GoldMoney has released an interview with Chairman  James Turk about his claim that central banks are holding less in their physical gold reserves than many assume.   Turk explains the problem that central banks report gold and gold receivables as one line item on their balance sheets. This allows them to lease out physical gold in return for paper claimsposing the question of just how much physical gold is left.

He also discusses the Gold Money Index and the gold-based Fear Index. Both show that gold remains undervalued compared with historical norms. He also talks about how close we are to a “Golden Cliff”, where the western central banks stop lending out their gold, and what the systemic repercussions of this are likely to be.

Full interview below:



    • That’s one of them, alright.  The other is “vertical”.  😉

      It’s far too easy to get overly focused on the day in and out price moves.  These are basically irrelevant.  It’s MUCH less about price than it is about ounces.  Just ask anyone who bought silver at $5 or gold at $300.  Do any of them complain about not getting a $4 silver price or a $250 gold price?  Nope.  Just buy what phyzz you can, when you can, and you will be FAR better off and financially more successful than the folks who keep everything in dollar denominated paper assets.
      Turk also mentions the possibility of $8,000 gold and $400 silver.  Egads!  That’s a 20:1 ratio and a LONG way from the current ratio of about 51:1.  Seems to me that if gold did go to $8,000, anyone who bought it around $1800 today would have a gain of about 440% while someone who bought silver at $35 today would have a gain of 1140%.  WOW!  That would be over 2.5x the profitability for silver vs. gold.  Makes me want to be all in silver and have no gold at all.  😉

  1. There might not be a lot of physical gold left because a lot of these “gold” bars were filled with tungsten. Most of the paper gold aren’t backed by the physical gold because there aren’t enough physicals since the cartel is using paper to suppress golds price.

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