Friday, December 30, 2016

Gold And The On Coming Price Inflation

If interest rates must rise a tad, who cares? More important for equity-driven investors is the improved outlook for corporate profits from a combination of fiscal stimulation and a business-friendly administration.

If the recent performance of equity and bond markets is any guide, this view dominates investor thinking. Since the financial crisis eight years ago, the rise in equity markets had been driven by ZIRP and the expansion of credit aimed at financial assets. Now equities are on firmer ground, but this is a view that completely ignores the monetary flows upon which asset values depend. The reason asset values are at current levels is because there has been an excess of monetary inflation over that absorbed by the non-financial economy. Furthermore, demand from non-financials has been constrained by the continuing wealth-transfer effect of monetary inflation from ordinary people, benefitting the banks and the earlier recipients of the new credit created. This devaluation of earnings and savings is under-recorded by government inflation statistics, but the large majority of people in ordinary occupations outside financial centres have been progressively impoverished, relative to the minority benefiting from the inflation of financial assets prices. No wonder the economy stagnates.

The emphasis is now due to swing from monetary towards fiscal stimulation. Instead of money being bottled up in financial assets, it will begin to flow out of them into spending and employment in non-financial sectors, as well as into government, whose budget deficit will rise. The consequences of these monetary flows cannot be emphasised enough, leading to selling of financial assets in favour of financing non-financial activities. I covered this important point in a recent article, which yielded surprisingly little comment from regular readers. That analysis postulates that despite the improved outlook for the economy, equities and residential property prices are at or close to their peak, based on monetary flows. I urge all investors to read it if they have not already.

The price inflation killjoy

The effect of redirecting monetary resources previously inflating financial assets into non-financial sectors will be to increase consumer prices. Price inflation shifts, deflating assets and inflating consumer prices, developing a momentum of its own. We have already seen significant increases in dollar prices for industrial materials and energy in 2016. To this we must add the marginal price effect of increased demand for goods and services in a capacity-constrained economy. As products become relatively scarce compared with freely available money, the underlying price dynamics will become dramatically apparent.

The effect of price inflation is not, as commonly supposed, to drive up prices. Instead, it drives down the purchasing power of expanding government-issued currency. And in addition to these supply and demand considerations, there is the added dynamic of changes in consumers’ overall desire to retain money balances, relative to owning goods. Deteriorating public confidence in money is ultimately the greatest destructive force any fiat currency faces, and is the reason unsound money eventually collapses into uselessness.

Fortunately for all governments bent on monetary debasement, the public’s understanding of money is limited to it being the objective element in any transaction, and in consequence all populations are reluctant to even consider the possibility that government-issued currency might not be worth today what it was yesterday. Awareness that money is losing purchasing power only dawns on the public late in the price-inflation process.

The dollar’s accelerating loss of purchasing power could become a significant danger in future, because the Fed is predisposed to maintain interest rates on the low side, and raising the Fed Funds Rate to only 2.5% or so could be enough to trigger a debt crisis. The Fed is tasked with preventing financial and banking crises, and protecting the dollar’s purchasing power is a secondary consideration.

And that’s the problem. Mindful of the debt overhang, unless it is prepared to collapse the economy, the Fed cannot raise rates by much, perhaps 2% from current levels at most. If inflation measured by the CPI goes to over 4%, the general level of prices will almost certainly be rising by well over 10%, because the CPI statistic is designed to under-record price inflation by a considerable margin. While the rate of price increases is stable, it has not been an issue, but if it begins to rise, markets are likely to begin discounting higher rates of price inflation and become increasingly aware that the Fed is powerless to act.

In addition to the monetary flow problem discussed above, rising interest rates will therefore become an additional negative factor bearing down on asset values. We can expect the yield curve to steepen as well, and for the long bond to head towards 5% yields and more. Equities and property prices cannot rise in this environment, and must fall.

Gold

This year, bulls of precious metals have ridden a roller-coaster of hope followed by disillusionment. Much of the frustration has been due to the bullion banks seizing the opportunity presented by a strong dollar to force closure of their short positions on Comex. Meanwhile, for hedge funds, short-term positioning in gold has been an easy way to play the strong dollar, which is why money-managers morphed from earlier bulls to a mixture of bears and don’t-knows. Next year is shaping up to be an entirely different matter.

