Gold is in a 2nd stage of a bull market. We will see a more rapid price appreciation than in the past years. Price target untill 2015: 8000 Dollar. Price manipulation has come to an end. Gold as natural alternative to currencies. Chances of hyperinflation 100%. Gold prohibition possible.
By Michael Mross
For James Turk its quite clear, that the price of gold is maniupulated. “By doing so it makes the Dollar look better because gold is the only natural competitor towards the Dollar. If you keep the goldprice low it makes the Dollar look better then it really is”.
According to Turk, the caping of gold won’t last for ever. Just like the gold caping in the 60ies finally gave way in the 70ies its quite clear to him that the goldprice caping of the past serveral years if giving way here. Thats why the goldprice is starting to rise so rapidly.
Turk:”Goldprice manipulation is ending now, because they are finally losing control. Some central banks that not agree with the caping of gold are starting to buy right now. The concerns about the dollar are rising very rapidly and as a natural alternative people are turning to gold because there is no save currency anymore.
Back in the 70ies you could buy the Deutschmark, the Swiss Franc, - now the Deutschmark doesn’t exist, the Swiss Franc is now tight to the Euro – and given the fact that the Euro is based on Dollar reservers, the Euro is going down with it. So the only alternative currency now is gold and silver.”
Turk believes, that the fair price for gold would at least double from the current level. His longer term price forcast between 2013 and 2015 is 8000 Dollar per ounce, a prognosis that he did already in 2003. If gold went from 35 $ to 800$ it could well go from 350 (in 2003) to 8000$ says Turk.
“In order to protect yourself you have to go to gold”, says Turk. “The fact of the matter is that there is a lot paper out there and very little gold. It only takes a small amount of people to move into gold to have a big impact on the goldprice. Just like it did back in the 70ies: Gold finally broke free at 35 Dollars and went from 35 to 200 in the course of three years. My guess is that in the next couple of years gold ist going to 2000-3000$ before its going to 8000$ in 2015.”
According to turk a gold confiscation could be possible if the price goes too high and reflects an alarm signal that there is something wrong in the financial system. “America did that in 1933 but they didn’t prohibit ownership outside the united states. And there may be a prohibition sgsin in the future. So you need to diversify geograficly, different countries, different political systems and hold your gold at different places around the world. In that way you can medicate the risk of confiscation.”
Turk believes that the chances of hyperinflation is 100%. The US is on the road to hyperinflation. They are doing things that other countries that have hyperinflated their currencies have done. They spended to much money, forcing it to borrow more money than the market is willing to lend to them. In that case it is turning to the central bank and they are buying that debt and turn it into currency. And that is what ulimately destroys a currency and leads to hyperinflation. There is a fancy name: they call it Quantative Easing, but the reallity is, that its printing money.
