Turk – Corrective Action in Gold is Prelude to Bullish Explosion

2/3/12

With gold trading roughly $35 lower, silver down nearly $1, today King World News interviewed James Turk out of Spain. Turk told King World News that this corrective action in gold and silver is healthy and a prelude to a major bullish move to the upside. Here is what Turk had to say about money on the sidelines and where gold and silver are headed: “Sooner or later that money is going to realize the train is pulling away from the station. Whether this money comes in next week or the week after, I do very much like this trading action. I’m very bullish here short-term on gold and silver, it looks very, very good.”“It’s still a mess. Greece is on the front-burner again. They haven’t been able to work out a deal. Now they are talking about even more concessions and bigger losses. This is just going to cause a chain reaction when they finally end up doing it and the deadline date is mid-March. Greece has to pay 13 billion euros on a bond.

If they don’t get the money to make that bond payment, then the cascade of defaults starts. Then you get into the derivative knock-on, the credit default insurance and everything else. So Europe is about ready to blow up and that’s one of the reasons I’m so bullish on the metals the first half of this year.

People are really going to have to come in soon if they want to start catching this move. Right now we basically have neglect and apathy on our hands….

“This is a sign of the potential bullishness in the market, in the sense that we are probably going to go higher.

There are very few people following gold and silver at the moment, despite the fact that they have started this year off very well. Silver was up 19% in the month of January and gold was up 11% in the month of January. That’s a fantastic start to the year.”

When asked about a continued wealth transfer to those owning gold and silver, Turk stated, “Gold doesn’t really create wealth, it’s just a sterile asset. It doesn’t have a cash flow and it doesn’t have a balance sheet or a P/E ratio. When the gold price is rising, what you are doing is taking wealth that’s already been created and is in the hands of people who own a fiat currency and it’s taking the wealth away from the people who own that fiat currency and putting it into the hands of people who own gold.

So you have this wealth transfer taking place. My expectation is that this wealth transfer is going to be one of the most phenomenal ones in monetary history. And to be part of it you have to own physical gold and silver, this is what you need to do to take advantage of it.”

Eric King

KingWorldNews.com

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