Wednesday, July 19, 2017

The Exchange Stabilization Fund and The Gold Reserve Act


Chris Powell, Secretary/Treasurer of http://gata.org, and James Turk, Director of The GoldMoney Foundation and Founder of GoldMoney discuss the Exchange Stabilization Fund in this video. This fund was established in 1934 as a provision in the Gold Reserve Act. It only answers to the Treasury Secretary and the President.


Friday, July 7, 2017

You Don't Invest in Gold, Gold is Money


James Turk, globally recognized expert on precious metals, joins Kuzman Iliev and Vladimir Sirkarov in 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.


Saturday, June 24, 2017

Backed Currency – A Fairly Recent Phenomenon

Humans have been using metals as money for almost three thousand years. Until fairly recently, historically speaking, gold, silver and other metals were the basis for money all over the world.

Over the last couple of centuries, money lost its exclusive form of gold and silver coinage. Base metal coins and paper money, whose values were linked to gold at a fixed rate, gradually took over.

Linking printed paper notes and base metal coins to gold satisfied the requirement of money supply stability, given that the stock of gold is relatively constant, and only rises depending on how much new gold is mined from the earth.

Historically, the above-ground global gold stock has generally risen at the same rate as world population growth and global GDP (gross domestic product) expansion.

Renegade Inc. quotes James Turk, co-founder of Goldmoney, a global full reserved gold-based financial services company, who said:

“The above-ground stock [of gold] grows about one and three quarters per cent per annum, which is approximately equal to world population growth and new wealth creation. Money supply stability is thus guaranteed, in theory at least.”


Tuesday, June 20, 2017

Golden Opportunity? Precious Metal Secured Peer to Peer Lender Gets Authorized

There’s a new business model among the ranks of the fully authorised peer-to-peer lenders. Lend & Borrow Trust Company (LBT) is a platform which allows users to borrow against their precious metals.

Lenders earn interest by investing in loans that are secured against “investment grade” gold and silver bars. LBT takes effective control of the pledged gold and silver on behalf of lenders, and will sell it off if a borrower defaults on a repayment.

The pledged precious metals are stored in specialised bullion vaults in England and Hong Kong, operated by cash-handling company Loomis. Pledged bars must meet the standards of the London Bullion Marketing Association.

The maximum loan-to-value ratio on the platform is 65 per cent. LBT continuously monitors the LTV and will make a margin call if it rises to 75 per cent, meaning than the borrower will be required to pledge more collateral and/or partially repay the loan to bring the LTV back into line.

LBT’s founder, James Turk, previously founded and floated an online gold trading platform called Goldmoney. Now listed on the Toronto Stock Exchange, Goldmoney has a market cap of CAD$225m. Goldmoney is a shareholder in LBT, and Turk tells us that the platform will complement the services that Goldmoney already offers to its c. 1.5 million customers.

LBT has been operating as a business-to-business lending platform since December 2016, when it completed its first loan.

Turk, who is chairman of LBT, said that the authorisation process has taken 21 months.

“Lenders benefit, but so do borrowers because they can monetise their precious metals,” he said. “With LBT, borrowers and lenders interact without disclosing their names through online auctions that enable both parties to ‘lend & borrow’ at a mutually agreeable interest rate.”

These auctions may be initiated by both borrowers and lenders. Either borrowers list borrowing proposals, or lenders enter the conditions under which they would be willing to lend, with borrowers then bidding for the money.

The platform supports lending in five different currencies: GBP, EUR, USD, CAD and CHF. Its first loan was a £2m loan in GBP. Its second was a $5.25m deal in CAD.

Investors must invest a minimum of £5k to use the platform. The minimum loan size for business borrowers is £25,001, and £60,261 for individuals.

Peer-to-peer lending platforms in the UK must be fully authorised in order to offer an Innovative Finance ISA product to investors. There are now a decent number of fully authorised firms in the market, including (as of last week) the world’s original peer-to-peer lending platform Zopa.

LBT has said that the launch of its own IFISA is in the pipeline.


- Source, Alt Fi

Friday, June 16, 2017

A New Bull Market in Gold?


James Turk is widely respected as one of the true legends of the gold market, with over 40 years in the business. In conversation with Grant Williams, James looks back on his career, which is entwined with the modern history of gold, examining the potential for the next break to the upside and what comes next when empires of money end.


