, James Turk Blog

Saturday, September 22, 2018

Gold Skyrocketing In Price In Turkish Lira

We are seeing, in Venezuela, one of the greatest gold bull markets in history, and Turkey is not far behind. This brings up a very important point: Gold is your safety net. Gold is good money, and every national currency pales in comparison. National currencies don’t measure up and never will. 

But here’s the key point, which I think will become increasingly important in the days and weeks ahead as this emerging market currency crisis deepens: In contrast to national currencies, physical gold does not have any counterparty risk. It is money you can hold in your hand. Gold is money you own.”

We are now in the final phase of liquidation and capitulation in the battered gold and silver sector. For those who have the mental strength to execute aggressive accumulation of physical gold and silver at these levels, on this final liquidation, it will provide the last of the cheap prices for the metals. When $1,400 is breached on the upside, the price of gold will move extremely quickly to the $1,800 level.

As for where silver will be trading at $1,800 gold, who knows? One thing is certain, it will be trading a hell of a lot higher than what is being quoted today. It is also important to remember that when the sh*t hits the fan, nobody cares about paper instruments, but across the globe they will accept gold as payment in any crisis, regardless of how bad the meltdown is.

- Source, James Turk via King World News

Tuesday, September 18, 2018

James Turk: Relentless Gold & Silver Takedown Continues

"It’s been a tough day for the precious metals, Eric, but you know how I view these types of situations. We’ve spoken about it many times before — you always have to look at the big picture on a day like today. …

The central planners have a fix on gold that over the past few months has been relentless. They are going all out to trash gold and silver in the paper markets. So far it has worked out for them. But even though they are winning a battle, they will lose the war.

Gold has been used as money for 5,000 years. It would be silly to assume that something with that kind of proven track record is no longer needed. The price suppression of the precious metals of late has been very effective. But you can only hold a beachball under water for so long, and right now gold and silver are trading under extreme conditions.

The reality is that asset prices are always, in the final analysis, driven by fundamental factors. Undervalued assets eventually go up in price, and overvalued assets eventually go down in price. The Venezuelan bolivar was overvalued and crashed, just like is now happening to the Turkish lira. Look at this chart of gold priced in liras."

- Source, James Turk via King World News

Sunday, September 9, 2018

Real Vision: 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.

- Source, Real Vision

Tuesday, September 4, 2018

James Turk: Using Goldmoney to Preserve your Wealth

James Turk, founder and chairman of GoldMoney, explains how owing gold with their system works and gives details on how you can preserve your wealth with gold.

- Source, Jay Taylor Media

Sunday, August 19, 2018

They Will Never Stop Suppressing Precious Metals

“The central planners are relentless, Eric. When it comes to supressing precious metal prices, they never give up, persistently pounding them time and again. 

For more than two months, every time silver has challenged $16.80, the central planners sell whatever amount of paper they need to keep the silver price contained.

But – and here’s the important point – the central planners are going to lose this battle and indeed the war. The reason is that paper silver becomes increasingly valueless as its supply increases. The market will never accept an infinite supply of paper silver, just like Weimar Germany and Zimbabwe found out with their paper currencies.

At the same time paper silver becomes less valuable, the aboveground stock of physical silver becomes more valuable."

- Source, James Turk via King World News

Wednesday, August 15, 2018

James Turk: Beware the FED

"Also, I have been mentioning overhead resistance at $16.80. Spot silver today closed in London and New York above that level, indicating a breakout may be starting. 

However, a word of caution. Today’s big jump could be a head-fake. It could be just a 2-day squeeze with weak-hand shorts exiting to avoid getting hit by Fed news on Wednesday or an ECB announcement about QE on Thursday. Then again, maybe it is real this time.

That’s the thing about markets. You can’t predict the future. All you can do is buy good value, and that’s what silver is at the moment. It is, however, worth noting that despite the Fed’s interest rate hikes over the past year or so, gold and silver are holding their own. 

The reason is that the market is beginning to recognize two things: First, real interest rates – those adjusted for a true rate of inflation – are negative, and any increase in rates by the Fed on Wednesday will not change that reality. 

Second, interest rates cannot go any higher because it will kill the economy in an important mid-term election year. The Fed will not risk its future existence and suffer President Trump’s ire by raising interest rates further."

- Source, KWN

Saturday, August 11, 2018

James Turk: The Gold to Silver Ratio is Contracting

"I also like what is happening to the gold/silver ratio. It is always a reliable leading indicator. The ratio has been over 80 most of this year, meaning it took 80 ounces of silver to equal one ounce of gold. But after topping out at 82.4 in early April, the ratio has been falling and currently is about 77. A falling ratio means silver is outperforming gold, which is a bullish sign for both precious metals. This outperformance occurs for a reason.

The silver market is much thinner than gold, mainly because the above ground stock of physical silver is tiny compared to that of gold. So when money comes into the sector, these flows have a greater impact on the silver price than on gold. In other words, silver is more sensitive to money flows and outperforms gold in precious metal bull markets.

Also, traders who are ‘old hands’ in the precious metals market know about this relationship between gold and silver. So these leveraged traders target silver in the expectation of outsized gains relative to gold. I don’t know when or how the stranglehold on both precious metals will be broken, but it will be broken eventually. And the declining gold/silver ratio means it may already have begun."

