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S&P warning about negative watch on the AAA US credit rating
Silvercar2
Posts: 51 Forumite
With news from S&P about negative watch on the AAA US credit rating and gold closing at new all-time highs & silver at 31 year highs, today King World News interviewed James Turk out of London. Turk had this to say, “The big news today was the announcement by the S&P that they are putting the US government’s debt on credit watch with negative implications. That announcement kept gold strong all day, but it couldn’t quite make it to $1,500. Despite that, it still looks like we will be above $1,500 this week.”
April 18, 2011
Turk continues:
“The warning from S&P is unlikely to change the spending habits of Washington’s politicians. Given the willingness of the Federal Reserve to monetize the government debt there is no major fundamental change in the outlook for the dollar. If anything it’s a wake up call for the rest of the world that the rating agencies are starting to recognize the reality that the US finances are deteriorating so rapidly, it hardly qualifies any longer for its AAA rating.
Obviously Eric this is going to cause people to look for safe havens. Given that there are no safe haven currencies anymore like there were in the 70’s when you needed to get out of the dollar, the only alternative left is gold and silver. In fact the news about the University of Texas holding $1 billion of gold is clear evidence that market leaders are abandoning the dollar for the safety of precious metals.”
When asked about silver specifically Turk remarked, “Eric it is going from strength to strength. Silver tried to correct today and for a brief while it was down almost $1 from the day before, but when the smoke finally cleared silver ended up on the day closing at a new 31 year high. We are closing in on our $50 target and while I thought it was going to happen before the end of June, the strength that silver is exhibiting indicates to me that it could happen within a couple of weeks.
With the S&P announcement today it was an ideal time for shorts on the US dollar to cover and book some profits so they did. This short covering bounce may last a few more days, but the fundamental outlook for the dollar remains bleak. What the S&P was signaling is that the US government needs to dramatically cut its spending, but I see no sign of politicians in Washington mending their ways.
Although we can’t forecast how long this short-term counter-trend move on the dollar will last, the bottom line is that a spectacular waterfall decline is going to happen at some point. As I have said before Eric, this event will shock the world leaving only those with gold and silver to weather the storm.”
When asked about the underperformance of gold shares Turk responded, “It’s depressing to see the mining share action today with gold and silver putting in such strong performances. But don’t let your emotions fool you and send you in the wrong direction. Sometimes the markets really do try your patience and this is one of those moments that we are seeing right now in the mining shares. KWN readers should continue accumulating the mining shares because at some point in the near future we will see a move that will be absolutely breathtaking.”
Turk was correct to note the underperformance of the mining shares. As Pierre Lassonde said in his last KWN interview, the mining shares were already one standard deviation away from the mean and the situation has worsened since that interview. Keep in mind that the mining shares will move from dramatic undervaluation to overvaluation and you will want to make sure you participate in that sensational price restructuring. As Turk stated that move in the mining shares, “Will be absolutely breathtaking.”
Eric King
KingWorldNews.com
April 18, 2011
Turk continues:
“The warning from S&P is unlikely to change the spending habits of Washington’s politicians. Given the willingness of the Federal Reserve to monetize the government debt there is no major fundamental change in the outlook for the dollar. If anything it’s a wake up call for the rest of the world that the rating agencies are starting to recognize the reality that the US finances are deteriorating so rapidly, it hardly qualifies any longer for its AAA rating.
Obviously Eric this is going to cause people to look for safe havens. Given that there are no safe haven currencies anymore like there were in the 70’s when you needed to get out of the dollar, the only alternative left is gold and silver. In fact the news about the University of Texas holding $1 billion of gold is clear evidence that market leaders are abandoning the dollar for the safety of precious metals.”
When asked about silver specifically Turk remarked, “Eric it is going from strength to strength. Silver tried to correct today and for a brief while it was down almost $1 from the day before, but when the smoke finally cleared silver ended up on the day closing at a new 31 year high. We are closing in on our $50 target and while I thought it was going to happen before the end of June, the strength that silver is exhibiting indicates to me that it could happen within a couple of weeks.
With the S&P announcement today it was an ideal time for shorts on the US dollar to cover and book some profits so they did. This short covering bounce may last a few more days, but the fundamental outlook for the dollar remains bleak. What the S&P was signaling is that the US government needs to dramatically cut its spending, but I see no sign of politicians in Washington mending their ways.
Although we can’t forecast how long this short-term counter-trend move on the dollar will last, the bottom line is that a spectacular waterfall decline is going to happen at some point. As I have said before Eric, this event will shock the world leaving only those with gold and silver to weather the storm.”
When asked about the underperformance of gold shares Turk responded, “It’s depressing to see the mining share action today with gold and silver putting in such strong performances. But don’t let your emotions fool you and send you in the wrong direction. Sometimes the markets really do try your patience and this is one of those moments that we are seeing right now in the mining shares. KWN readers should continue accumulating the mining shares because at some point in the near future we will see a move that will be absolutely breathtaking.”
