighting phrases of particular special interest to those Freegolder among the audience.)

It will be interesting to see if Turk is now the sell signal for metals, in particular silver. Or if he is once again right in this call. I do, however, note (prior to reading this KWN article) that the silver price is breaking down today and gold is following. It'll be interesting to see how this progresses, methinks...

For my part, I am simply looking forward to yet another good opportunity to buy in at better prices in the short term. In the longer term, Turk is almost certainly going to be correct here IMO.

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