Has The Silver Correction Bottomed?

James Turk who is the founder of GoldMoney thinks that the silver correction has bottomed.  

When asked about a bottom forming here Turk responded, “Eric you know from our previous discussion that I was looking for some more backing and filling and that is exactly what has happened over the last couple of weeks.  More importantly gold dropped back to test $1,520, while silver probed support around $35 and both support levels held.”

“The sharp rally that occurred today off of those support zones suggests to me that the correction is over.  In other words we are going to see silver back above $40 and gold above $1,550 within the next couple of weeks.  Everything is all set for new record high prices in both metals this summer, which is going to surprise a lot of people.

I just think that people don’t really understand what can happen this summer.  We’ve spoken before about the summer of 1982 when the gold price rose 50% from June to September, propelled back then by the Mexican debt default.  

There are so many potential debt defaults going on today it is hard to figure out which one will be the tipping point.  But whether it is Greece or Ireland or someone else it doesn’t really matter Eric, it will be a clear sign that today’s fragile monetary system of fiat currencies backed by nothing is imploding....

“When viewing December 2015 commitments to deliver, silver remains in backwardation and I want to let the KWN readers globally know that this physical silver market is extraordinarily tight.     

This summer you could see a move higher in gold and silver that literally shakes the world, more than it was shaken when Lehman Brothers collapsed.  

A lot of people ask if we get another Lehman style collapse, will gold and silver fall like they did in 2008?  I say no they won’t.  The reason is back in 2008 the primary driver after Lehman collapsed was a rush by investors, hedge funds and everyone else for liquidity.  Most people learned a very valuable lesson from that event.  Consequently, this time around you are not going to see a rush for liquidity, you are going to see a rush for safety.  The safest haven of them all is physical gold and physical silver.”

Consider the silver chart below.  Do you think James Turk is right?

The silver price has respected the upward trendline since the massive correction.  We are seeing higher lows.

Strong support is seen at USD33.60/oz but immediate resistance at USD38.50/oz.

So, will we see an upward breakout in price as James Turk's call?