As discussed above, the defining economic feature of 2017 is almost certain to be increasing rates of price inflation and interest rates that are unlikely to rise by enough to stop it, without triggering a debt crisis. These are precisely the conditions that will disfavour government currencies, measured in gold, and have actually been in place to a greater or lesser extent for a considerable time. The chart below shows how the four major currencies have lost purchasing power since December 1969, indexed to 100.



Since December 1969, even a strong yen has lost over 90% of its value measured in the one form of money which is no one’s liability. The worst performers have been sterling at -98.45% and the euro – including its components prior to 2002 – at -98%. What is shocking about currency debasement is so few people realise the extent to which it has happened.

Bear in mind that in a sound-money environment the general price level will tend to fall, reflecting the rising living standards resulting from economic progress. Putting short-term volatility to one side, gold is therefore a far better measure of currencies’ loss of purchasing power than government inflation measures, even if they could be truly accurate.

The 1970s was the worst decade for currency debasement, and the conditions that prevailed at that time look like being repeated now. The principal difference is there was less debt in the private sector, and it needed a large hike in interest rates to swing consumer preferences back into holding government-issued money. The next chart shows Volcker’s inflation-killing interest rate hike at the end of that decade, followed by the subsequent interest rate peaks that were required to stop credit cycles from degenerating into escalating price inflation.



The dotted line, which marks the Fed Funds Rate at the declining peaks of US credit cycles, is currently at an FFR of 2.5%, which has fallen from 5.3% in the first half of 2007, when the last financial crisis began. By the end of 2017 it will be at 2.25%. The reason the line is declining is that total debt outstanding is continuing to escalate, with a growing proportion of it unaffordable at not much above current rates. The dotted line is telling us that at anything over 2%, the FFR is likely to tip the US economy into another financial crisis.

These strains are also acute in Europe, where the banks are less adequately capitalised and face regional crises, such as the current one in Italy. Bond yields have risen in Euroland as well as in the US, and it is quite likely the Eurozone banking system will succumb before the FFR reaches 2%, because the banks face catastrophic bond losses on their under-capitalised balance sheets.

The central banker’s response to the inevitable forthcoming crisis, wherever it arises first, is certain: throw yet more money at the problem. After all, it worked following Lehman, there is no alternative solution, and the central banks’ overriding priority is to keep the show on the road.

In 2008/09, the financial crisis was initially confined to identifiable banks and institutions in the US housing market. Next time, when a financial crisis occurs, the problems will be more widespread, encompassing bond markets, property, equities and governments themselves. It will be ebola compared with a flesh wound. There will be no option other than to rapidly expand the quantity of money on a global basis, with central banks buying up government debt, ultimately fuelling price inflation even further. Therefore, physical gold will not only afford protection against the escalating price inflation that few investors are expecting, but also against the risks and consequences of global systemic failure. Such a crisis may not occur in 2017, but we can see the direction of drift.

These are not forecasts, but an expectation of how events will unfold. Anyone who makes financial and investment forecasts fails to understand the nature of money, money flows and prices. But I can come up with my current expectations for 2017, on the understanding that my expectations today will evolve as events unfold. With that caveat, the following table summarises how I currently see things developing in 2017.



It could turn out worse. The conditions faced by America today have many parallels with those faced by the UK in 1972, too many for comfort. At that time, equities peaked and subsequently fell over 70%. From equity peak to financial crisis took nineteen months and the bear market in equities lasted 31 months. The Bank of England was forced to raise its base rate from 5% to 13% by late-1973, which triggered the commercial property crisis. The effect on sterling is recorded in the first chart in this article.

Happy Christmas to one and all, and may we all survive 2017 without too much financial distress.


Friday, December 9, 2016

The Money Bubble Will Pop, Gold is Real Money


One of the biggest names in the precious metals industry is here with us to discuss many gold related topics including the sound money history, ETF Scam and today's silver shortage. Of course we drill him down to get the most important aspects of how gold & silver will affect us today.