Monday, June 12, 2017

I Think We’re Seeing the Start of a Short Squeeze


-- I Think We’re Seeing the Start of a Short Squeeze!”
-- Don’t Forget to Sell Your Bitcoin Later This Year & Buy Gold & Silver
-- Big Money is Bullish: This Is the Way Bull Markets Get Started!
-- Backwardation is Back!


Monday, May 29, 2017

Don’t Forget to Sell Your Bitcoin & Buy Gold & Silver


Expert Insider James Turk Is Quietly VERY BULLISH On Gold & Silver Right Now:
  • “I Think We’re Seeing the Start of a Short Squeeze!”
  • Don’t Forget to Sell Your Bitcoin Later This Year & Buy Gold & Silver!
  • Big Money is Bullish: This Is the Way Bull Markets Get Started! 
  • Backwardation is Back! 
  • Turk Explains This Short Squeeze Is Being Driven By Longs Looking for PHYSICAL METAL…
Shorts Are Trying to Take the Demand For Physical Off the COMEX and Force it to the OTC Market.

- Source, Silver Doctors

Saturday, May 20, 2017

Gold: GATA & James Turk with His “Smoking Gun”

The DJIA (Dow Jones) and its step sum below peaked on March 1st of this year, after which the venerable Dow saw heavy selling. The collapsing step sum shows us that. But the price trend of the Dow Jones has weathered the selling better than expected.

I am about ready to declare the Dow Jones and its step sum is forming a Bull box, but not just yet.

What makes this a bull box? Historically, the price trend is a better predictor of future market trends than is a price series’ step sum. Think of the price trend (Blue Plot) as the market’s reality, and its step sum (Red Plot) an indicator of market sentiment. A step-sum box (either bull or bear) identifies those times when a market’s emotions are out of phase with a market’s reality.

Right now, the market’s reality for the Dow Jones looks bullish as its step sum collapses under the weight of day after day declines.

Usually, these bull boxes terminate as daily advances begin overwhelming declines, causing the step sum plot to reverse upward, which then results in a nice advance in the price trend. Should that happen for the Dow Jones below, my readers won’t need me to tell them the bull box is closed (terminated). That could very well happen here. In a best case scenario, I wouldn’t be surprised seeing the Dow Jones over 22K by mid-June, maybe before.



Not all bull boxes resolve themselves in the bull’s favor.

In other words, they fail. In the chart below, gold and its step sum have seen three bull boxes form in the past two years, and all three of them have failed. It’s very unusual seeing so many bull boxes form in a market during a two year period.

Seeing all three of them fail is even more unusual.



But if one is going to be a bull in the precious metals markets, one has to realize that the government and its regulators, as well as the global central banking cartel, are on the other side of the trade. So it’s not unusual seeing strange things happen in the market, the least of which are the three failed bull boxes above.

Now we wait to see what happens.

Can the “policy makers” take gold down below its lows of March 9th ($1,199), or down to $1,125 from last December? I don’t think they can. But if they do, they’ll once again provide another excellent opportunity to purchase gold and silver.

Here’s gold’s and the Dow Jones’ step sum and 15 count table. The price of gold was down every day this week. Its 15 count is down by six from last Friday. That’s a lot of selling pressure. But seeing the price of gold down by only $30 proves the bulls are only retreating, not running away in a panic – at least not yet.

The “policy makers” aren’t finished with the gold bulls. But if the gold bears continue their attack on the bulls as we see below, they’ll become exhausted in the next two or three weeks. That’s when we will see what the bulls can do; hopefully something impressive.

Ideally, I’d like the current selling to drive gold’s 15 count down to -9, or lower as the bulls successfully defend the lows of last March ($1,199). That would create a good base from which the gold market could make some really solid gains in the months to come.

Looking at the Dow Jones side of the table below, since March 31st, we see exactly this when it had a 15 count of -9. But as seen in the Dow’s step sum chart above, we’re still waiting for the bulls to do something impressive with the Dow Jones. So far the bulls have had only two days with a nice advance (April 24th & 25th).



Monday, May 15, 2017

James Turk: Gold, Silver and the Coming Economic Crisis


Over the past three weeks, approximately 11 trading days, silver has suffered one of the longest downward spirals in a great many years and some have even argued this is the longest ever. I try not to look a gift horse in the mouth and simply use this manipulated beating to acquire more money at a more favorable exchange rate. Some people call it the “price” of silver, but in doing so the monetary history of silver is discredited and wiped from memory. This has to change; but I digress.

