James Turk on gold, silver, and problems with the banks

Greg Hunter of USAWatchdog interviews James Turk on the current goings on in the gold and silver markets. James argues that the current mismatch between the strong demand we’re seeing in the physical market versus the constant barrage of selling seen in the paper gold and derivatives will result in higher gold and silver prices, given that the fundamental factors responsible for gold’s gains over the last 12 years remain firmly in place.

As James states: “the problems we’ve been confronting the past several years haven’t gone away… governments have been buying time, but they aren’t coming up with any solutions.” He also ventures that more “bail-ins” and government bank rescues are coming, given that many of these institutions remain overleveraged and highly vulnerable to systemic risk. Another “Lehman event” or “Cyprus incident” remains a distinct possibility.

James sees gold and silver’s recent price action as similar to that seen in the summer and autumn of 2008: when liquidity concerns and bank failures drove the US dollar higher and metal prices lower (though not as low as many assets). The months and years the followed, however, saw substantial gains in gold and silver though, as traders and investors reacted to the flood of central bank quantitative easing. The period 2013-16 could be just as bountiful for gold and silver holders as that from 2008-2011.