Friday, November 25, 2016

Bullion and Beyond: A World of Choices for Gold Investors


FLASHBACK:

The AIER lecture, Bullion and Beyond: A World of Choices for Gold Investors, was given at the E.C. Harwood Library. The event included: Gregory van Kipnis, Chairman, American Investment Services, Inc.: Introductory Seminar Remarks - What about Gold During Deflation?


Wednesday, November 16, 2016

Chris Martenson and James Turk talk about Europe and the global economy


FLASHBACK: 

In this video Chris Martenson - economic analyst and author of The Crash Course and James Turk, Director of the GoldMoney Foundation talk about the problems facing the eurozone as well as the global economy. Chris Martenson points out that the whole world simply has too much debt. This is why he believes that there won't be a real solution to the euro crisis. The big question will rather be who will take losses on the debt, which can't possibly be repaid. 

The lack of political leadership and unwillingness to accept reality is contributing to this crisis. Additionally, the monetary tools central banks have traditionally used to revive economies are starting to show less and less effect. 

In Martenson's view, the financial sector has become way to large and interlinked across borders, so that a default by one country could bring down the whole financial systems, because credit default swaps would get triggered and could bring down the writers of those derivatives.


Friday, November 4, 2016

The Super Rich Get It - Moving out of Cash & Into Physical Assets


James starts out by saying that there is so much money being printed by central banks, and its got to end up somewhere, and a lot of this money is ending up in what are perceived as safe-havens. For example, London and Singaporean real-estate, artworks, collectibles, and antique automobiles.

It's what you see in the early stages of what the Austrian economists call a 'crack-up' boom, the demand for the currency declines, and people move into things and out of the currency. I think the super rich get it, they're moving out of currencies because they aren't earning enough interest income, and safe-havens of all sorts are benefitting.

Speaking on the gold price, James' guess would be that the gold price will rebound quickly. Simply for the reason that gold has had so much downwards pressure, and that gold has been so undervalued. The recent downturn could be a short-squeeze, and if it is, then we could see a 'rubber band' effect in the price.

Next, James talks about the money bubble. People have generally lost sight of what money is, and the paper that's circulating as national currencies is not really money since it doesn't settle an obligation. If a shop receives a tangible asset (gold/silver) for the good of service that he's is giving in return, he has no lingering obligation or risk afterwards.

A currency presents payment risk, inflation risk, and bank risks. People are accepting those risks without realizing how severe those risks are. The risks of holding money in a bank today is quite large, the risks of inflation are large, and the risks of various promises being broken by governments are also quite large.

When asked on the future of currencies, and a possible gold back Russian/Chinese currency, James states that we can't predict the future, but he hopes that private currencies become dominant. What we're seeing with Bitcoin and other crypto currencies represent an important technological breakthrough, but at the end of the day, he sees gold emerging as the form of money, which it has always been throughout history.


Friday, October 28, 2016

Could Gold Reach $12,000 Per Ounce?

The numerous complexities of the gold market often make it difficult for investors to see a clear trend in prices and market activity. However, it is important to not miss the forest for the trees when grappling with those many indicators.

When it comes to commodities, there are a few basics that will always dominate the direction of prices. The balance between supply and demand is the most fundamental of those factors, and it is essential to understand that relationship, especially for long-term buyers of gold and other precious metals.

A Finite Supply and Increasing Demand

It is one of nature’s more astonishing facts that all the gold ever mined and produced would easily fit into a cube of just 67 square feet (20 square meters)—slightly bigger than an Olympic pool. 1 Even more interesting is that more than 80 percent of the above-surface gold has been mined since the 1850s, in spite of its historical role as one of our most prized resources.

In other words, if not for dramatically greater production of the valued yellow metal over the past 15 or 16 decades, the demand for gold would greatly exceed the supply. This is especially the case since there are so many new and vital uses of gold. Gold is valued as unequalled material for jewelry and storing wealth, but is beginning to be used for so much more.

