Expert Tom Fitzpatrick believes that silver will quickly advance 23% higher than current levels. He also expects massive movements in gold and crude oil that will stun market participants. Fitzpatrick believes gold will outperform all paper currencies in the developed world.
Eric King
August 24, 2012
King World News
Today Tom Fitzpatrick told King World News that silver will quickly advance 23%, or $7 higher than current levels. Fitzpatrick also expects massive moves in gold and crude oil that will stun market participants.
Here is what top Citi analyst Fitzpatrick had to say, along with some powerful charts: “We remain bullish on the gold price. Most importantly, this is a bullish gold view, not a gold/dollar view. So while the gold/dollar chart now looks strong, and momentum is picking up, we believe gold will outperform all paper currencies in the developed world. This is because there is so much money printing taking place, particularly in the West.
But we believe over the next 12 to 18 months that we are going to see the the euro significantly lower vs the dollar. Ultimately we see the euro below parity with the dollar, and maybe as low as 90 cents. So over that 12 to 18 month period, we not only see gold performing well vs the dollar, but we see gold significantly outperforming the euro.
In fact, gold may perform 20% to 25% better against the euro vs the dollar. It is also worth noting that gold is only 3% off the all-time highs in euro terms. 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.”
Fitzpatrick also added: “The entire backdrop from 1973 to 1975 is very interesting. At that time we saw the downturn in the equity market, the economy, and housing, along with the surge in the oil price and corresponding move higher in soft commodities. We saw a settling down until 1978/1979, then we got that second surge, which ultimately yielded the stagflationary dynamic in the US.
We replicated a lot of that in the 2007 and 2008 time period. Now we are seeing a surge in soft commodities once again, and that’s exactly what happened back in 1978/1979 time period. So we’re convinced there is more upside to come. We expect new all-time highs in Brent Crude. We believe we will see a surge to the $160 level on Brent, and if we replicate the move in 2007/2008, that would target $190 for Brent.
So we expect to see significantly higher prices in crude oil. A continued move higher in food and energy, exacerbated by money printing, can only be construed as extremely negative for the global economy going forward.”
From Tom Fitzpatrick’s latest report:
“Gold has taken out the top of the range at $1,641 on a close basis and is now testing the trend line that comes down from the highs at $1,661. A weekly close above this trend line would confirm what is looking like a bullish break and open the way for a test of the double (or triple) bottom neckline at $1,790-$1,802.
From a longer term perspective the $1,790-$1,802 levels are key. A weekly close above that would argue for new trend highs and a move to $2,040.
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