Wednesday, October 22, 2014

Tangible Assets Will Continue to Produce Wealth

During periods of financial uncertainty you want to own tangible assets of all sorts. You don’t want to own promises. You don’t want to own financial assets. And, by tangible assets I mean not only physical gold or physical silver but things like farmland, buildings, timberland, things that have productive assets. And, regardless what happens to the monetary system, these tangible assets will continue to produce wealth and I think that’s the key.

An ounce of gold today buys the same amount of crude oil it did 60 years ago – that’s one of the keys to having a successful sound money. And, for the foreseeable future gold is going to continue to preserve purchasing power. There will be fluctuations from time to time in gold’s price, but gold will preserve purchasing power over long periods of time and that’s why I highly recommend it.

- Source, James Turk via FinNews

Sunday, October 19, 2014

Money is Gold and Silver, Not Fiat Paper

People think that what we are using today as currency is money, but it’s really just a money substitute circulating in place of money. Money is a tangible asset. Money is gold and money is silver. That’s the way it’s been for 5,000 years. The bubble has risen because we think that this paper really is a settlement, something that can be used in transactions. But, it’s just a convenience, it really isn’t money in a historical sense.

It’s hard to predict exactly when this is going happen. I actually thought 2008, when we saw the collapse of Lehman Brothers and all the problems there that the money bubble was going to pop, but here we are six years later. But, we’re basically in a financial system that is unsustainable. There is too much debt and not enough wealth being created to carry and service that debt. So, my guess is that, in the next year or two we are going to face some very difficult financial situations, not unlike 2008, perhaps even worse.

- Source, James Turk via FinNews

Gold Could be $2000 an Oz in the Not Too Distant Future

Gold has been around for 5,000 years. It’s money that doesn’t have any counterparty risk, in other words, there is no one promising the value of gold except the market itself. The market accepts gold for what it is. And, it is an important diversifier in everyone’s portfolio. So, I think everyone should own some physical metal.

I think gold is cheap. Even though $US1,200 per ounce sounds as though it’s expensive on a historical basis based on all of my measures, it’s still cheap. It’s still early in this bull market and I think gold is going to be going much higher. My near term target is $US 2,000 per ounce and I think we will see that in the not too distant future.

- James Turk via finnews

Thursday, October 16, 2014

Forget Promises, Buy Physical Assets

GoldMoney Founder and Director, James Turk advises how to preserve purchasing power in the face of rising risks in the global financial system.

- Source, Yahoo Finance

Monday, October 13, 2014

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

"People lose sight of what's real money, and the money bubble grows"

This week we speak with the founder of Goldmoney, James Turk. James Turk has long been a proponent of sound money. In 2001, he founded the precious metals online dealership, which was very unique at the time, and is to this day one of the most popular precious metals dealers online. We brought James on to talk about the role of precious metals in today's economy, and what James thinks it's role will be in the future.

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.

Finally, on the topic of storage of physical gold. If you are buying physical gold, there are really only two ways to store it: at home or have professionals store it for you. If you store it at home, you have it at hand, but it can get stolen, and it can be inconvenient to sell. But if you use professional storage, you don't have it at hand but you do have liquidity, and can easily convert the gold into a national currency.

James Turk has over 40 years’ experience in international banking, finance and investments. He began his career at The Chase Manhattan Bank where he worked on assignments in Thailand, the Philippines and Hong Kong. In 2001 he co-founded GoldMoney and remains a director of the group. James makes regular conference appearances around the world, provides commentary for numerous publications and newswires as well as producing articles for his website and GoldMoney.

Thursday, September 4, 2014

Gold Has Been Climbing the Wall of Worry

The federal government has simply made too many promises that in total cannot be fulfilled. It is for this reason that everybody should be accumulating physical gold and silver. It is to be ready for the federal government’s day of reckoning, much like the mini-reckoning that occurred in 2008. It will be different the next time, though, because there will be no one who can bail out the federal government. But let’s move away from the big picture and go back to focusing on the week ahead.

Will gold and silver drop again this week because of the economic news and FOMC announcement? We’ll see, but whatever noise impacts gold and silver this week will soon pass.