Demand for Gold in Medicine and Technology



Today, one of the rarest metals on earth (composing roughly only 0.003 parts per million of the crust of the earth), gold is being utilized in a broad number ofmedical, industrial, and technological applications. From providing microscopic connections in tiny electronics to nanoparticles in medical testing devices, science continues to find new ways to put gold to use. Moreover, the unique characteristics of this metal make it irreplaceable in many of these applications.2

Political and Economic Factors Increase Demand



These new uses are, in fact, only a part of the reason gold consumption is hitting record highs. Other pressure points on the demand side of the gold equation include:
Increased buying and decreased selling of gold by central banks around the globe, especially in China and Russia.
Steadily growing culturally driven purchases in countries like China and India from a growing and newly prosperous middle and upper class.

Significantly increasing interest in physical gold for investment from buyers and investors, ranging from hedge funds to individuals.

The combined effect of these and other areas of demand drove the investment demand for gold to 1064 tons in H1 2016, the highest level since 917 tons in the same period in 2009. 3 The net effect of this global consumption of gold is underpinning a steady increase in the price of gold.

While demand is being driven by an increasingly dark global economic scenario, many analysts and serious investors in gold are taking note of the growing role of supply as a factor.

The Limits to Mining?

Heavy investment and technology has provided the world a century of increased production of gold, with new production and new demand roughly matching over the period. However, many are concerned that the ability to affordably produce new supplies of gold may be severely limited.

One of the more pessimistic analysts resides at no less an authority than Goldman Sachs. Eugene King, an analyst at the firm, recently stated, “we have only 20 years of known mineable reserves of gold.” 4 Additionally, even if new reserves were found, the costs of production would undoubtedly exceed the current market prices of the commodity.

Outrageous or Not? Gold Could Reach $12,000 Per Ounce

Understanding and extrapolating the impact of these supply and demand realities on the market price of gold, some analysts are predicting gold prices per ounce as high as $10,000 (Jim Rickards) to $12,000 (James Turk). 5 Of course, this predication takes a long view and accounts for many different factors, but considering the long-term trends of gold demand and the finite supply of the yellow metal available in total, it’s not outside the realm of imagination for the price of gold to hit never-before-seen highs in decades to come. Whether or not these forecasts prove true or not, the natural and immutable impact of supply versus demand continues to exert very bullish long-term pressure on the market for gold.

- Source, Steve Hunt via Smarter Analyst

Saturday, October 15, 2016

James Turk: Silver Will Ultimately Take Out $50 High


James Turk goes on air to take explain his stance on the silver bull market. He see's silver smashing through its old highs and going much much higher. The question is, when will this occur?


Tuesday, October 11, 2016

U.S. Economy and Gold Standards - Max Keiser & James Turk


U.S. Economy and Gold Standards - Max Keiser & James Turk
Max interviews James Turk of Goldmoney.com about the basket of deplorables that is the US economy. They also discuss gold standards and Special Drawing Rights.


Saturday, October 1, 2016

The ECB is Out of Control - All Checks and Balances Have Failed the System


Prof. Markus C. Kerber, Professor at TU Berlin, and James Turk, Director of the GoldMoney Foundation, talk about the European rescue fund. Prof. Kerber explains that the fund is in violation of the monetary union treaty. He talks about the current expansion and expected future expansions of the fund.

They talk about the rogue behaviour of the ECB. Prof. Kerber explains that the central bank's quantitative and qualitative easing is beyond its authority and against the spirit and letter of the treaties that created it. It has created a discriminatory credit market, is engaging in fiscal policy and creates market instability. He comments on the legal action currently ongoing in Luxembourg to bring the ECB to account and condemn its out of bounds behaviour.

Prof. Kerber explains that the system of checks and balances is broken down when it comes to the ECB and tells of the public outcry in Germany when the Bundesbank tried to sell its gold.

He talks about the very strong discussions over whether to let Greece exit the euro. The position that no country would be allowed to fail set the stage for all the further bailouts.

He comments on the German rejection of the French attitude that the euro is a political project and that price is no object. He talks about the danger of Germany losing its creditworthiness.


Wednesday, September 28, 2016

Can Bitgold Inc Help Restore an Honest Monetary System?


Roy Sebag, CEO of Bitgold, and James Turk of GoldMoney explain how you can profit from the merger of GoldMoney into the crypto world of Bitgold. Turk has sought to use technology to enable people to use gold as money once again. His belief that Roy's BitGold holds the answer led him to merge GoldMoney into Bitgold, which company’s shares now trade publicly in Canada and soon in the U.S.

