Wave Goodbye To US$600 Gold

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By Greg Peel

GoldMoney.com’s founder James Turk is a card-carrying gold bug. However, in a report published on Monday Turk supports his argument with a technical assessment. Notes Turk:

“It has now been more than one month since the January 5th low, and the performance by both gold and silver has been impressive. Gold has climbed $62.60, or 10.3%. Silver has done even better, climbing $1.75, or 14.4%.”

Silver, says Turk, looks even better than gold. Turk believes we may have seen a “selling climax” on January 5 and the probability is rising that gold will “never go back below US$600/oz”. He considers it a 75% probability that gold will never go back to US$500/oz, and a 98% probability for US$100/oz, just to put things in perspective.

Turk further points out, for the record, that gold waved goodbye to US$35/oz when the Gold Standard was abandoned by President Nixon and the US dollar became a fiat currency. No fiat currency in history has ever survived, notes Turk. The US dollar may be the exception to the rule, he says, “But if you don’t like the long odds of that outcome, buy gold instead”.

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