James Turk -- They're Not Going to be Able to Save the System This Time Around

When the spot price of gold is higher than the future price, it's a rare occurrence called "backwardation." James Turk from GoldMoney.com says, "The weird thing that has happened and it's never happened in history, when the gold price was driven down last year to its lows in June 2013, gold went into backwardation, and since then, it has been in backwardation more than 50% of the time. The only other times backwardation occurred were in 1999, with the lows in gold, and 2008, with the lows in gold. After both of those backwardations, the gold price soared."

Turk, who recently co-wrote a book called "The Money Bubble," goes on to say, "Sooner or later, we are going to go over the cliff as we did in 2008. They saved the system, the system in 2008, but I don't think this time around they are going to be able to save the system. So, you have to prepare for it."



James Turk is founder of GoldMoney.com, which operates the leading digital gold currency. He also publishes the Freemarket Gold & Money Report, an investment newsletter he founded in 1987. Previously, after a decade with the international department of Chase Manhattan Bank, he managed the commodity department of the Abu Dhabi Investment Authority. His media appearances include GoldSeek.com, CNN, Bloomberg, CBSMarketWatch, CNBC, Barron’s, the Wall Street Journal, and Financial Sense Online.