In this exclusive interview, James Turk answers questions from our readers about the gold and silver market and his outlook on the economy.
SMN: So something I often tell my listeners and readers is that they need to stop stressing so much about the nominal price of gold and silver, and they need to start considering their wealth in ounces of real money.
James: I think that’s a very good strategy. Because when all this is said and done at the end, you’re going to be counting wealth in terms of ounces and grams. And, therefore, accumulating physical gold and physical silver is, I think, the ideal strategy, given the fact that the assets are so undervalued. And given all the problems we have with the monetary system worldwide. It’s not just the dollar that’s in trouble, but it’s the British Pound, the Japanese Yen, the Euro, and pretty much every other currency around the world.
And when you have currency turmoil, all you have to do is look at monetary history and conclude that yes, gold and silver, physical gold and physical silver are the place to be to provide that safe haven from that monetary turmoil. And they are a safe haven because, in contrast to the national currencies which are just a bookkeeping entry based on some banks or some government’s promise, physical gold and physical silver, the value of them — first of all, they’re tangible assets, and they don’t have counter party risk — and the value of them derives from the preponderance of people around the world who understand gold and silver’s usefulness as money.