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Interview With James Turk: Gold Is Our Defense Against the Fiat Currency Graveyard

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Precious metals expert, James Turk, believes that we are witnessing the decline of the world's major fiat currencies, and that gold will likely be remonetized in the aftermath.

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Editor's note: James Turk is founder and chairman of GoldMoney which offers investors an easy and inexpensive online solution for buying precious metals with international storage options.

James is one of the foremost authorities on precious metals and has long offered market forecast commentary including co-authoring "The Coming Collapse Of the Dollar and How to Profit From It" with John Rubino of DollarCollapse.com. He has built his career on decades of experience in international banking and finance spending many of those years living outside of the US.



"The rule of law has basically been thrown out the window. Money printing is the order of the day. And when politicians take control of central banks, which they have done in the United States and they are also doing in Europe, that basically destroys the currency. It puts the currency on the road to what I call the Fiat Currency Graveyard, so I expect there are going to be massive currency problems as we go forward. The financial crisis that we have been dealing with for the last several years has not been solved."

So cautions James Turk, widely respected precious metals expert and founder/chairman of GoldMoney. In this detailed interview (recorded in June), Chris Martenson and James explore the probable outcome of the current US debt-ceiling operatics, the likelihood of future Fed money printing, and strategies for preserving wealth. In short, James believes we are witnessing the decline of the world's major fiat currencies, and expects gold to be remonetized in the aftermath.

James explains why he expects:

  • The US government to raise the debt ceiling in August, which will require the Federal Reserve to print more money in order to soak up the new debt, sending gold and silver prices much higher this summer.
  • Holders of fiat currencies to experience increasing losses in the purchasing power of their wealth; contrary to those who hold precious metals, who will see the reverse.
  • This pattern of currency devaluation to be similar to the many other examples seen throughout monetary history. In short, the "unthinkable" event of a dollar collapse is a much more probable event than most consider.
  • Precious metals to be an excellent vehicle for preserving purchasing power through this next transition, and whatever future currency emerges, their historic role as money to be restored.
  • The end of the bull market in precious metals is years away. We'll know its ending when holders of PMs begin trading them for other assets (e.g. property, securities) that have become overly undervalued.

Click here to listen to Chris' interview with James Turk (runtime 49m:11s):

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Or start reading the transcript below:

Chris Martenson: Welcome to another Chris Martenson.com podcast. I am your host of course, Chris Martenson. And today we have the distinct privilege of speaking with James Turk, founder and chairman of GoldMoney which offers investors an easy and inexpensive online solution for buying precious metals with international storage options. James is one of the foremost authorities on precious metals and has long offered market forecast commentary including co-authoring The Coming Collapse Of the Dollar and How to Profit From It, with our good friend, John Rubino, of DollarCollapse.com. He has built his career on decades of experience in international banking and finance spending many of those years living outside of the US, which gives him a critical advantage to look at our economy with an outsiders eyes. I am really delighted to have you here, James, and I have a tall stack of questions prepared for you. Are you ready to dive in?

James Turk: I sure am, Chris. It is a pleasure to speak with you.

Chris Martenson: The pleasure is mine. So, short-term, what I'm really interested in here is to start diving into where gold is going to go short-term, where do we buy gold? Do we buy it now? Over the short-term people are very concerned about the price of gold and where it's at and where it might be headed. So with QE2 ending here at the end of this month, -- we are in June right now -- how do you expect the precious metals to be impacted?

James Turk: Well I think the precious metals are going to do quite well this summer. And I don't agree that QE2 is going to end in June. It may "end" in June but it is not going to end on August 2nd because on August 2nd the US government is going to increase its spending limit probably by $2 trillion and the Federal Reserve is going to have to step in and start buying some of that government debt and run the printing presses again with all this new money creation. And I think that is what is going to light a fire under both gold and silver this summer.

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No positions in stocks mentioned.

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