"What do I get if I own gold or silver today?" What you get is the fact that you own a tangible asset that's historically always been money, and
there's no counterparty risk, which is increasingly important when you're in a financial bust like we've been in the past few years. When you have
no counterparty risk, you own a tangible asset. The value of that asset is in the asset itself. It's not based on someone's promise.
I remember as a kid, growing up in the 1950s, that my parents could go into the gas station and with two silver dollars fill up the family car. And
today, with two silver dollars, you can still do that, but only when you look at silver at the face value of the silver itself, not with the dollar
amount on the coin. So it's a good example that silver does have usefulness because it preserves purchasing power over long periods of time. And that
to a large extent, this rise in the price of silver is really just a decline in the purchasing power of the dollar. Maybe we're going to see more and
more people moving into the precious metals for that simple reason that you alluded to, the fear factor, that people want to preserve what they
What's going to have to happen is understanding that Americans just can't afford what we've been told we were entitled to all these decades. We're
broke. If we are just going to keep kidding ourselves and printing money, keeping interest rates down... The bankers love it. Wall Street loves it.
The politicians love it. But as we get broker and broker and broker, we're probably looking at another flash crash, except that will be real, out of
nowhere. Things are just going to tank at some point. A collapsing dollar and soaring inflation is not good for our markets. As it is already, the
real estate market, with all that's been done, is a total disaster. And even now, the jobless claims, the employment situation in the United States,
instead of showing signs of improving, it's starting to tank again. This is after all this quantitative easing and stimulative measures. The standard
of living, I'm afraid, I hate to say this, is just going to fall apart in the US
Bill Murphy (GATA)
I wholeheartedly agree with the topics discussed in this interview. While I disagree on some timing issues, like the collapse of the US dollar, the
general trend is very clear, debasement of the dollar and the rise of gold despite manipulative forces.
In my view, the dollar is likely to rise short term in response to the trouble in Europe which will result in commodity prices dropping. Soon
afterward, in my view, we will see the flight from the dollar as QE3 unfolds and debasement continues. As always, timing of these events is difficult
or impossible to predict, but this autumn looks ripe for the final US dollar rebound, or if you prefer, dead cat bounce.
Bill Murphy and James Turk discuss gold price manipulation
Bill Murphy, Chairman of the Gold Anti-Trust Action Committee, and James Turk, Director of the GoldMoney Foundation, talk about GATA’s ‘Gold Rush
2011’ conference in London from August 4-6. Murphy also gives a brief overview of GATA’s mission and activities, and details about some of the
group’s past successful conferences in Durban, South Africa and Washington, DC.
They also discuss Murphy’s one (and only) appearance on CNBC, and how and why despite GATA’s successful predictions with regards gold and silver
prices over the last decade, the mainstream media continues to ignore GATA and its work.
They converse about how “the gold cartel” works to suppress the price of gold and silver, and the recent short squeeze in the silver market.
According to Murphy, certain large banks and central banks are working to suppress the prices of these metals.
They talk about how the world’s central banks do not have the gold they claim to have, and how central bank accounting techniques are deceptive.
Murphy and Turk also observe that the policies of the US Federal Reserve and the US government are setting precious metals up for further advances.
Furthermore, they talk about how the US dollar could collapse, plunging the US economy into hyperinflation. Murphy argues that the big silver shorts
are in a particularly vulnerable position, and that the Comex and the bullion banks are not acting as honest brokers of futures contracts.
They examine how the silver futures market remains in backwardation, and how intense demand for the physical metal could render the paper market
irrelevant. Murphy and Turk also discuss whether or not precious metals are fairly valued today, or whether or not they constitute a “bubble”.
They talk about how mainstream investors still haven’t been buying precious metals, and how huge price appreciation in the metals and the shares are
expected when the public starts buying in a big way.
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