Something truly very big is coming to the financial markets, and the precious metals are the place to be when that something big happens.
Too many analysts have come out lately, throwing around lofty targets to the price of gold and silver markets, and to take place within a very short period of time, for nothing concrete scheduled by global monetary ‘authorities’.
Something more than mere conjecture is at play. The latest prediction for a moonshot in the silver market comes from Goldmoney Founder James Turk, who foresees, not only a massive short squeeze coming, but also surmises, at least, momentum also popping the top off the price of the poor-man’s monetary metal.
“I expect to see $68-$70 in 2-to-3 months,” Turk tells King World News (KWN), Monday.
Though incredible as that prediction may seem, others very close to the silver (and gold) market expect a similar explosive move in the metal.
“We could see those levels ($4,500 – $5,000 on gold) within a year and possibly much faster,” Swiss money manager Egon von Greyerz told KWN, Aug. 23. “This autumn we are going to have a very strong move.
“If we look at silver, silver is going to move a lot faster than gold,” he added. “The same technical target for silver is $150. That would move the gold/silver ratio down to 30/1.”
Whatever the catalyst for such an eye-popping move in the metals will be, someone in-the-know convinced GATA’s Bill Murphy that the coming news will be big—big enough to unleash silver from the grips of the JP Morgan-led cartel.
“The fellow I spoke with I’ve known for years, one of the wealthier men in all of Europe,” Murphy told theSGTreport, Jul. 19. “He’s got a lot of connections . . . It will be tough for the gold and silver markets [during the month of July], but starting in August they would start to ‘go nuts’, and they would ‘stay nuts’ for a long time. . . Big, big moves are coming, starting in August.”
So far, Murphy’s source is spot on.
After briefly falling below $28, Aug. 20, the silver price soared $3.75 cents to $31.72, or 13.5 percent, to close out the month of August, breaking out of its 15-month-long descending trend line.
Could a truly favorable announcement from the CFTC regarding the JP Morgan manipulation scheme in the silver market be the catalyst for such a big move in silver? Not likely. But the news that could cause silver to “go nuts” might come from an announcement of another sort—a coordinated announcement by central bank of more ‘QE’, as JSMineset’s Jim Sinclair has suggested many months ago is inevitable.
It appears that Sinclair’s prediction, too, could be spot on, and if it were to come to pass, the flood of cash into the gold and silver market from hedge fund and institutional money managers would provide the needed ammunition to overwhelm JP Morgan’s price suppression scheme.
“Central banks need to take a more international perspective, recognize their collective influence and take into account monetary policy spillovers,” Jaime Caruana, general manager of the Bank for International Settlements told policymakers at Jackson Hole, Montana, the annual venue for central bankers.
The source of that quote comes from Reuters’ Alister Bull, who added, “Bernanke, in the audience at the luncheon address, did not flatly reject the suggestion, but he noted that a discussion about international monetary policy cooperation also implied cooperation on foreign exchange rates.”
After witnessing the effects on financial markets due to rapidly changing exchange rates leading up the 1987 stock market crash and the exacerbation of the Asian currency crisis of 1997-8, central planners won’t want to repeat that exercise.