Kitco Radio – Thu 28 Jul, 2011

Al & James Turk on Gold & Silver Surge

Al Korelin and James Turk discuss the recent surge in Gold and Silver prices, as well as the future of the precious metals market in relation to the current global financial crisis.

James Turk has specialised in international banking, finance and investments since graduating in 1969 from George Washington University with a B.A. degree in International Economics.

James Turk has written several essays and numerous articles on money and banking, much of which can be found on his Free Gold Money Report website. He is the co-author of The Coming Collapse of the Dollar (Doubleday 2004), which has been updated for a paperback version entitled The Collapse of the Dollar.

James founded GoldMoney together with his son Geoff Turk in 2001.

To learn more visit:

Al KorelinJames Turk

  1. On July 28, 2011 at 2:34 pm,
    Larry says:

    Al, you tend to be on the short side of what would be a reasonable level of ownership as an investment and hedge. My view is as we go higher and higher with Gold and Silver it demonstrates that the pushers of gold and silver being in a bubble are being proven wrong. This tends to deflate the fear factor and for certain the US market for precious metals has a long ways to go with ownership as an asset class less than 6 tenths of 1%. That is the astounding figure that is frequently left out of the equation. Foresure their will be ups an downs before this bull market is over but thier will be a lot more high highs than low lows.

    • On July 28, 2011 at 5:02 pm,
      Al Korelin says:


      I am starting to agree with you.

      Big Al

  2. On July 28, 2011 at 8:32 pm,
    Gundhi says:

    James Turk is always great to listen to if one is about to worry about one’s PM related investments. His smooth perma bullishness is great if it keeps anyone from selling when they should not. But unlike Trader Rog, during second half of April, James Turk was notably silent about toppiness and the coming correction. I think I’ve made up my mind on whose comment is more valuable if one likes to also take advantage of short- or mid-term moves.

    • On July 29, 2011 at 2:52 pm,
      silverbug (Dave) says:

      I agree – James Turk is the voice of calm for goldbugs with frayed nerves. It just shows how paranoid we goldbugs are that we are worried right now as gold sliced through 1600 an is making new highs every other day. Maybe it’s a sign that the price is not in a bubble yet. Soros’ “ultimate bubble is gold” phrase coming true(ultimate perhaps meaning “final” and/or “greatest” may still be a way off.

      • On July 29, 2011 at 2:58 pm,
        silverbug (Dave) says:

        However, I do think that James Turk as a perma-bull and unrepentant goldbug has been over-optimistic on the gold price in the past, like in 2008 when he called for $1500 that year and the price got to $1030 before creashing n the credit cruch to under $700 for a while. Was he looking for$1800 this Spring? I can’t recall clearly. Anyway, if he has been premature on timing, he was right on price with $1500, because we are now at $1600. Note also that we had £1000 in Sterling for gold a couple of weeks ago and we are very close to that now. That is somewhat historic because in the past, Stering was the reserve currency and gold Sovereigns representing 1 pound sterling were 0.2354 oz of gold and were minted on every inhabited continent of the world. Now £1is worth 1/1000 oz Au. That’s progress?

  3. On July 29, 2011 at 3:09 pm,
    silverbug (Dave) says:

    James Turk did not mention if he thought there might be a smack down in gold if they announce a sweet deal on the debt ceiling after all the hysteria and posturing. However, an increase in the debt ceiling shows bad management of the USA’s finances and is bullish news for gold surely in the longer term. The USA has no intnention to repay any of the pincipal of its debt. The annual deficit of $1.7 trillion on $14 trillion or so worth of debt is over 10%. It takes about 12% inflation to erode the value of that principal each year. Since 14T+ debt is unpayable already, inflation of 10%+ is essential to make it even more unpayable and the US not creditworthy. The bondholders have to take that haircut in currency depreciation as an implicit default even if there is not an explicit default. The debt will I guess go to $16, $18, $20 trillion, etc. Even under Bush a few years ago I recall the debt at $6 trillion (equal to the number of miles from here to the nearest star). It will soon be 3 times that, given a couple more years. There is no intention even to balance the budget, let alone pay back any of the principal on this debt. Same here in the UK. Budget surpluses are unlikely to occur n the western workd until there is a financial collapse.

    This debt ceiling farce and nonsense in the USA is a clear sign of bad management of the country. If a company’s board of directors behaved like that, would you buy its shares?

  4. On July 30, 2011 at 12:51 pm,
    Bradford says:

    I disagree with Mr. Turk that the historic ratio is 16 to 1. Between 1930-1945 Silver averaged $0.50, gold was fixed either at $30 an oz. Since silver was free traded it should have moved to approximately $2.00.
    Between 1951-1965 silver averaged $1.00 while gold was fixed at $35 an oz.

    The 16 to 1 ratio comes from the coin act of late 1800s. The US geologic survey says in the crust there is about 18.75 oz of silver for every oz of gold, however, other long time chemistry sources peg it closer to 30 to 1.