The plain fact is that gold and silver are undervalued, and consequently the tide already has turned in their favor. The uptrend in gold and silver has now been underway for 13 months. It was June 2013 when the precious metals made their low, and for months gold and silver have been climbing the proverbial ‘wall of worry’ that is the characteristic of all new bull markets.

- Source, James Turk via King World News

Monday, September 1, 2014

Understand That Gold is Manipulated

The Fed’s balance sheet hit a new milestone last week. For the first time ever, its assets have hit a new record by expanding to more than $4.4 trillion. That means a lot of inflation is in the pipeline.

Anyway, if we use history as a guide, these economic reports and FOMC announcements in the past have repeatedly been met with intervention by central planners in an attempt to keep the price of gold and silver under their thumb. No Fed official wants to be embarrassed by a rising gold price when testifying before Congress, which explains why the gold price dropped during Fed Chairwoman Janet Yellen’s testimony two weeks ago.

Similarly, no Fed official wants to admit that six years of unprecedented money printing has failed to produce a meaningful economic recovery because it would expose the lie that central planners and their money printing are beneficial.

Fortunately, in addition to more people understanding that the gold price is manipulated, more people are questioning the role of the Fed and starting to understand that the Fed serves the banks and the federal government, not the American people, by printing money to perpetuate the illusion that an over-leveraged federal government is solvent when in fact it is not.

- James Turk via a recent King World News interview

Friday, August 29, 2014

Sadly, The War on Gold and Silver Continues

The good news is that these tests show that support around $1,300 is solid, which is confirmed by the strong demand for physical metal that showed up on these price dips. There is a lot of cash patiently waiting on the sidelines to scoop up physical metal whenever the price drops.
Now for the bad news. Both dips were the result of price manipulation by the central planners and their allies who pile on the short side by selling as much paper gold and paper silver as they need to stop precious metal prices from climbing. So sadly the war on gold and silver continues.

Consequently, we need to be cautious about the rest of this week. While the Comex options expired today without the central planners and their allies taking gold below $1,300, the more important over-the-counter options expire over the next couple of days. Then on Wednesday afternoon gross domestic product for the second quarter will be reported. Also, the unemployment report will be released on Friday. So there is a flurry of economic reporting this week.

As if that were not enough, there also is the Federal Reserve's Federal Open Market Committee meeting this week. The consensus is that its announcement -- to be made Wednesday afternoon -- will say that the Fed will continue tapering, meaning that it is still slowing down the printing press.

- James Turk via a recent King World News interview

Tuesday, August 26, 2014

Silver was money in Hamburg for 250 years

Steffen Krug ( ) talks to James Turk about the monetary history of Hamburg and its 250 years of 100% reserve silver banking with the Mark Banco until Bismarck replaced it with the Goldmark in 1873. To Napoleon's surprise Hamburg actually kept more than 100% reserve backing, being the only bank in Europe to do so. The Mark Banco was equivalent to 8.5 grams of silver. They also discuss how traditionally banking was divided into two different businesses: commercial or transaction focused banks on the one hand and deposit taking loan-making investment banks on the other, whereas today both functions are dangerously mixed. The interview was recorded on 14 May 2011 in Hamburg, Germany.

Saturday, August 23, 2014

Can the US grow its way out of a currency collapse?

Lawrence Parks, of FAME, and James Turk, Director of the GoldMoney Foundation, talk about the possible political consequences of the coming monetary crisis and the abuse of emergency powers by politicians in the US in history, as well as the disturbing recent trends. They comment on Roosevelt's gold confiscation, Nixon's wage and price controls and GW Bush's Homeland Security orders, including emergency powers in the case of economic crises. They also discuss the euro and its chances of survival and how the Chinese government is promoting gold ownership.

Wednesday, August 20, 2014

Ben Davies: Gold Is Money

Ben Davies ( and James Turk, Director of the GoldMoney Foundation, talk about the current fiat currency world monetary system established under "Bretton Woods II". They explain the imbalances created by the hegemony of the fiat dollar, and how it allows mercantilist vendor financing and the accumulation of huge FX reserves in sovereign wealth funds and other vehicles. Ben Davies thinks that our current monetary system is living on borrowed time.

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