Gold rises—prediction experts speak out

James Turk (James Turk): Founder and Chief Director of Goldmoney, and author of *Money and Freedom*.

The following are his remarks during a media interview this week:

Host: COMEX gold inventories have fallen by 30% in less than 9 months. I’d like to hear your thoughts on gold first, and then we’ll talk about silver afterward.

James Turk: The decline in open interest reflects that more and more people have realized that this is, in the first place, a rigged game. If you’re going to participate in a rigged game, then you must be fully aware of it. From a trading perspective, you can only decide for yourself when to buy and when to sell—choosing your own entry and exit timing. As gold and silver eventually rise again, you’ll see open interest increase once more. Unless, in the meantime, something like a COMEX default occurs—such as an inability to deliver physical gold or something along those lines.

Gold is currently in a short-term adjustment phase. Many people are enjoying summer vacation, watching the World Cup, and keeping busy with all kinds of things, but this is actually the time when you should think seriously. At some point, this current round of short-term downward trend will end, and then it will turn back upward. Gold has always been in a long-term bull market. Ever since the Federal Reserve was established in 1913, it has been like this—back then, gold was only $20.67.

Gold will fluctuate up and down because the supply-and-demand relationship between gold and the dollar is always changing. But in the long run, it is always upward, because the dollar has been continuously losing value. I find it hard to believe that once [Federal Reserve Chair] Powell becomes chairman, he can change more than a hundred years of history.

Now let’s talk about silver. I had predicted that gold would fall below $4,000 and that silver would fall below $60, and this scene has already happened. The market has entered a phase of total surrender, and many people have completely given up. They say, “I don’t even want to listen to anything about gold or silver anymore.”

From the perspective of market sentiment, there are already many signs showing that the market has either already bottomed out or is extremely, extremely close to the bottom.

Even mining companies can still generate fairly solid cash flow at current gold and silver price levels.

Now look at the outside world. Many countries in the world are facing increasingly severe fiscal problems. Each year, fiscal deficits continue to grow, and government spending is becoming more and more out of control. Eventually, one day, the market will turn to real money. And in the true sense, real money should be gold and silver. If you put something in a safe and open it 100 years later, what is the most capable of preserving your wealth? In the end, it always comes back to the same answer—gold. Compared with gold, silver is valued lower. You must plan your investments with a long-term perspective, and don’t put all your attention on next week or next month.