James Turk: “Silver Will Hit New Highs in a Matter of Weeks”!

• With gold’s ‘crazy brother’ silver, anything is possible. This prognostication by James Turk is startling. If it was anyone else I will just ignore it. James Turk is an old and highly experience hand in the precious metals market. The market feedback is that even though silver has sold off 33% from its $49.78 high, the open interest is not falling. Weaker longs have liquidated but new ‘bigger boys’ have joined the fight and increased their longs!
   
  In commodity rout, more traders getting in than out
  By Lisa Shumaker, Reuters
  … This time around, that doesn’t seem to be whole story, or even the right one. Exchange data shows that not all traders were running for the doors; some added to positions, many betting on more losses rather than locking in profits. In the hardest hit markets — oil and silver — the number of bets on the market rose even as prices crashed. … But for open interest to go up even as shorts enter the market it means only one thing: someone else is going long, and long in a big way.
   
• It appears that the feedback that the: Chinese, Russians, Brazilians, Indians … are the Big Boys is correct. They are the strong hands who are probably dumping their USD for precious metals. This will cause immense volatility and is a death knell for the bullion banksters. Sit tight silver bulls, gold’s crazy brother might just stunned everyone with one helluva move to the up side! KingWorldNews.com:  
   
  James Turk – “Silver Will Hit New Highs in a Matter of Weeks”
  By James Turk, Founder of GoldMoney.com
  May 9 (King World News) Silver’s price drop last week has been variously called historic, extraordinary and unprecedented.  It was none of those, as is clear from the following chart (above).  We’ve been here before, note the four red ovals.  All four outline similar drops in price over short periods of time.  
   
  This chart is prepared on a log scale so that the distances shown on the chart can easily be compared in percentage terms.  In other words, last week’s drop in the silver price from near $50 is essentially no different in percentage terms from the drop that occurred once $15 was approached in 2006 or the drop after $8 was reached in 2004.  In both of these prior instances, silver bottomed after the drop, marking a level from which it climbed to eventually make a new high.
   
  The drop in silver’s price in 2008 was different.  Silver continued lower, breaking down from the red oval, but we all know why that happened.  Lehman Brothers had collapsed, and in the subsequent rush for liquidity, every asset class was hit – even gold and silver. ..
   
  So what is ahead for this current correction?  ..  This time I expect silver will take only several weeks before exceeding $49.78, the 31-year high reached on April 25th.  The reason?
   
  As evidenced by silver’s backwardation, .., the demand for physical silver has really accelerated.  As a result of last week’s price decline, backwardation has roughly doubled in size.  This is clearly a a signal of strong demand for physical silver, …
   
  … for the full article click here !

end