Saturday, October 25, 2014
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.
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.
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.
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
- Source, Yahoo Finance
Monday, October 13, 2014
The Super Rich Get It - Moving Out of Cash & Into Physical Assets!
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 Goldmoney.com, 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.
Subscribe to:
Posts (Atom)