With increased demonstrations across the globe, today King World News interviewed James Turk out of Europe. Turk told KWN that banks and governments around the world are set up for a massive collapse, and they will go down together. Turk also discussed key markets and what he is doing with his own money right now. But first, here is what Turk had to say about the situation: “Have you seen the growing demonstrations here in Europe, Eric? So far, the protests have mainly been non-violent. They're protesting in the streets for good reason. Eleven of the seventeen countries in the EU are in a recession. With unemployment growing to record levels in some countries, certain key European nations are definitely in a depression.”
James Turk continues:
“Then there is the banking problem, particularly in Italy and Spain, where the banks loaded up with debt from their own government, which shows how their interests are aligned. It looks like these banks and their governments will go down together.
The same applies to Japan, UK, the US, and many other countries with zombie banks and over-leveraged governments....
“All of these factors make me recognize that holding physical gold is the right thing to do. Gold and silver are the only safe currencies in the world today.
I have been speaking with a lot of people about the precious metals lately, Eric, and one common theme emerges. Just about everyone is describing this correction as ‘brutal, painful, vicious’ or words to that effect. I can understand that negative sentiment, but I describe this correction differently. To me the best word to describe it is ‘long.’
Because it has been ‘long,’ this correction has been extremely frustrating. But we shouldn't let any of that negative sentiment cause us to take our eye off the ball, particularly at times like these. As investors, we need to think rationally, and avoid emotion. To do that, we need to focus on fundamentals and these remain very positive.
So every month I continue to do what I have been recommending to KWN readers for years. Every month I buy some precious metals, and will continue to accumulate them as long as they remain undervalued. Of late I've been buying silver. It's the better value.
Note how gold has been holding support at $1650, but silver keeps slipping further below $32. The shorts and central planners are throwing everything they have at the precious metals, Eric, but they are having a hard time trying to beat up gold.
Even their so-called ‘fat finger’ trade of 7500 contracts they put in on Monday didn't break gold. That trade was obviously made to ‘paint the tape', as Dan Norcini said in his KWN interview. Remember, this trade was strategically executed on one of the lowest volume days of the year, with much of Europe on a 4-day weekend. But even that huge paper trade could not break gold because the physical buyers were eager to scoop up real metal.
One last thing, Eric. Despite this correction and the negative sentiment, it is worth focusing on the fact that gold is up 6% so far this year, while silver is up 10%. It's been a great start to the year, which promises to be the 12th year in a row the gold price has risen.”
