James Turk: Forget $8,000, Gold Headed Much Higher!
- Please do all you can to protect yourself from this coming global monetary collapse. It will hit worldwide as the USD is the world’s reserve currency. As the USD declines, after a certain point, the rest of the world will follow via competitive devaluations. Strong Asian currencies will not be spared. If the Japanese allow the USD:Yen forex rate to drop to 50 (from current 81), it will devastate their economy. Besides, Japan is also suffering from massive debts that will not be repaid. Japan will therefore allow their Yen to decline along with the USD after a certain point. This will trigger competitive devaluations of the other currencies.
- Do not for a moment think that strong and sound currencies like Singapore dollar SGD or Aussie dollar AUD will not be affected. As other countries, especially China, follow the competitive devaluations route, no currencies will survive. It is the road to monetary hell ! Hard assets will rise in price. Hyper-inflation will kick in. Gold and silver, the bastion of real money for 5000+ years, will return with a vengeance! Make all effort to convert your savings to physical gold and silver. KingWorldNews.com :
James Turk – Forget $8,000, Gold Headed Much Higher
With gold near all-time highs and silver near multi-decade highs, today King World News interviewed James Turk out of London. Turk remarked, “Eric I have really been focusing a lot on what central banks are doing and how their actions might be impacting my long-standing forecast for the price of gold. You probably know back in 2003 I stated in a Barron’s interview that the Dow/Gold ratio would be 1 to 1 again sometime between 2013 and 2015. My thinking had been that gold would be $8,000 and the Dow would be 8,000, but now my thinking has changed.”
“I think that my gold forecast was too conservative. Given the way central banks are printing money when they are buying government debt, I think the 1 to 1 ratio is going to be reached at a much higher price.
People don’t understand how much wealth destruction has yet to occur as this financial bust that we are in works to its inevitable conclusion. In effect, the Dow has to lose 90% vs gold. This wealth destruction is going to devastate a great many investors, in fact most of them will never recover from this event.
As I said earlier Eric, my thinking has changed as we have been going through this cycle. This time around is not going to be like the gold bull market of the 1970’s. The dollar is going to lose its status as the world’s reserve currency. This is fundamentally different than what occurred in the 1970’s.
The US government has been running some of the largest deficits in history. That means a lot of dollars are going to be created by the Federal Reserve to fund this newly created debt. Recently we have been focusing on the US dollar and I want to be clear that I expect the dollar to drop to levels never seen before in history, and the scary part Eric is that it could do it very, very quickly.
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