Turk was correct to note the underperformance of the mining shares. As Pierre Lassonde said in his last KWN interview, the mining shares were already one standard deviation away from the mean and the situation has worsened since that interview. Keep in mind that the mining shares will move from dramatic undervaluation to overvaluation and you will want to make sure you participate in that sensational price restructuring. As Turk stated that move in the mining shares, “Will be absolutely breathtaking.”
Eric King
KingWorldNews.com
0
Comments
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“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »
If that's what you have on the menu tonight Hamish, then it looks like your credit rating has been cut.
Maybe your response is related to the news that gold has hit an all time high. If you had invested in some of it, you might have had the rib-eye back on the plate.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
SmeaSilver wrote: »I`m sure Hamish hates the fact that silver just passed $44oz and £27oz.
Do you now regret all those times you insisted gold and silver were going to crash 100% guaranteed?
FOR THE LOVE OF GOD, IT DOESN'T MATTER WHAT HAMISH THINKS ABOUT SILVER, OR WHAT HAMISH, OR ANY OTHER PERSON FOR THAT MATTER, THINKS ABOUT ANY ASSET CLASS!!! HE'S AN ANONYMOUS, SINGLE POSTER ON AN UNIMPORTANT INTERNET FORUM THAT ABOUT 12 PEOPLE READ!!! HIS OPINION WHETHER SILVER GOES UP OR DOWN IS ABOUT AS IMPORTANT AS WHETHER I THINK IT WILL GO UP OR DOWN. GET A LIFE, STOP LOGGING ON WITH STUPID SILVER USERNAMES AND INVEST IN YOUR SILVER IN PEACE AND QUIET. FOR THE LOVE OF CHRIST ON A BICYCLE, NO ONE CARES WHAT YOU AND HAMISH THINK ABOUT THE PRICE OF SILVER!!!!!!
Okay, feel a bit better now.0 -
FOR THE LOVE OF GOD, IT DOESN'T MATTER WHAT HAMISH THINKS ABOUT SILVER, OR WHAT HAMISH, OR ANY OTHER PERSON FOR THAT MATTER, THINKS ABOUT ANY ASSET CLASS!!! HE'S AN ANONYMOUS, SINGLE POSTER ON AN UNIMPORTANT INTERNET FORUM THAT ABOUT 12 PEOPLE READ!!! HIS OPINION WHETHER SILVER GOES UP OR DOWN IS ABOUT AS IMPORTANT AS WHETHER I THINK IT WILL GO UP OR DOWN. GET A LIFE, STOP LOGGING ON WITH STUPID SILVER USERNAMES AND INVEST IN YOUR SILVER IN PEACE AND QUIET. FOR THE LOVE OF CHRIST ON A BICYCLE, NO ONE CARES WHAT YOU AND HAMISH THINK ABOUT THE PRICE OF SILVER!!!!!!
Okay, feel a bit better now.
if you have a life, why are you reading and commenting on this thread
0 -
SmeaSilver wrote: »I`m sure Hamish hates the fact that silver just passed $44oz and £27oz.
Do you now regret all those times you insisted gold and silver were going to crash 100% guaranteed?
Are you allowed to mention silver. I thought MSE towers declared the asset class banned? You can talk about beans, no ones been banned for talking about baked beans as an investment choice.0 -
What makes you think I have a life?
The issue here is why some on here (maybe its just one or two people) feel so emotional about bashing silver.
Why such strong comments why the cap letters the strong emotional replies. Then on the other hand when proved wrong because the price just keeps going up every year, they just say I don`t care about silver bullion.
If you really do not care so much stay away and stop being so childish.0 -
they're bored of you having to set up so many user names to spam the boards with your silver ramping.Silvercar2 wrote: »The issue here is why some on here (maybe its just one or two people) feel so emotional about bashing silver.
Why such strong comments why the cap letters the strong emotional replies. Then on the other hand when proved wrong because the price just keeps going up every year, they just say I don`t care about silver bullion.
If you really do not care so much stay away and stop being so childish.
you'd get a bit more respect from people and they might listen to you if you stuck to just one user name.0 -
Silvercar2 wrote: »The issue here is why some on here (maybe its just one or two people) feel so emotional about bashing silver.
You need to seperate two quite distinct issues here. I personally have no problem with the concept as silver as an investment, in the same way that I have no issue with pretty much any investment. If you feel that an investment is right for you, and you obviously feel that silver is right for you, then go ahead and invest in it. I am also invested in silver.
I have an issue with the constant ramping of it on this site and, even worse, the very irresponsible and poor advice given on the savings and investment board that you and your logins give about silver (which is why I think you've been banned). It's not uncommon for people to come on that board and ask what they should do with a large amount of cash that they don't want capital risk on as they will need it for a hosue deposit in 6 months, and one of your logins will advise that they buy silver as it can't drop in value. This is terrible advice. Please understand that I'm not saying that silver won't go up over the next 6 months, because of course it might. It's just that that would be completely the wrong investment for that person as they didn't want capital risk.
So as I said, you need to stop thinking it's people 'bashing silver'. It's not silver they have a problem with, it's you and these multiple logins all acting as if you're part of some sort of silver cult. It's weird, you're offering bad advice to people and that's why you keep getting PPRed.0
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