Monday, April 28, 2014

Gold Backwardation Like This Has Never Happened in History

When the spot price of gold is higher than the future price, it's a rare occurrence called "backwardation." James Turk from says, "The weird thing that has happened and it's never happened in history, when the gold price was driven down last year to its lows in June 2013, gold went into backwardation, and since then, it has been in backwardation more than 50% of the time. The only other times backwardation occurred were in 1999, with the lows in gold, and 2008, with the lows in gold. After both of those backwardations, the gold price soared."

Turk, who recently co-wrote a book called "The Money Bubble," goes on to say, "Sooner or later, we are going to go over the cliff as we did in 2008. They saved the system, the system in 2008, but I don't think this time around they are going to be able to save the system. So, you have to prepare for it."

- Source, USA Watchdog:

Backwardation is Gold is Continuing

What’s going on in the gold market is just unbelievable, Eric. It’s really never happened before. We’ve had this prolonged backwardation starting in the middle of last year when the lows in gold and silver were reached....
And by the way, those lows in gold and silver have not been broken. We are now nine months into a base-building pattern, which is ultimately very bullish. But this backwardation in gold is just going on and on and on.

You have to ask yourself, ‘Why is it doing this?’ There is only one logical answer: It’s not that this is some kind of ‘new normal.’ It’s an aberration that’s occurring because of intervention by central planners to keep the gold price from rising.

What they are doing is somehow getting physical metal out of the vaults of Western central banks, and selling it into the market to supply the Asian demand. But it’s not eliminating the backwardation, which continues.

- Source, James Turk via a recent King World News interview

Thursday, April 24, 2014

In Essence, the FED is Bankrupt

The Fed’s debts are greater than its assets. In this regard, the Fed’s true financial condition is not much different from many of the large banks around the world when eliminating the accounting gimmicks that enable banks to sidestep the true market value of the assets they hold.

These banks keep their doors open for business because they have sufficient liquid assets to provide the illusion of solvency, but they are essentially the ‘walking dead.’ In essence, the Fed is bankrupt. What’s worse, they will become even more bankrupt if interest rates continue to rise because the true market price of any fixed rate assets they own - like bonds and mortgages - will decline as interest rates rise.

- Source, James Turk via King World News:

Monday, April 21, 2014

Central Planners are Manipulating Markets

Look at what happened to gold over the last several days: On the way up to $1390, ‘black-box’ funds were buying (and covering short positions) and the gold open interest exploded. Who was selling into this rising price? It was the gold manipulators. They were following government instructions, and sold as the gold price climbed higher, and kept selling as evidenced by the rise in Comex open interest.

The manipulators could sell without regard to risk because they are backed by essentially unlimited government money. Their selling onslaught was enough to turn the market lower, forcing the funds to sell their long positions. The market manipulators bought what the funds were selling as the gold price dropped. So the manipulators covered their shorts with a profit while the funds took a loss. The huge drop in Comex open interest corroborates this outcome.

It means that the central planners, through their market manipulations, have sucked out most of the customer money originally invested in these funds, causing many of these black-box traders to close down their funds and return to their investors what money was left after losses.

The failure of this form of black-box trading was inevitable in a rigged market. I wrote about it in 2004 and 2005, observing how customers of these funds were getting their pockets picked by the market manipulators, who were following the orders of government central planners.

- Source, James Turk via King World News:

Friday, April 18, 2014

Fund Managers Are Going Out of Business

There was an interesting news item reported by Bloomberg today, Eric. A $120 million managed-futures fund run by Tudor Investment Corp., which is one of the best fund managers in the business, is closing and returning money to its clients because of three years of losses....

This report follows closely on the heels of managed futures funds that were closed by John Henry & Co., which up until the years before its closure had a great track record. Also, reported losses are being incurred by one of the largest managed-futures companies, the Man Group and its flagship AHL Fund, which until recently had a successful track record going back to the early 1980s.

There is an interesting story here because there is a similarity to these funds. All of them are managed by ‘black-box’ mathematical models. These models are designed to spot price trends of commodities. So the fund buys futures contracts when trends are rising, and sells the long position (and some aggressive funds, at the same time, even go short) when the price trend reverses.

These models were very successful and generated outsized returns from the time they were first developed in the late 1970s up until the last several years. So they key question is what caused their change in fortune? The answer is simple...

- Source, James Turk via a recent King World News Interview, read more here:

Tuesday, April 15, 2014

Gold is Money and Ukraines Fiscal Woes

With each passing day, the Ukrainian government's financial condition becomes more dire. Ukrainian officials have said that they need $35 billion over the next two years or they are in deep trouble. They'll end up defaulting on some of the $136 billion in debt they currently hold, an event that could end up sending shock waves through emerging markets. But after Wednesday, it now looks like Ukraine could get up to $30 billion from the IMF, EU, and US collectively, but this money comes with conditions. Erin takes a look at some possibilities.

Our guest today is James Turk, co-founder and director of, and we talk about gold, gold, gold. Turk explains that gold has been used as money for five thousand years, and he argues that it's much better than fiat currency. In fact he thinks that people are losing confidence in paper money because the super-rich are moving out of money and buying up tangible assets. He further argues that gold allows you to avoid the risks of political manipulation or economic warfare.

After the break, Turk talks about the advantage gold has over fiat currency. He also explains why he is bullish on silver right now, but gives reasons why it is less desirable than gold. What about paper gold and paper silver? Watch to get Turk's view on these investments. In the final part of our interview, Turk explains why he is concerned with hyperinflation while many people talk about deflation.

In today's Big Deal, Edward Harrison and Erin chat about how airline companies are revamping their frequent flier programs based on ticket price, not miles traveled. Ed gives the details of the changes, the logic behind them, and discusses why companies are making these changes now.

- Source, Russia Today:

Saturday, April 12, 2014

Advanced Technology to Verify the Quality of Gold Bars

Click on this link to hear James Turk's interview with Turd Ferguson of TF Metals Report. They discuss gold and silver, the importance of the use of advanced technology to verify the quality of gold bars.

James discuss how diversification helps you out to avoid government interventions. And they also talk about James' new book - The Money Bubble, the future of money, and the future of gold.

This interview was recorded on 13 March 2014.

- Source, Gold Money:

Wednesday, April 9, 2014

Gold Will Have to Double in Price

Turk points out that gold has moved together with the S & P500 up. Only through the manipulation of the central planners, gold had decoupled from the stock market and had less developed. Turk believes, however, that the movement will converge again. And to make this correlation again, gold would have to double. Accordingly, the expert expects at least as good second quarter of 2014 as the first. Over the next twelve months, the price could even more than 100 per cent down to produce the trend towards the Fed's balance sheet again.

If a scenario by James Turk, then stay raw material shares the greatest chance this year - probably in this decade. SHAREHOLDERS 'notes in his new report " 100 percent in gold, silver & Co "again a promising gold companies before. In addition, just pushing a small explorer in the view of investors. Both stocks have been under normal conditions, a 100 percent chance. Should gold really double in value, both stocks will go through the roof.

- Source:

Sunday, April 6, 2014

James Turk Sees 100 Percent Gold Increase in One Year

Has the price of gold has the potential to be doubled? Yes, says at least precious metals expert James Turk. And the expert expects that this duplication will take place within a year. In an interview with King World News Turk speaks also about the fact that gold has already trained his ground.

The founder of GoldMoney explains the low of gold had been reached last June. Since then, the price had never been lower. The depth is now gone nine months. This gold had formed a strong basis for a rebound. The same is also true for silver. This, however, did not fit to the continuing negative sentiment in the West. In his view, the downward trend had ended last year.
Turk believes that too many people would trust the negative image of the mainstream media with a view to gold.

- Source: