James Turk’s Gold Price Outlook for 2010
James Turk’s outlook for 2010 is a very interesting piece on gold and silver. Mr. Turk was famous in the 1970’s for calling gold’s rising trend. In the article Mr. Turk states that he believes that the price of gold will break $2,000 per ounce. He further states that he believes the floor for gold is $1,050 per ounce, which is the price at which India bought over 200 metric tonnes for, from the IMF.
Mr. Turk further states that he believes we are only in the second phase (of 3 phases) of this gold bull market. The third phase is the panic phase, where everyone sees what is happening and everyone wants in, driving values much higher.
He also states, “There will be two forces driving gold higher. The first will be the continuing purchases of government paper by the Federal Reserve as the dollar moves ever closer to hyperinflation. The second will be the growing demand for physical metal in preference to paper-gold.”