Saturday, September 24, 2016

When You Own Gold You Own Money


James Turk joins the Daily Coin where he talks about the values of owning gold in your portfolio. Gold is money, that is what you must know. The current system we are under is a farce and a Ponzi hoisted on the public. The banking cabal controls the system, but gold will eventually break free!


Tuesday, September 20, 2016

James Turk: The Money Bubble & Coming Crash


James Turk is interviewed, where he discusses the ongoing money bubble that is afflicting the markets. We are living in a giant ponzi scheme and it is only a matter of time before this bubble pops. Another crash of epic proportions is on the way, that will send precious metals soaring!


Saturday, September 17, 2016

Paper Assets Evaporate in 2016 Leave Gold & Silver Standing


Precious metals expert James Turk says that things may get so bad that not losing will be winning. Turk explains, “In the environment that we are in, if we come out on the other side of the valley in terms of our wealth as when we went into this period, we are going to be doing very, very well. I would expect a lot of wealth destruction. At the end of the day, the houses are still going to be there. The farmland is still going to be there. The timberland is still going to be there. The oil wells are still going to be there. The bars of gold and silver are still going to be there. It’s the paper assets that are going to evaporate, and I think paper currency power is going to evaporate along with those paper assets.”

Join Greg Hunter as he goes One-on-One with James Turk, founder of GoldMoney.com.


Wednesday, September 14, 2016

You don't invest in gold, gold is money


James Turk, globally recognized expert on precious metals, joins the Boom and Bust show on Bloomberg TV Bulgaria to discuss a wide range of investment topics - monetary policy, the new reality of negative nominal yields, investment strategies for wealth preservation, what to consider when investing in gold and how to prepare for turbulent times.


Friday, September 2, 2016

Last Known Gold Deposit? Massive Inflows Continue into Gold Funds

Gold is one of the rarest elements in the world, making up roughly 0.003 parts per million of the earth's crust.

For some perspective, one part per million, when converted into time, is equivalent to one minute in two years. Gold is even rarer than that. If we took all the gold ever mined-all 186,000 tonnes, from the bullion at Fort Knox to India's bridal jewelry to King Tut's burial mask-and melted it down to a 20.5 meter-sided cube, it would fit snugly within the confines of an Olympic-size swimming pool.

The yellow metal's rarity, of course, is one of the main reasons why it's so highly valued across the globe and, for most of recorded history, recognized and used as currency. Unlike fiat money, of which we can always print more, there's only so much recoverable gold in the world. And despite the best efforts of alchemists, we can't recreate its unique chemistry in a lab. The only way for us to acquire more is to dig.

But for how much longer?

Goldman Sachs analyst Eugene King took a stab at answering this question last year, estimating we have only "20 years of known mineable reserves of gold."

The operative word here is "known." If King's projection turns out to be accurate, and the last "known" gold nugget is exhumed from the earth in 2035, that won't necessarily spell the end of gold mining. Exploration will surely continue as it always has-though at a much higher cost.

(In fact, our insatiable pursuit of gold might one day soon take us to space, as President Barack Obama signed legislation in November that permits commercial mineral extraction on asteroids and the moon. Many near-Earth asteroids are said to contain trillions of dollars' worth of precious metals and other minerals. But that's a discussion for another time.)

We'll probably see a surge in mergers and acquisitions, as I told Kitco News' Daniela Cambone last week. I think that as long as they have reliable output, mid-cap companies could be gobbled up by the Barricks and Newmonts of the world.

Another consequence of recovering the last known nugget? The gold price could spike dramatically to levels only imagined. My colleague Jim Rickards, in his book "The New Case for Gold," puts it at $10,000 an ounce. GoldMoney founder James Turk says it's closer to $12,000. There's really no way of knowing how high gold could go.


Tuesday, August 30, 2016

Inflate or Die, the Financial Elite Have No Choice


James Turk explains how people are losing sight of what real money is. The fiat Ponzi scheme that we now find ourselves in is a farce, gold and silver are the only real honest money. He goes on to explain how key countries are accumulating gold, such as China. Will these be the financial powerhouses of the future in the coming collapse? Watch the video to learn more.


