CITI Bullish On Silver – Greyerz sees $4500 On Gold

Posted: August 24, 2012 | Author: jackbassteam | Filed under: Gold | Tags: Citigroup, Fitzpatrick, King World News, Market sentiment, Moving average, Precious metal, Silver, Technical analysis | Leave a comment »

Silver balls (Photo credit: play4smee)

August 24

Tom Fitzpatrick, a top technical analyst at Citi, continues to be bullish on goldand oil.But in his latest commentary for King World News, he argues that the charts are looking bullish for silver.

Silver has also held nicely above the $27 level, and very recently we have seen silver begin to outperform gold. The silver chart looks very bullish. We believe that silver will continue to outperform gold in this breakout move.
…
The trend line down and 200 day moving average are under threat at $30.37-48 (see chart below). A weekly close above (200 day moving average) would open the way for the double bottom neckline at $37.47 (23% away). As gold goes higher, do not be surprised if Silver becomes the “poor man’s gold trade” and plays some catch up.

Here’s Fitzpatrick’s chart:

Today Egon von Greyerz told King World News, “This is going to be one of the fastest moves that we’ve seen in this bull market (in gold).” Greyerz, who is founder and managing partner at Matterhorn Asset Management out of Switzerland, also said, “… silver is going to move a lot faster than gold.” He also cautioned, “… The ascent is going to be mind boggling.”

Here is what Greyerz had to say: “Eric, this is a good day to talk because the breakout we have been talking about is happening here and now. It had to come, both technically and fundamentally. We are always looking at this market from a fundamental point of view, but the technicals are now confirming the breakout.”

“We could see those levels ($4,500 – $5,000 on gold) within a year and possibly much faster. 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. The same technical target for silver is $150. That would move the gold/silver ratio down to 30/1. This is the type of move that is hard for investors to comprehend, but this will happen because we have had an energy building up in these markets for almost a year.

The release of this energy is going to unleash a massive move. This is not surprising because the destruction of paper money is continuing. Because the money printing is going to accelerate so much in the future, paper currencies are going to reach their intrinsic value, which is zero. We are well under way to that becoming a reality.

We are going to have a combination of short covering, coupled with investment and speculative buying in both gold and silver. So the coming move is going to be spectacular. The ascent is going to be mind boggling.”

Greyerz also added: “Eric, the Fed’s statement yesterday just confirms what I’ve been saying, that there will be unlimited QE. The Fed indicated the printing is imminent. The ECB would respond immediately after the Fed announcement of more QE. I believe we will see this in the coming weeks.

The bottom line here is that people who are not yet invested in gold and silver must not wait for a pullback because this move will be relentless. I believe investors have to jump in now because this will be the last chance to buy gold and silver at bargain prices.

As this move progresses we will see gold advance well over $100 a day. We will also see silver moving several dollars a day. So this will be relentless. I would just add that many of the junior mining shares are likely to have absolutely massive moves to the upside because they are so cheap and so oversold.”