- Source, King World News

Tuesday, August 7, 2018

I've Been Beating the Silver Drum for a While and I Still Am

"I’ve been beating the drum on silver for quite awhile now. And I’m going to beat the drum again today…

The reason is simple. There is a lot of value there, particularly when you consider that silver is the only commodity in the world that is still well below its 1980 record high. So we need to look past the stranglehold that has gripped silver – and gold – these past few months. Importantly, strangleholds don’t last for ever, and indeed, there are signs that silver is coming to life.

Comex open interest expanded 20,000 contracts last week on a 2% jump in the silver price. That spectacular OI jump is an indication of two things. 

The fact that it occurred on a relatively small price increase shows the dogged determination of the shorts to keep their grip on silver and keep capping its price. 

But it also shows something else. Silver is not that far from a record high in open interest. That it jumped by that much in one week is a good indication of the huge amount of speculative money moving into silver in anticipation that the short’s stranglehold is about to be broken..."

- Source, KWN, read more here

Friday, August 3, 2018

Billions Of Dollars Western Central Banks Dumped To Smash Gold & Silver

Eric King: “James, today we saw a $34 billion paper smash in the gold market in a matter of hours. In spite of the bloodbath in gold and silver, you were doing some buying in the futures market — your thoughts on what’s unfolded today.”

James Turk: “Yes. How many times have we been here before over the years, Eric, where we see these paper smashes? They drive the price lower for a day, maybe…

- Source, King World News, Listen Here

Monday, July 30, 2018

James Turk: This Dire Warning Is Now Unfolding Before Our Eyes

“The next collapse is going to make 2008 look like a walk in the park. The problems that we have today are so much greater than they were back then. And the abuse of the market process itself is so much greater than it was back then. I always like to paraphrase Ludwig von Mises, who in my mind was the greatest economist of the 20th century. 

He basically said, ‘Governments will destroy markets long before they ever understand how they work.’ And with their constant interventions trying to do things to the market process, we’re destroying markets. And that’s very, very worrying because when you destroy markets you end up with Venezuela, and nobody wants to be in that kind of situation…"

- Source, James Turk via King World News

Thursday, July 26, 2018

James Turk: Silver, Gold and De-Dollarization Update

In your recent KWN interview you reiterated that central banks would either be forced back onto a gold standard or the system would, in essence, change so much that central banks would willingly move back to a gold standard. 

Peter Boehringer – the architect of the German repatriation movement stated there were close to 21 countries that were either discussing gold as money, gold repatriation or some form of very high level discussions of gold. 

Gold has been repatriated by several countries now from U.S. vaults returning to Venezuela, the Netherlands, Germany and most recently Turkey. Is this, in your opinion, countries preparing for a change in the monetary system or is something else at play with these moves?

With Russia recently dumping 50% of their U.S. treasuries – and for the record it wasn’t a real significant volume, however, the gesture was huge – Russia also recently ask their Russian companies to move out of the SWIFT system and into their alternative payment system that is tied directly to the Chinese alternative to the SWIFT system. 

Would you say Russia is really the canary in the coal mine for some type of change in the global monetary system and is this part of the overall nonstop attacks by western corporate media against Russia?

Friday, July 20, 2018

The Dollar is Oversupplied

In order to assess the effect of a credit crisis on the dollar, we must therefore gauge how extended the dollar appears to be in terms of its international circulation. The most recent numbers from the US Treasury TIC data is for the position in June last year for foreign ownership of US securities, and for end of year 2016 for US ownership of foreign securities. Putting to one side these timing differences, since 2006, dollar-denominated investments owned by foreigners totalled $8.52 trillion more than US ownership of non-dollar foreign investments, up 275% since 2008. This is illustrated in the following chart.

We cannot say for sure this represents something close to Triffin’s tipping point, where the quantity of dollars in foreign hands will undermine the currency. But according to the World Bank, global GDP has only increased by about 20% since 2008, suggesting that there are, indeed, far too many dollars in foreign hands relative to economic activity, compared with ten years ago.

This being the case, the dollar could be set to fall on the foreign exchanges during a credit crisis, when investment liquidation pressures increase, and currency hedges are initiated. Importantly, it could also be the desired outcome for the Fed, which is firmly wedded to the idea that falling prices at the retail level must be avoided at all costs, and a lower currency could be used with zero, or even negative interest rates to help support domestic prices. In these circumstances, gold, and perhaps even cryptocurrencies, will be seen by investors as safe-havens from inflationary monetary policies, whose primary purpose will be to contain debt liquidation and protect the commercial banks.

However, this is not the whole picture with respect to exchange rates.

It is the nature of fiat currencies that their individual values are inherently uncertain, each one reflecting purely subjective values in the foreign exchanges. There can be little doubt that the current equilibrium between, say, the Argentinian peso and the US dollar would be disturbed in a global credit crisis by undermining the peso. We cannot be so certain of the exchange rates between, say, the euro and the dollar. Nor can we be so certain how official Chinese policy towards dollar investments may change, or indeed the position of other sovereign wealth funds. All we can say is the foreign world outside America is overexposed to dollars, just as it was in the late 1960s, when the remedy was to sell them for gold.

- Source, James Turk's Goldmoney