James Turk continues:

“The story goes that a large French bank could not obtain funding and was on the verge of collapse.  When a depositor withdraws money from a bank, the bank has to turn to other sources of funding or reduce its assets.  Given the nervousness about insolvency concerns at many banks today, banks have few funding alternatives.  Consequently, last week’s stop gap measure by the central banks is probably going to be short-lived.

Things aren’t any better on the other side of the Atlantic.  I see that the US government debt increased $310 billion in the first 2 months of this fiscal year.  This is approximately a $1.9 trillion increase.  Clearly these kinds of numbers are not sustainable.  Something has to give as we watch this slow motion train wreck, and in my view it will be more problems for the world’s currencies as confidence in governments and central banks continues to erode.

For KWN readers globally, concerns about the collapse of the system are very real because governments have not yet come to grips with the fact that their capacity to borrow is limited.  History has shown that over-indebted countries always destroy their currency.  When it comes to the future we can only make informed choices and in my view physical gold and silver are the right place to be to weather this worsening storm....

Continue reading the James Turk interview below...


To hear legendary Jim Sinclair discuss which company he invested

$32 million of his own money in and why click on the logo:

“Even though I’ve been saying this has been coming, last week was truly frightening with the banking system ready to fall into the abyss.  Had the central banks not stepped in it would have been a Lehman moment.  Sadly they haven’t solved the problem, they have just bought time and whether that time is one or two weeks or maybe a month, we will soon find out.”

When asked about the action in gold and silver, Turk stated, “Gold and silver often have a slow period beginning at Christmas and extending through the New Year Holiday.  The tight trading range and low volumes in both gold and silver make it appear that maybe the quiet holiday period has already started.  Nevertheless, it’s important to note that both gold and silver are holding well above their September lows.

It is also important to note that gold and silver have had an upward bias this past few weeks.  So the bottom line is we are very, very close to an upside breakout in both precious metals.  Gold needs to clear $1,750, while silver needs to get above $33.25 or thereabouts. 

When they clear those levels, a great deal of money will come off the sidelines and enter those markets.  And I haven’t changed my view that silver could more than double here over the next several months.  There is that much power under the market.”

© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Eric King

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© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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