I sat down with James Turk, Founder, GoldMoney, to find out what exactly is going on with silver, gold and our current state of monetary change. Central banks, the world over, have pushed economies, both large and small, to the brink of collapse. The monetary magic that has been foisted upon the world is beginning to unravel. Fiat currency, created from nothing and assigned a value, will return to it’s intrinsic value of zero; history has proven this time and again. Gold and silver are still the only money that has survived and stood the test of time. Time will prove this be the case once again.

If you don’t believe me ask anyone in the Eastern world which has true value – their government issued currency or the families gold horde? Ask yourself this – for what purpose has China and Russia been adding gold to their official gold holdings? Is it to create more jewelry, more trinkets or for the purpose of reintroducing gold to the monetary system? What about all the physical gold that has been passing through the Shanghai Gold Exchange? Are the citizens, companies and possibly other sovereign nations acquiring near record amounts of gold because it has no value?

This is to say nothing of what is happening in India. The government of India and the latest scheme to separate the people from their gold, has not only failed miserably, it is now creating a massive gold run in the country. The past two months has seen an exponential rise in the volume of gold entering the country through official channels. India is well known as the gold smuggling capital of the world, so the actual volume of physical gold moving into India could be much higher than what is officially reported.

This brings us to the BRICS nations and more specifically Russia and China. Both nations have agreed to open a shared gold market in their capital cities to help facilitate gold acquisitions for India, Brazil and South Africa. As these nations continue to acquire more gold we have to circle back to my earlier question – for what purpose is all this gold being acquired? Let’s not forget the nations along the New Silk Road (One Belt/One Road) are all acquiring gold as it will be one of the trade items.

What I learned a long time ago is if you wanted to be wealthy a person should act and do as a wealthy person. In this case we have entire nations whose wealth is rapidly surpassing that of our own. The soon to be new “middle class” will be in countries like China, Russia and India. These “wealthy people” are all acquiring gold. Why would I stand idly by and not “act as if”?

Mr. Turk does a masterful job of putting it altogether and delivering a power-pack 20 minute show.

- Source, Gold Seek

Friday, May 5, 2017

Either Way The Gold Price Soars

They either fail to deliver, which will send the price of gold soaring as people everywhere move out of paper representations of gold into physical metal, or they cover their shorts by buying physical metal in a tight market already starved of physical metal, which would also send the price of gold soaring.

I’ve mentioned before that one of these days leading into option expiry, the delta-hedgers are going to be forced to scramble for cover. We are getting closer to that moment, so we need to start thinking about June contracts expiring at the end of May. The clue will be to watch how the spot price compares to June delivery and whether a deep backwardation develops, which brings me back to silver.

As if all of this about gold wasn’t bullish enough, there is the obvious strength in silver. The shorts can’t get it below $18. It is solid as a rock, so we may see a short squeeze in silver when the May futures go to first notice day and the May options expire at the end of this month.

- Source, King World News

Tuesday, May 2, 2017

Gold Market Set Up For A Mammoth Short Squeeze

But if my interpretation is correct, gold is getting set up for a potentially mammoth short squeeze. My interpretation of this data is that the shorts are stuck. They were not able to deliver everything the longs wanted. So the shorts did the best they could under the circumstances. Unable to deliver, they rolled their short positions forward.

So the demand for physical gold by strong hands who want to buy in size is outstripping available metal, which ties into one of the key points in your excellent interview with Andrew Maguire this weekend. Could these strong hands be the sovereign buyers that Andrew referred to?

This EFP activity also ties into another point Andrew made in his interview. The gold price in the physical market is increasingly being set in China, the rest of Asia and the Middle East. Consequently, the power of the gold price manipulators who use paper is diminishing. The manipulators are fighting this loss of power by trying to delay the delivery of the physical gold they are obligated to deliver. They are between a rock and a hard place.

- Source, James Turk via King World News

Saturday, April 29, 2017

Paper Shorts Are Scrambling

But here is what I find really astonishing, Eric. Look at all the June EFPs. And look at how the April EFPs were declining over the week while the June EFPs were rising. It means that the shorts were unable to deliver on the April contracts, which would have required delivering the metal last week, before the last April contracts expired. The shorts didn’t have the metal, so instead they promised the longs to deliver in June, no doubt with price concessions to the longs to sweeten the deal to get the longs to accept the risk of waiting two more months for delivery.

