Tuesday, March 21, 2017

The Case for Owning Precious Metals is Stronger than Ever

Right now real interest rates are negative most everywhere. When depositing money in banks, you have less purchasing power at the end of a year. The minimal interest income you earn is not enough to offset the loss of purchasing power arising from inflation. While the Fed is giving the appearance that it is fighting inflation, the ECB, in contrast, is continuing to strive for more inflation. And there is no doubt in my mind that they will get it.

Central banks are not protecting the purchasing power of currency. They are all well behind the curve, with the result that inflation will continue to worsen as this year progresses. So notwithstanding what happened the last nine days, the case for owning physical gold and silver remains strong.

- Source, James Turk via KWN

Saturday, March 18, 2017

James Turk - Inflation is Rising All Around the World

Once the uptrend line going back to the December lows was broken, the selling in both precious metals was relentless. After declines like these, one would normally expect prices to bounce, and we got that today. But it wasn’t spectacular. I think today’s lackluster bounce occurred because of a big distraction. It seems most everyone is talking about what the Fed might do on Wednesday. But I find that to be somewhat surprising.

A small jump in interest rates seems to have been very well telegraphed by Fed officials over the last few weeks. So I expect that the Federal Reserve is going to announce it will raise interest rates by 0.25%. That also seems to be the consensus expectation. So what are the odds that the Fed will surprise the markets by doing something different? It is always a possibility, but the odds are low.

The Fed has often said that it doesn’t like to surprise the markets. Further, all their statements recently indicate that a rate hike is in the cards. So doing nothing or raising rates more than 0.25% is a low probability. The important point of all of this is that the Fed is a distraction. The steps it is taking and its announcements are designed to give an impression that the Fed is in control and knows what it is doing.

But inflation is rising, and not only in the US. It is global. Europe recently has been reporting some of the highest inflation numbers in years. When it comes to central banks, whether the Fed, European Central Bank or any other, the important point is real interest rates. In other words, real interest rates are how much interest income can you earn after accounting for the loss in purchasing power from inflation?

- Source, James Turk via King World News

Wednesday, March 15, 2017

What Is Happening In The Gold & Silver Markets Right Now Is Extremely Rare

“The Comex spot gold contract closed lower nine days in a row coming into trading today, Eric. That kind of selling pressure resulting in a consecutive 9-day unbroken string of down days is rare…

The net result is that gold was down 4.5% over this period. But fortunately, support at the $1,200 area has held, at last so far.

The selling pressure on silver has also been severe. Even though it closed lower on only six of those nine days, over this period it was down 8%. Silver is now trying to hold support at the $17 level, which is being severely tested."

- Source, James Turk via King World News

Wednesday, March 1, 2017

Gerald Celente - Polls: The People Want Peace, The Government Wants War!


Gerald Celente breaks down the current zeitgeist of America and how the left and the right are more divided than ever. The government wants war, while the average person just wants prosperity and peace. 

Can real change ever happen, or are stuck in another loop of insanity? Gerald breaks it all down.

- Source

Saturday, February 25, 2017

Gold & Silver Will Skyrocket On A Short Squeeze

That will happen when central banks lose control of the gold market and their price capping efforts fail. It will lead to a short squeeze with precious metal prices taking off like a rocket. Will that happen this month? Probably not. But will it happen this year? I think that outcome is a high probability. It will result from the growing realization around the world of two things: First, physical metal is fundamentally different from owning an option or any other piece of paper purporting to represent gold. Second, the reasons for owning gold are becoming increasingly obvious because of currency volatility, rising inflation and the huge mountain of debt overhanging the global economy.

What all of this means, Eric, is that central bank capping of the gold price is nearing its end, which is the inevitable outcome of any price capping scheme because markets in the final analysis are bigger and more powerful than central banks. So let’s watch carefully here to see how this week plays out for the precious metals, and whether the historical pattern of declining precious metal prices during option expiry is finally reversed.”

- Source, James Turk via King World News

Monday, February 20, 2017

Today's System is the Exact Opposite of the Classical Gold Standard

What I am describing of course is a rigged system, and one that is perpetuated by central banks. Today’s rigged system is the exact opposite of what existed under under the classical Gold Standard. When Sir Isaac Newton invented the classical Gold Standard circa 1700, he established a basic rule for the Bank of England to follow, which was adopted by other central banks. By the end of the 19th century, the British Empire and the gold-backed British pound dominated commerce, but the several other central banks that existed at the time eventually accepted the Gold Standard and followed the rule. The United States did not have a central bank then, but the individual banks that issued dollar currency also followed Newton’s rule.

Because the purchasing power of gold remains essentially unchanged over long periods of time, Newton’s basic rule was straightforward and simple to follow. To maintain adherence to the Gold Standard, the central bank was tasked with managing the quantity and quality of the currency it issued so that the currency would circulate on par with gold. This objective gave substance to the slogan – abandoned in the 1960s when it no longer reflected the truth – that the dollar was as good as gold. They were considered to be equivalent, with the dollar and other national currencies deemed to be a money-substitute circulating in place of gold.

Beginning in the 20th century and particularly accelerating in the 1930s, central banks turned Newton’s rule on its head. Central banks started manipulating gold in a vain attempt to keep it equal to the diminishing purchasing power of the national currency they were managing. It was and still is a futile effort. The facts speak for themselves. Even though gold was supposedly “demonetised”, it still holds value. Gold is trading above $1,200 per ounce, not the $35 per ounce rate at which dollars could be redeemed for gold when President Nixon ended the last remnants of the Gold Standard in 1971.

This reality proves the point that we don’t need central banks to ‘manage’ our currency. The fact that gold preserves purchasing power over long periods of time even though it was”demonetized” proves that gold doesn’t need management. As I often say, central banking is the barbarous relic.

