Turk – Central Banks Intervened in Gold Out of Desperation
March 5, 2012
With gold near $1,700 and silver below $34.00, today King World News interviewed James Turk out of Spain. Turk told King World News what level on gold will hold, in the aftermath of the central bank intervention. Here is what Turk had to say about the situation: “We’ve seen this so many times over the past twelve years, Eric. I’m taking last week’s smash in the metals in stride. The fact that central banks chose to intervene when silver had broken out on massive volume and gold was on the verge of a breakout is not surprising. The situation was getting desperate and they had to intervene at that point or things were going to get out of control on the upside.”
James Turk continues:
“For anyone who has been accumulating precious metals over the past twelve years, you have all seen this time and again. But there is an important point to take from this observation, Eric. All of the ham-fisted interventions in the past were eventually overcome, and much higher prices were achieved. I don’t expect this time to be any different from any number of times we have seen this in the past.
The reason, of course, is that the underlying fundamentals for gold and silver remain very bullish. I know that corrections, like the one we are experiencing, can be disconcerting to investors who have made recent purchases….