Tuesday, December 21, 2010

James Turk - Writing on the Wall, Hyperinflation is Very Near

 “Rising interest rates along with the surge in commodity prices that we have been seeing in the back half of this year is writing on the wall that hyperinflation is very near.  If anyone needs further proof just look at what QE2 is already doing.  The Fed is turning government debt that the market doesn’t want into currency which is the cause of all hyperinflation.”
2010 was another good year for the precious metals.  Although we still have two weeks to go, gold will be up for the tenth year in a row against the dollar.  The significant change this year is that a lot more people are paying attention to gold’s rise.  Because we are in stage II of a bull market now, as I said, you are seeing many more people take notice of both gold and silver’s rise.  The continuing talk about gold being in a bubble is complete nonsense, the stage III speculative phase is still far into the future.
The theme for the balance of this year and into next will be determined accumulation of physical gold and silver.  The reason for that is that the drivers for gold and silver remain the same, monetary problems around the world.  Individuals and institutions need a safe haven because of all of the monetary turmoil as well as ongoing crises.  With physical gold and silver they know their money is safe.
The interesting point Eric is that I think all of these crises are going to come to a head in 2011.  So far they have been developing serially, but everything is shaping up for a big bang.  The reason is that debt holders are finally waking up to the risks and demanding higher interest rates, which is something over-leveraged debtors cannot afford to pay. 
So the way I see it, we need gold and silver now more than ever, which is the same message the mining shares are telling us.   The strong accumulation that we are seeing in the mining shares bodes well for next year in terms of performance both for the metals, but in particular the mining shares.” 
Turk is correct, we are seeing tremendous accumulation in the mining shares.  It’s not that the commercials can’t wiggle some of these mining shares lower in price from time to time.  It’s just that the commercials and other professionals will be buying the shares from weak-handed sellers in each of those dips.  This is just the reality of massive professional accumulation as we move through phase II.  That’s just the way bull markets work.


  1. A second i saw the wether today i knew it was strange. Hot places get colder while cold spots get hot. ''and behold. i make all these things pass.'' in the bible it talks about the ice age. If I had money id build bomb shelters for family. If senaters and president could hand more money people would get prepared better for the ice age. If there be no ice age there would be bad stuff coming from economy. i have been wanting to learn about gold but dont understand where to look. Any help is preciated. I see homeless kids more than ever, dogs homeless, people angry, jobs hard. Hard times come to those who dont help prepare for winter. Or mama cat made the bread but no animals helped. guess what mr. ant and lazy cow. No food for you. As for me, I keep spreading message on other websites as I help folks get ready.

    - Sam

  2. Weird weather is caused by global warming, but don't expect to be told that because big business controls the media. A mini-ice age is possible if the Atlantic current gets screwed up by melting polar ice. Oh wait, the Repubs claim that the ice caps aren't melting....

    Don't invest in gold (or the stock market) unless you are rich and can afford to lose money. Buy second-hand gold and silver jewelry instead. I went back to stocking up on canned goods that last a year or two; you can't go wrong with that.


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