So based on past experience, we can expect downward pressure on precious metal prices for the rest of this week, with the low likely to occur Thursday morning US time when Comex options go off the board. But it is always important to watch how option expiry unfolds because one of these months – and it may be this month – option expiry will not follow historical patterns.

- Source, James Turk via King World News

Thursday, February 16, 2017

James Turk On Short Term Trading And The Reason Gold & Silver Prices Are Going To Skyrocket

This is option expiry week, Eric. As you and I have often discussed in the past, we know what to expect. Even though gold and silver started the week with strength, it is likely that their prices will now be capped, with some selling pressure as we approach option expiry…

Comex options expire on Thursday. Options in the larger Over-the-Counter market start expiring the same day, with their expiry continuing to the end of the month. From past experience we know that prices of gold and silver are weak when options expire. This recurring outcome is just one visible facet of the ongoing manipulation of precious metal prices. Another example is gold for February delivery being backdated to today’s spot price.

The objective of the option writers is to push prices as low as they can so that as many call options as possible expire out of the money. Meaning they end up worthless. In this way the option writer earns the full premium, and more importantly, does not have to deliver physical metal for those options that still offer settlement with metal instead of cash settlement. The current backwardation shows that available physical metal is in tight supply.

- James Turk via King World News, read more here

Sunday, January 29, 2017

Gold & Silver Will Skyrocket On A Short Squeeze

That will happen when central banks lose control of the gold market and their price capping efforts fail. It will lead to a short squeeze with precious metal prices taking off like a rocket. Will that happen this month? Probably not. But will it happen this year? I think that outcome is a high probability. It will result from the growing realization around the world of two things: First, physical metal is fundamentally different from owning an option or any other piece of paper purporting to represent gold. Second, the reasons for owning gold are becoming increasingly obvious because of currency volatility, rising inflation and the huge mountain of debt overhanging the global economy.

What all of this means, Eric, is that central bank capping of the gold price is nearing its end, which is the inevitable outcome of any price capping scheme because markets in the final analysis are bigger and more powerful than central banks. So let’s watch carefully here to see how this week plays out for the precious metals, and whether the historical pattern of declining precious metal prices during option expiry is finally reversed.”

- Source, King World News

Thursday, January 26, 2017

James Turk On Short Term Trading And The Reason Gold & Silver Prices Are Going To Skyrocket

Today James Turk spoke with King World News about short-term trading, and the reason gold and silver prices are going to skyrocket.

James Turk: “This is option expiry week, Eric. As you and I have often discussed in the past, we know what to expect. Even though gold and silver started the week with strength, it is likely that their prices will now be capped, with some selling pressure as we approach option expiry…

Comex options expire on Thursday. Options in the larger Over-the-Counter market start expiring the same day, with their expiry continuing to the end of the month. From past experience we know that prices of gold and silver are weak when options expire. This recurring outcome is just one visible facet of the ongoing manipulation of precious metal prices. Another example is gold for February delivery being backdated to today’s spot price.

The objective of the option writers is to push prices as low as they can so that as many call options as possible expire out of the money. Meaning they end up worthless. In this way the option writer earns the full premium, and more importantly, does not have to deliver physical metal for those options that still offer settlement with metal instead of cash settlement. The current backwardation shows that available physical metal is in tight supply.

What I am describing of course is a rigged system, and one that is perpetuated by central banks. Today’s rigged system is the exact opposite of what existed under under the classical Gold Standard. When Sir Isaac Newton invented the classical Gold Standard circa 1700, he established a basic rule for the Bank of England to follow, which was adopted by other central banks. By the end of the 19th century, the British Empire and the gold-backed British pound dominated commerce, but the several other central banks that existed at the time eventually accepted the Gold Standard and followed the rule. The United States did not have a central bank then, but the individual banks that issued dollar currency also followed Newton’s rule.

Because the purchasing power of gold remains essentially unchanged over long periods of time, Newton’s basic rule was straightforward and simple to follow. To maintain adherence to the Gold Standard, the central bank was tasked with managing the quantity and quality of the currency it issued so that the currency would circulate on par with gold. This objective gave substance to the slogan – abandoned in the 1960s when it no longer reflected the truth – that the dollar was as good as gold. They were considered to be equivalent, with the dollar and other national currencies deemed to be a money-substitute circulating in place of gold.

Beginning in the 20th century and particularly accelerating in the 1930s, central banks turned Newton’s rule on its head. Central banks started manipulating gold in a vain attempt to keep it equal to the diminishing purchasing power of the national currency they were managing. It was and still is a futile effort. The facts speak for themselves. Even though gold was supposedly “demonetised”, it still holds value. Gold is trading above $1,200 per ounce, not the $35 per ounce rate at which dollars could be redeemed for gold when President Nixon ended the last remnants of the Gold Standard in 1971.

This reality proves the point that we don’t need central banks to ‘manage’ our currency. The fact that gold preserves purchasing power over long periods of time even though it was”demonetized” proves that gold doesn’t need management. As I often say, central banking is the barbarous relic.

So based on past experience, we can expect downward pressure on precious metal prices for the rest of this week, with the low likely to occur Thursday morning US time when Comex options go off the board. But it is always important to watch how option expiry unfolds because one of these months – and it may be this month – option expiry will not follow historical patterns.

- Source, King World News, Read More Here

Friday, January 20, 2017

Two Precious Metal Titans - Jim Sinclair interviewed by James Turk


James Turk, Director of The GoldMoney Foundation, talks to Jim Sinclair, about his successful gold price predictions, US debt problems, how to ride the trend and the second phase of the gold bull. It's a gear change from arithmetic to exponential growth as public perceptions about the safety of the US dollar changes. The debt ceiling debate is a wake up call for people all over the world.


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