Comment: James Turk - Gold & Silver To Overrun Central Planners!

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James Turk - Gold & Silver To Overrun Central Planners!

“The precious metals have been exhibiting exceptional strength... and I am not just talking about their big gains in price. I am referring to the way they have been trading. Their extraordinary strength is clearly visible on an intraday chart. Both precious metals have been forming the same pattern going back to the lows in August when gold was under $1600 and silver was under $30.” ...

Governments intervene because they don't like the message that the market is giving them. They think they can create a new reality, but they can't. Eventually, their interventions just distort the market process and prevent true price discovery that actually reflects prevailing conditions. So these interventions are always doomed to failure.

Just look at the dozens of currency collapses since WWII. Each one is plain evidence that currencies backed by nothing but central planner promises are doomed. When their collapse occurs, gold and silver do not pull back in a normal correction. They just keep heading higher.

... the Dollar. Its chart looks terrible, and suggests the flight from paper is building. The same conclusion can be reached by looking at US Treasuries.

Even though the Fed has said it will keep long-term interest rates low, T-bond and T-note yields are creeping up. It is another sign that money is fleeing paper, but here's the important point, Eric, we cannot predict the future, but we all intuitively know a safe-haven when we see one, and that of course means gold and silver...

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul