Eric King:  “In a sense, James, the Fed, the central banks, Western governments, are gambling on this price suppression scheme and saying, ‘We’ve got to get people on the physical side to start selling.’  If they can’t accomplish that and we just end up with these mine closures, all of that production that disappears has to be vacuumed out, in addition to what’s already being vacuumed out, of those Western central bank vaults.  So, if they can’t get the physical selling to start happening, they are in trouble here.”

Turk:  “Yes, that’s exactly right.  And you are bringing up a good point:  The supply of gold is not just what comes on to the market every year from production.  The supply of gold is everything that exists in the above ground stock, which is basically all of the gold that has been mined throughout history....

Continue reading the James Turk interview below...


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“I believe that above ground physical bullion is in strong hands, but I think those behind the gold price suppression scheme think that they can probably dislodge some of that physical (gold), in order to keep the price contained.

But watching what’s happened here over the past 10 years -- every time the price suppression has pushed gold lower, the demand for physical has picked up.  It’s picked up in the coins, bars, and you see the big central banks buying.  There was an announcement that South Korea, a medium-sized central bank, just added to its gold position.

So the gold price suppression scheme players don’t understand that by lowering the gold price they are actually increasing the demand for metal.  And they are making their job that much harder in terms of this managed retreat that they have been doing for the past 12 years in trying to keep a lid on the gold price.

My expectation is gold is not going much lower.  We are in the process of putting in a bottom, and I think this is going to be long-lasting bottom simply because everybody knows that gold has good value down here. 

Carrying this logic into the mining shares, the same logic applies there.  These shares are so cheap.  So I think the mining shares are also at that level where you are going to start seeing a lot of serious money coming in to the sector.  You’ve got shares at valuations I’ve never seen in my 45-year career.

This is even cheaper than they were back in the late 1960s, and early 1970s, when the US government was trying to keep the gold price from rising above $35 an ounce.”

Eric King:  “James, what are you hearing about the physical market?”

Turk:  “It’s still looking very, very strong.  There’s no indication whatsoever that the physical buyers are going to the sidelines.  You’ve got the individuals and the central banks in there (buying).  I think you are going to start seeing more and more central banks coming in and buying gold because they see the various problems that are happening in terms of monetary policy. 

Look at what happened with the Federal Reserve this past week:  They’ve expanded their balance sheet, Eric, another $18 billion.  Meaning that the balance sheet of the Fed, for the first time, is now over $3.1 trillion.  This is all monetary debasement and this monetary debasement is ultimately going to reflect itself in higher precious metals prices.”

© 2013 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.

This is a powerful audio interview with Turk because he gives KWN listeners his thoughts on the gold and silver smash and what has taken place in the mining shares.  The tremendous audio interview with James Turk is available now and you can listen to it by CLICKING HERE. 

The interviews with James Turk, Jim Sinclair, John Embry, Gerald Celente, Dr. Stephen Leeb, Rick Rule, Ben Davies, Andrew Maguire and Marc Faber are available now.  Also, be sure to listen to the other recent KWN interviews which included Egon von Greyerz, Felix Zulauf, Eric Sprott and Art Cashin by CLICKING HERE.

Eric King

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© 2013 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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