Saturday, August 27, 2016

The Crack Up Boom Has Started


Are we currently in a political currency war? James Turk believes that we are and explains how this battle is being actively fought behind the scenes, unknown to many in the world. The elite are playing a dangerous game. Interest rates are being manipulated by countries around the world. John Rubino and James Turk discuss at length.




Tuesday, August 23, 2016

Silver Will Ultimately Take Out $50 High, That’s When the Real Bull Market Begins!


James Turk discusses the results of the recent Brexit vote and how they are going to affect the economy going forward. He see's the resumption of the precious metals bull market and states that silver is going to take out its $50.00 high. Then, and only then will the real bull market begin.


Saturday, August 20, 2016

The Money Bubble & Coming Crash


Gold always has been and always will be money. It is the only true, honest money that we have seen throughout our history. Are you participating in the fiat money bubble, or are you acting now and protecting yourself for the coming crash? James Turk discusses the value of gold in our turbulent times.


Wednesday, August 17, 2016

The Money Bubble Will Pop, Gold is Real Money


James Turk talks about the true value of gold and why it is sound money. It is NOT just a commodity, it is so much more. The fiat money bubble is going to pop and one of the only safe havens will be precious metals. Are you prepared?


Thursday, July 14, 2016

Paper Assets Evaporate in 2016 Leave Gold & Silver Standing


Precious metals expert James Turk says that things may get so bad that not losing will be winning. Turk explains, “In the environment that we are in, if we come out on the other side of the valley in terms of our wealth as when we went into this period, we are going to be doing very, very well. 

I would expect a lot of wealth destruction. At the end of the day, the houses are still going to be there. The farmland is still going to be there. 

The timberland is still going to be there. The oil wells are still going to be there. The bars of gold and silver are still going to be there. It’s the paper assets that are going to evaporate, and I think paper currency power is going to evaporate along with those paper assets.”

- Source, USA Watchdog

Saturday, June 4, 2016

GoldMoney Inc TSX Opening & Pre-Opening Speech


Exciting day for GoldMoney Inc and BitGold customers: GoldMoney executives rang in the market open of the Toronto Stock Exchange this morning, to celebrate the company's graduation onto the TSX main trading board (the company was previously classified as TSX Venture). Seen behind the opening desk are BitGold CFO Katie Sokalsky, BitGold CEO Darrell MacMullin, GoldMoney Chief Strategy Officer / BitGold Co-Founder Josh Crumb, GoldMoney CEO Roy Sebag, and GoldMoney Founder & Director James Turk.


Wednesday, June 1, 2016

GoldMoney Roundtable: History of Banking & Gold Bullion As Currency | Part 2


In Part 2 of the GoldMoney Inc roundtable recorded in Toronto, our panel discusses the history of other items of value—such as salt—and how they fare compared to gold over time. The history and evolution of the banking system is also explored in depth in this lively chat. Participating in the discussion, from left to right: Alasdair Macleod, Roy Sebag, James Turk, Josh Crumb, and Stefan Wieler.


Monday, May 30, 2016

GoldMoney Roundtable: History And Importance of Gold | Part 1


Gold Bullion is the world's oldest asset class and the century's best performing currency. In this brand new GoldMoney Inc roundtable recorded in Toronto, top executives from the company explore the history of gold as currency and how the banking system evolved over time. Participating in the discussion, from left to right: Alasdair Macleod, Roy Sebag, James Turk, Josh Crumb, and Stefan Wieler.


Tuesday, May 24, 2016

You don't invest in gold, gold is money


James Turk, globally recognized expert on precious metals, joins the Boom and Bust show on Bloomberg TV Bulgaria to discuss a wide range of investment topics - monetary policy, the new reality of negative nominal yields, investment strategies for wealth preservation, what to consider when investing in gold and how to prepare for turbulent times.


Tuesday, May 10, 2016

We're Living Within A Money Bubble of Epic Proportion


James Turk believes the time we live in now will be studied by future historians for generations to come. Just as we today marvel at the collective madness that resulted in the South Sea and Dutch tulip manias, our age will be known as the era when society lost sight of what money really is.

