Gold is great, so too is silver

In this exclusive interview with James Turk, he discussed gold, but let’s start off with what he had to say about silver: “Whenever I look at Silver I keep going back to the wonderful blog piece you wrote on October 18th, titled, ‘Is Silver the Next Apple?’ That long-term chart of Apple conveys an important message. Despite five major corrections, over ten years, shares of Apple, nevertheless, rose 70 fold. If you were shaken out on any of those corrections, you would have missed one of greatest bull moves in history.”

James Turk continues:

“So that readers globally can get a visual of how violent some of the corrections in Apple have been, I am including a long-term chart of AAPL below. As was mentioned in your October 18th piece, there were five major corrections in Apple, ranging from 27% to 82%, which long-term investors had to endure in order to make 70 times their money.

We have to transfer that big picture thinking to silver. Over the past seven months, silver has undergone what everybody seems to believe was a very nasty correction. However, a weekly chart of silver is still showing a very bullish picture. The flag pattern, which you and I have spoken about previously, is still very much in place.

If anything, the patten has now become stronger because silver is now testing support in the high 20s and looks like it is forming a double bottom. I still think this flag pattern will send silver to $70 in three months, once silver has broken out to the upside. Because it is a descending flag pattern, the breakout pattern has now moved down to $37.50, but $35 is the more important resistance level.

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Posted by Silver Guru on Jan 9 2012. Filed under Silver Analysis. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry