Central Planners are Playing Defense and Letting Gold Move Higher

We are now seeing the managed retreat that always occurs when the central planners defensive line is overpowered. Gold’s enemies - the central planners and their bullion bank cohorts that act as agents for the central planners - need to step back and let gold climb higher. But the key question is where will they step in again in an attempt to hold the line and thwart gold’s advance?

The logical price level is $1,350, but they may even try to step in here at $1,300. We are seeing some heavy handed selling at current levels. Hundred dollar levels are also key points where short-term traders will often take some profit. Also, gold’s important 200-day moving average, which has been declining since April of last year, is presently $1,304. So bumping up that price level may induce some profit taking at this important technical hurdle.

- James Turk via King World News:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/2/13_Turk_-_This_Is_How_Quickly_Gold_Will_Smash_Through_%241%2C925.html

Return to Gold Invevitable

An expert in gold has forecast that the true worth of gold will be recognised far more if the money bubble pops in 2014.

“The writing is on the wall for the dollar and other currencies. The monetary system is breaking down and central banks are serving their own interests. The return to gold is inevitable,” Jersey-based company GoldMoney founder and director James Turk said at the Investing in African Mining Indaba on Monday.

He told thousands of delegates on the first day of the summit in Cape Town that central banks had been unable to maintain the buying power of different currencies around the world.

“Gold is being saved, not being used as currency. With the way things are today, we will eventually go back to a place where stocks are cheap and gold becomes expensive.

“What we see today is boom and bust cycles. Banks extend credit until they’ve blown too much money. But as JP Morgan said before Congress in 1912, ‘Money is gold and nothing else’. What was true then remains true today.”

Turk said despite its setback in 2013, gold was holding its own against the world’s nine major currencies since the year 2000.

“One bad year after 12 is not the end of the world.”

- Source, Mining Weekly:

http://www.miningweekly.com/article/the-rise-of-gold-2014-02-04

No U.S Economic Recovery Says James Turk

Kitco News speaks with author James Turk about gold, silver, the U.S. dollar and his latest book The Money Bubble. Turk says that in 2014 people need to keep a close eye on these three factors: the Federal Reserve balance sheet, the 10-year T-bill rate and the gold-to-silver ratio. "I don't really see an economic recovery in the U.S.," Turk says. "I do expect a collapse of the American currency." He says that as central bankers continue to print money, currencies continue to be debased and this may cause a currency collapse. "As long as central banks continue to print, and I see no indication they're going to stop, you're going to see a higher gold price," Turk says. "Whether you see it this year or next year is not the relevance thing, it is whether or not you own enough physical metal to protect yourself when currencies do collapse." Tune in now to learn more about his latest book and where he expects to see the price of gold and silver.

- Source, Kitco:

https://www.kitcomm.com/

The Backwardation in Gold is Incredible

I expect to see more short covering. The shorts must be frantic by now, given gold’s huge price advance over the past couple of weeks and the collapse of the central planners efforts to hold $1,250. In fact, this year has been great so far, with gold off to a wonderful start. It has nearly climbed a spectacular $100 already this year.

Most of the attention is being given to gold, rather than silver, and that is understandable, Eric. The squeeze in physical metal is mainly happening in gold so far, which as we speak is still in backwardation. This backwardation is remarkable given gold’s price advance. It shows that holders of physical gold have not been sufficiently enticed to sell and hold dollars or some other national currency instead. It is a sign that gold remains firmly in strong hands, and these gold owners see gold’s upside potential.

Even though gold is stealing the show so far this year, do not overlook silver. It looks ready to catch up. The gold/silver ratio peaked above 65 at the end of January, and has been gently declining since then. It is now under 64. When silver huddles above resistance around $20.25 to $20.40, its upside advance will likely gain some momentum, resulting in silver’s outperformance and an accelerating decline in the gold/silver ratio.

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

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/2/13_Turk_-_This_Is_How_Quickly_Gold_Will_Smash_Through_%241%2C925.html

Physical Silver vs. Paper Silver

David Morgan and James Turk discuss paper versus physical silver and backwardation.

- Source, Gold Money:

http://www.goldmoney.com/

Gold Price Manipulation

James Turk, founder of GoldMoney.com, and Michael Maloney of GoldSilver.com discuss Gata.org, IMF gold and the possibility of gold prices being manipulated.

- Source, Gold Money:

http://www.goldmoney.com/

A New Currency & Revaluing Gold Reserves

Chris Powell, Secretary/Treasurer of http://gata.org, is asked by James Turk, Director of The GoldMoney Foundation and Founder of GoldMoney if we're heading towards a monetary train wreck. Chris expects the central banks to mobilize gold back into the monetary system. This would perhaps mean a new currency arrangement and a revaluation of the gold reserves.

- Source, Gold Money:

http://goldmoney.com/

We're Living Within A Money Bubble of Epic Proportion

James Turk believes the time we live in now will be studied by future historians for generations to come. Just as we today marvel at the collective madness that resulted in the South Sea and Dutch tulip manias, our age will be known as the era when society lost sight of what money really is.

And as result, the wrong kinds of wealth -- today, that's mostly financial assets -- are valued and pursued. And just like those bubbles from centuries ago, when the current asset boom goes bust, the value of paper wealth will vaporize.

In contrast, those holding tangible productive assets or real money will fare much better on a relative basis.

- Source, Peak Prosperity:

http://www.peakprosperity.com/podcast/84489/james-turk-were-living-within-money-bubble-epic-proportion

James Turk on Fiat Money

It's inevitable you are going to see bail-ins as we go forward from here because the capital just doesn't exist.

Money Truly is in a Bubble

Japan’s money-printing failure could lead to currency wars that puncture the money bubble, which I think is the biggest risk to be faced in 2014. At this time of the year there a lot of year-end forecasts, projections and predictions, but no one in the mainstream media is talking about the biggest risk of all - fiat money. And not just the dollar, but all fiat money. An analysis of these problems and what needs to be done is what John and I cover in our new book, “The Money Bubble: What To Do Before It Pops” (see link below to order).

No fiat currency today does what money is supposed to do, which is to serve as a neutral tool in commerce. Instead, national currencies are being tinkered with and inevitably weakened by central planners following misguided policies that do nothing but disrupt the market process and economic activity.

Money is truly in a bubble that has ballooned for decades. Whether the money bubble pops in 2014 or at a later date cannot be predicted. But central banks and governments have not changed the laws of economics. They have not changed the underlying fundamentals of money.

In the words of J.P. Morgan in testimony before Congress in 1912: “Money is gold and nothing else.” What was true then remains true today. Only perceptions have changed, and today's misguided perceptions have created the Money Bubble. So, will 2014 be the year that gold finally clears $2000? I think so. Despite its setback in 2013, holding gold has been a winning strategy for 13 years. And it will remain a winning strategy until central planners in government once again understand J.P. Morgan’s wise insight into money.”

- James Turk via King World News:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/12/30_Terrifying_Tsunami_To_Rip_Through_Global_Markets_In_2014.html

The Money Bubble, Gold and Bitcoin

In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the beggar economy in which the biggest pickpockets rule. They look at the London Gold Fix, in particular, where every day for the past more than twenty years, pockets were picked every single day, according to the data. In the second half, Max interviews precious metals expert, James Turk, about his new book, "The Money Bubble," and about the dollar, gold and Bitcoin.

- Source, Russia Today:

www.rt.com

James Turk launches new book - The Money Bubble: What to do before it pops

In testimony before Congress in 1912, J.P. Morgan, the leading financier of his day, declared: "Money is gold, nothing else." A century later a diametrically opposing view was taken by Wall Street legend Warren Buffett who proclaimed that gold "has no utility" and that "anyone watching from Mars would be scratching their head" trying to figure out why people value it.

How is it possible that one hundred years ago money was nothing but gold, but gold now has no utility? Has gold really changed? Or is it just people's perceptions that have changed, and gold has the same utility as before but its attributes are being ignored or have been forgotten?

These questions and many more are answered in The Money Bubble: What To Do Before It Pops, a new book I have written with John Rubino. We explain what money really is; why there is a bubble; and importantly, what to do before it pops.

A bubble arises when conventional wisdom contradicts economic reality. For example, during the dot-com bubble there was a widespread but erroneous belief that profits didn't matter – only market share did. The housing bubble grew on the pervasive though obviously incorrect belief that house prices never declined. Conventional wisdom now believes that national currencies are money, rather than what they really are – a money-substitute circulating in place of money.

It is a basic principle of civilized society that goods/services pay for goods/services. All commerce arises from barter, where useful and valuable products are exchanged for other products that are also useful and valuable. It is how we humans advance and raise our standard of living.

If I 'pay' for a product by promising to deliver my product tomorrow, the transaction is not extinguished. The merchant has taken on "payment risk" by accepting a "money substitute" instead of "money" itself. The merchant has this risk until he takes the money-substitute and exchanges it for some good or service useful and valuable to him, assuming of course he can do so before any ruinous event arises that erodes or destroys the purchasing power of the money-substitute.

Thus, credit cannot possibly complete a transaction. The use of credit by means of any money-substitute simply defers payment to a future date, and the merchant's acceptance of this postponement means he is taking on someone's promise – and that always involves risk. This risk is the loss of purchasing power that results from inflation, bank failures and capital controls. It is the risk of broken promises.

As the J.P. Morgan quote above makes clear, money is simply the most liquid tangible asset in the economy. Whenever credit in the form of some money-substitute is accepted by a merchant in exchange for the product he is selling, he is not being "paid" in the real meaning of that word.

So for example, if I paid for the merchant's product with a gold coin, the transaction is immediately extinguished. An asset is exchanged for another asset. I get the product and the merchant gets the coin; he has no lingering risk, which contrasts with a transaction when any national currency is used because all of them represent credit. Every national currency in circulation is a liability on some bank's balance sheet, and liabilities of course are not assets. National currencies are nothing but promises to be exchanged for goods/services, and promises always come with risk because they can be – and often are – broken.

The above observations mean that gold is at the center of all commerce because it is the most liquid tangible asset in the global economy. Gold is the world's money, with silver a useful gold substitute that can also serve as money.

So what was true 100 years ago is still true today. Money is gold, but in recent decades fewer and fewer people now recognize this fundamental principle.

As a result, growing misconceptions about money have created the Money Bubble, which has evolved into the biggest bubble of our time. Given today's unprecedented expansion of credit and blind-faith acceptance of money-substitutes throughout the world, the Money Bubble when compared to the different bubbles that have wreaked havoc in recent years will be the most disruptive of all when it pops – as John and I explain in our new book.

Click here to buy The Money Bubble.

- Source, James Turk via Gold Money:

http://www.goldmoney.com/research/analysis/james-turk-launches-new-book-the-money-bubble-what-to-do-before-it-pops