And as result, the wrong kinds of wealth -- today, that's mostly financial assets -- are valued and pursued. And just like those bubbles from centuries ago, when the current asset boom goes bust, the value of paper wealth will vaporize.

In contrast, those holding tangible productive assets or real money will fare much better on a relative basis.

James and co-author John Rubino (of DollarCollapse.com) have recently published a new book covering the details of this prediction called The Money Bubble: What To Do Before It Pops. Within it, they delve into the reasons for why the world is destined for what Ludwig von Mises termed a "crack up boom".


Friday, May 6, 2016

Money Bubble About to Pop


Gold expert James Turk thinks the biggest bubble of all is long past its expiration date. Turk thinks this bubble will end like all bubbles. Turk predicts, “This money bubble is going to pop. It has to because there is just too much debt in the world. That debt has to be reconciled and, ultimately, when you are reconciling debt, it gets back to the point about collateral on the balance sheets. There is just not enough good collateral to support all of this paper money circulating out there.”

Turk also says there is way too many paper promises for the actual physical gold that can be delivered. So, in the future, Turk says, “I see a lot of these promises to deliver gold being broken and, ultimately, the only way you are going to see this being resolved is with a much higher gold price.” How high? Turk estimates, “You’ve got to be looking back to the all-time highs of $1,900 or $2,000 per ounce. We are eventually going to take those out. It’s just a question of when we do it. It’s obvious it is going to happen because gold has been money for 5,000 years and, ultimately, people will come back to gold when they realize that all these promises of bankers and central bankers really cannot be fulfilled. So, it is just a question of when that reconciliation comes. In March of 1968, the dam broke and the gold price was released and the gold price climbed for another 12 years. When the gold price finally gets released this time around, it’s going to climb for many, many more years. It’s hard to say how high it can go, but relative to the amount of paper that’s out there . . . a price several times higher than what we have today seems very, very reasonable in the long run.”


Saturday, April 30, 2016

Gold to $11,000 - We Are in a Fiat Currency Bubble


James Turk of GoldMoney.com predicts gold will reach "$11,000" per ounce in the next five years. Turk goes on to say, "It might come sooner. It depends on when confidence finally breaks, and we're getting very, very close to that stage. There's nothing holding the dollar together but confidence." Join Greg Hunter as he goes One-on-One with James Turk.


Tuesday, April 19, 2016

James Turk- gold $8000 and silver $400 very soon


James Turk- $8000 gold price and $400 Silver price is very possible. Interview by SGTbull07.

Is this price range still valid today? Or is the gold and silver correction of 2013 too major.

The other commodity prices also declined in april. But as we can see now the major record breaking gold buying from China. Depleting stockpiles which leads to longer waiting for your orders.


Saturday, April 16, 2016

2016 Outlook & Roundtable Discussion - James Turk, Alasdair Macleod, John Butler


GoldMoney® Founder James Turk, GoldMoney® Research Head Alasdair Macleod, and GoldMoney® Wealth Services President John Butler discuss recent events in the global economy and their outlook for 2016.

GoldMoney® is the world's most trusted precious metals custodian and investment firm. Since 2001, we have been serving individuals, families, and corporations with physical access to gold, silver, platinum, and palladium for investment and long-term wealth protection. We provide the best way to invest and trade allocated precious metals online and ensure secure storage in specialised vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom.


Wednesday, March 16, 2016

James Turk: GoldMoney, Bitgold, Bitcoin, Precious Metals, China, Greece


Jeff interviews James Turk, topics include: Bitgold acquires GoldMoney.com, creates Gold Money Group, international precious metal vaults, digital gold for payments, cryptocurrencies, bypassing capital control, getting assets out before financial collapse, the situation in Greece, gold as sound money, the demise of fiat currency, gold and silver price, huge demand for silver bullion, gold and silver in backwardation, Citigroup derivatives exposure, Bitcoin and the Greek situation, un-safe deposit boxes, GoldMoney.com, Chinese stock market crash presaged the crash of 2008, Government intervention in markets, financial moves made for political reasons often unsound, Greece vs the Eurozone, financial contagion, staggering un-payable debt globally, the collapse of socialism, the trouble with socialism is you eventually run out of other people's money, the issue of debt is not solved by issuing more debt, total government debt has more than doubled worldwide since 2008, hang on to your gold and silver!


Friday, March 11, 2016

The Money Bubble is About to Pop!


Gold expert James Turk thinks the biggest bubble of all is long past its expiration date. Turk thinks this bubble will end like all bubbles. Turk predicts, “This money bubble is going to pop. It has to because there is just too much debt in the world. That debt has to be reconciled and, ultimately, when you are reconciling debt, it gets back to the point about collateral on the balance sheets. There is just not enough good collateral to support all of this paper money circulating out there.”

Turk also says there is way too many paper promises for the actual physical gold that can be delivered. So, in the future, Turk says, “I see a lot of these promises to deliver gold being broken and, ultimately, the only way you are going to see this being resolved is with a much higher gold price.” How high? Turk estimates, “You’ve got to be looking back to the all-time highs of $1,900 or $2,000 per ounce. We are eventually going to take those out. It’s just a question of when we do it. It’s obvious it is going to happen because gold has been money for 5,000 years and, ultimately, people will come back to gold when they realize that all these promises of bankers and central bankers really cannot be fulfilled. So, it is just a question of when that reconciliation comes. In March of 1968, the dam broke and the gold price was released and the gold price climbed for another 12 years. When the gold price finally gets released this time around, it’s going to climb for many, many more years. It’s hard to say how high it can go, but relative to the amount of paper that’s out there . . . a price several times higher than what we have today seems very, very reasonable in the long run.”


- Source, USA Watchdog

Tuesday, March 1, 2016

Paper Assets Will Evaporate in 2016 Leaving Gold & Silver Standing


Precious metals expert James Turk says that things may get so bad that not losing will be winning. Turk explains, “In the environment that we are in, if we come out on the other side of the valley in terms of our wealth as when we went into this period, we are going to be doing very, very well. I would expect a lot of wealth destruction. At the end of the day, the houses are still going to be there. The farmland is still going to be there. The timberland is still going to be there. The oil wells are still going to be there. The bars of gold and silver are still going to be there. It’s the paper assets that are going to evaporate, and I think paper currency power is going to evaporate along with those paper assets.”

- Source USA Watchdog

Saturday, February 20, 2016

Inevitable Collapse Of The Dollar


The dollar collapse will be the single largest event in human history. This will be the first event that will touch every single living person in the world. All human activity is controlled by money. Our wealth,our work,our food,our government,even our relationships are affected by money.


Friday, February 5, 2016

2016 Gold and Silver Impact Outlook


James Turk, Alasdair Macleod and John Butler form a precious metals and global outlook roundtable. They give us their opinions on what they envision happening in 2016 for precious metals, the world and beyond.


Saturday, January 9, 2016

Hyperinflation and the Destruction of the US Dollar

In short, higher interest rates are the path to hyperinflation and the destruction of the dollar. Fed officials undoubtedly understand this. So do not be surprised if the Fed leaves interest rates unchanged. But if the Fed does hike rates, expect its announcement to be extremely dovish.

The Fed might leave the lower range of the federal funds rate unchanged at 0, increasing only the top range to half a percent. In addition, there will be a lot of post-announcement dovish speak to try to talk the stock market higher.

- Source James Turk via KWN

Monday, January 4, 2016

Why The FED Should Not Raise Rates Further

When it comes to credit, they are called “junk bonds” for a reason. These are bonds of companies that rest on a knife-edge between solvency and bankruptcy. The slightest hiccup can create a disaster for these companies, so oil companies that borrowed excessively thinking that crude oil prices would never fall below $60 a barrel are suffering the consequences.

What is worse is that credit deterioration is seeping into the banking system. Today Wells Fargo Bank said that “stresses” are building in its portfolio of loans to energy companies because of the drop in the price of oil, which is another reason the Fed may choose to avoid hiking rates.

The best reason for the Fed not to raise rates is the U.S. government’s own debt load. This is why I have been saying for years that rates will never go up. The U.S. government has so much debt it cannot afford to pay a fair rate of interest.

- Source, James Turk via King World News