James Turk – The Start Of Something Big In Silver, Plus The Collapse In Gold Open Interest

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James Turk – The Start Of Something Big In Silver, Plus The Collapse In Gold Open Interest from King World News

With the price of gold surging above $1,230 and silver trading higher as well, today James Turk told King World News that this is the start of something big in the silver market. Turk also discussed the collapse in open interest in the gold market.

The Eventual Turn Higher
December 3 (King World News) – 
James Turk:  “Everyone who understands the precious metals, Eric, knows that they are undervalued. So they also intuitively know that the downtrend in the price of the precious metals over the past several months will eventually turn higher…

Do This And You Won’t Have To Worry About A 2008 Scenario
Of course no one can predict when that turn will come, so I continue to recommend the same strategy that precious metals should continue to be accumulated for the simple fact that you are buying undervalued assets. 
View these purchases as saving money that is outside the banking system, and therefore immune to those types of risks that we saw in 2007 and 2008. 

The same logic applies to the shares of mining companies. If you are prepared to invest in them and accept the risks, accumulate those you have concluded are good value. The good ones will turn higher when the precious metals themselves turn higher. 

Collapse In Gold Open Interest
While we wait for the precious metals to reverse their downtrend and turn higher, I’ve been watching for clues that might indicate the turning point is near. And there have been a couple of important ones recently. 
One of those clues was the collapse in Comex gold and silver open interest over the past several days as the December contract approached first notice day. I didn’t check the historical records, but the collapse in open interest is the largest I can ever recall. I take it as an indication that the market is sold out, which itself might be saying that a turn is at hand. 

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King World News

Interviews with market experts from around the world with a focus on precious metals.