You Are Saving Sound Money

The outlook for silver is spectacular, and my recommendation for both precious metals remains unchanged. Accumulate gold – and if you are inclined to accept the greater volatility, then accumulate silver too – on a cost-averaging program with monthly (or quarterly if it fits your budget better) purchases. By doing so you are saving sound money. Buy physical gold and physical silver only.

- James Turk via FGMR:

http://www.fgmr.com/silvers-very-bullish-three-decade-chart-pattern.html

Currencies in Turmoil

When you have currency turmoil, all you have to do is look at monetary history and conclude that yes, gold and silver, physical gold and physical silver are the place to be to provide that safe haven from that monetary turmoil. And they are a safe haven because, in contrast to the national currencies which are just a bookkeeping entry based on some banks or some government’s promise, physical gold and physical silver, the value of them — first of all, they’re tangible assets, and they don’t have counter party risk — and the value of them derives from the preponderance of people around the world who understand gold and silver’s usefulness as money.

- James Turk via Sprott Money:

http://www.sprottmoney.com/news/ask-the-expert-james-turk-october-2013

Eventually The Manipulation and Capping of Gold Will be Overwhelmed

What happened back in the 1960s is, eventually, governments threw in the towel. There was 12,000 tons of gold hoarded from Fort Knox, officially. There may have been even more done unofficially. We don’t know because there’s never been an outside audit of Fort Knox since the 1950s.

But the point I’m making is that the market is bigger than any government or group of governments. And when something is undervalued, or conversely when something is overvalued, the market doesn’t like it. And the market will respond accordingly.

And what we’ve seen over the past few months, particularly, is this huge demand for physical gold. A wave of buying because price is so cheap. Here at $1,270 an ounce, just like gold was cheap at $35 an ounce back in the 1960s. So it’s taking time, more time than I thought it would take.

But that’s the thing about markets. You can sort of forecast which way the market is heading, and you can determine which assets are overvalued or undervalued, but you can never predict the timing of these things. And what markets require is patience.

But as long as you’re acquiring an undervalued asset, you should be patient. And hope that eventually the market will return to a free market environment, without concerted government intervention trying to cap the gold price, and trying to deny the reality of the situation that gold is very undervalued at these levels.

There’s a bigger issue here too, Nathan. Gold has been money for 5,000 years. It didn’t stop being money in 1971. It stopped circulating as currency in 1971, but it’s still money because it’s useful in economic calculation. In other words, it’s still useful to measure the price of goods and services with gold to determine what’s truly happening.

An ounce of gold still buys the same amount of crude oil it did 60 years ago. You can’t say that for the dollar or any other national currency, which are constantly being debased. So even though gold doesn’t circulate as currency anymore, except in a few places like Turkey, and Vietnam, and parts of the Middle East, it’s still money. And it’s still useful for that reason. And eventually the manipulation and capping of the gold price will be overwhelmed, just like it was back in the 1960s when the London Gold Pool feel apart in March of 1968.

- Source, Sprott Money:

http://www.sprottmoney.com/news/ask-the-expert-james-turk-october-2013

CFTC - Whose Interest Are Really Being Served?

I think the CFTC was following orders from above. And the orders from above came down that, yes there’s been interventions in the gold market, and the market is being manipulated, but it’s being done by the bank for its client. Its client being the US government, and more specifically, the Exchange Stabilization Fund. So I think, essentially, the CFTC bowed to a higher authority.

But more generally, you have to really look at what’s going on in Washington DC these days. And not just with the CFTC, but generally. With a lot of these regulatory and bureaucratic organizations, whose interests are really being served? Is it Wall Street’s interests or is it Main Street’s interests? I think this is just another evidence that, in this particular case, Wall Street’s interests have been put over Main Street’s interests. Which is unfortunate, but that’s the reality of the world in which we live today.

- Source, Sprott Money:

http://www.sprottmoney.com/news/ask-the-expert-james-turk-october-2013

Ask The Expert - James Turk

James Turk is the Founder and Chairman of GoldMoney, the operator of a digital gold currency payment system. Since 1987, Mr. Turk has written the Freemarket Gold & Money Report, an investment newsletter that publishes twenty issues annually. He is the author of The Collapse of the Dollar (2004), SOCIAL SECURITY Lies, Myths and Reality (1992) and several articles on money and banking.

- Source, Sprott Money:

http://www.sprottmoney.com/news/ask-the-expert-james-turk-october-2013

Scramble For Tangible Assets

James Turk of Goldmoney.com predicts, "It's inevitable you are going to see bail-ins as we go forward from here because the capital just doesn't exist." He also says gold is going much higher in a scramble for tangible assets. Turk points out, "The problems we've been confronting the past several years haven't gone away . . . governments have been trying to buy time, but they aren't coming up with any solutions."

- Source, James Turk via USA Watchdog:

http://usawatchdog.com/

Policy Makers Are Doing Little

Don’t put your faith on the pronouncements of any central planner. Rely instead on your own common sense, which hopefully has been well grounded by insights from parents or grandparents who lived through the collapse of the German Reichsmark, Serbian dinar, Argentine austral or any of dozens of other currency collapses. If you did not have that opportunity to learn from relatives who experienced a currency collapse firsthand, then I recommend that you read Mises, Rothbard and the other Austrian School scholars published at Mises.org.

Once you do, then decide for yourself whether the problem facing the US is cyclical or structural. Common sense and experience are telling me that it is structural.

Sadly, policy makers are doing little if anything about it. So we need to prepare for the consequences. The best way to do that of course is to own physical gold and silver.

- Source, James Turk via FGMR:

http://www.fgmr.com/cyclical-or-structural.html

Hyperinflation and Destruction of the Dollar

Normally economic activity revives after a recession, which in turn leads to increased revenue for the federal government, like it did from 2004-2008 when the more rapid growth in revenue almost eliminated the deficit. But not this time. Revenue is increasing, but so are expenditures at almost the same rate.

Consequently, the deficit is not shrinking, which confirms a point I have made repeatedly for two years. The US is confronting a structural problem. It is not a cyclical one that will go away with improved economic activity. Importantly, the failure to address this problem will eventually lead to hyperinflation and the destruction of the dollar.

- James Turk via FGMR:

http://www.fgmr.com/cyclical-or-structural.html

Growth of National Debt Continues to Accelerate

The US federal government spent $369 billion in August, but only received $179 billion in revenue. The resulting $190 billion deficit was a record for any August and the third highest monthly deficit in the current fiscal year, which ends on September 30th.

Looking at this deficit another way, the federal government borrowed 51.6% of the dollars it spent in August. Consequently, the growth of the national debt continues to accelerate...

- James Turk via FGMR:

http://www.fgmr.com/cyclical-or-structural.html

Comparing Gold to Nine Major Fiat Currencies