Here’s another point worth thinking about. In normal markets the shorts who are obligated to deliver physical metal do so as soon as possible at the beginning of the delivery month for two reasons. First, by delivering metal on the first day, they don’t pay storage charges for the rest of the month. Second, the sooner they deliver, the sooner they get paid for the metal they are selling.

It used to be that EFPs were mainly used to sort out a small number of positions at month end, but last week’s EFP volume was huge. It was 111 tonnes, which is about two weeks of annual production. That is a huge volume, and the fact that this activity is taking place at the end of the month means the shorts are trying to put off delivery as long as possible because they don’t have metal.

I need to bring in here a word of caution, Eric, to keep our mind from imagining what could unfold in the weeks and months ahead. Using Comex data is like trying to figure out what an elephant looks like by just grabbing a foot. There may be other interpretations of this EFP data, which is only giving us a brief, limited look under the hood of the bullion dealers.

- Source, King World News

Tuesday, April 25, 2017

Gold Shortsellers Ran Into a Wall of Buyers

They then tried a second time to push gold under $1240 when New York opened. But the selling in the paper market by the price manipulators was hit by a wave of buying. The buying continued throughout Friday, and gold actually closed near the highs for the day, up $2.30 from the day before. It was another sign of real strength. To back this up, here is the third point I want to make about gold, which provides some solid evidence that I find quite amazing.

There is a little-known feature offered by the Comex called EFPs, which is short-hand for Exchange of Futures for Physicals. These are transactions in which a Comex futures contract is exchanged for an offsetting position in the physical market. These transactions are done off the Comex in privately negotiated deals.

Here’s an example of how it normally works. Let’s assume you want to take delivery of an April futures contract, and the firm that sold you the contract doesn’t have the metal in the Comex vaults. So the short calls you up and agrees to deliver the metal to you in another vault, at a price and on the terms the two of you negotiate.

Given that the short does not want a failure to deliver, the short will often make a concession in the price or offer other favorable terms to get the long to accept. Now let’s look at what happened last week. The following table shows the EFP transactions on the Comex.

First, this EFP activity explains why open interest dropped by 45,471 contracts last week. With that kind of selling pressure, why didn’t the price manipulators drive gold below $1,240? It’s because the open interest did not disappear from selling by weak longs. Rather it disappeared because the longs are strong hands who took delivery – or promises to deliver in the future – through EFPs. The 35,843 EFPs last week were a staggering 79% of the open interest decline.

- Source, James Turk via King World News, Read More Here

Friday, April 21, 2017

James Turk: A Massive Short Squeeze Is About To Send Gold Skyrocketing

First, despite all the pushing and shoving of the gold price last week, it only dropped 90¢ by Friday’s close. That is an impressive performance. Silver actually closed up 51¢ for the week, which I will get to in a moment, after we cover gold.

Second, gold came out unscathed from the battle on Friday, which was also the end of the quarter. We often see quarter-end window dressing by the price manipulators because a low price makes the losses on their short positions look more palatable. But that gambit didn’t work for them the way it used to.

On Friday gold was pushed all the way down to $1,240 during thin Asian trading, which was a perfect set up to scare and shake-out weak-handed longs, and also to get as many call options as possible to expire out of the money. But buyers appeared at that $1,240 level.

- Source, James Turk via KWN


Monday, March 27, 2017

Pierre Jovanovic Interview with James Turk in Paris


Pierre Jovanovic talks to James Turk about John Law, the Mississippi Bubble and how John Law duped the French people and the French Regent into buying his shares and allowing his Bank to issue bank notes. They explain how the whole experiment blew up in just 5 year and the terrible consequences for the whole of France. They then talk about the repetition of the fiat money experiment during the French Revolution and how that lasted only 7 years: from 1789 to 1796, with even more dire consequences for the French people. They also talk about current day similarities and lessons to be learnt.


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.


Sunday, January 8, 2017

Thursday, January 5, 2017

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


In Week’s Crucial Metals & Markets, London Analyst James Turk Warns:
1. In the Final Blow-Off Top, You Won’t Sell Your Gold and Silver For Dollars…
2. We’re Very Close to Breaking Out Here in Silver. Is it Time to Pile In?
3. Deutsche Bank Trading at 25% of Book Value- What is the Market Pricing In?
4. THIS is Why You Want to Maximize Your Exposure to Gold and Silver
5. James Turk Explains Why He Is “So Bullish On Gold and Silver Here, Particularly Silver”
6. Silver Will Ultimately Take Out $50 High, That’s When the REAL Silver Bull Market Begins!


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