Where to now for Gold? Peter Schiff, James Turk and Richard Russell weigh in

The three men most well-known to the broader investment community seeking a fair shake and honesty from the financial industry, Peter Schiff, James Turk and Richard Russell, all have recently gone on the record as raging bulls on the gold price in the coming weeks and months.

Each man has his unique style of communicating the fundamentals underlying the move in the precious metals; the widely misunderstood concepts regarding money, in general; and why it’s vital to act now to protect wealth from monetary events expected to materialize one way, or the other—with both outcomes varying in degree of tragedy.

Either politicians and monetary authorities will standby idle and let nature takes its course regarding irreparable insolvencies of governments and many of the largest financial institutions, globally, or they will attempt to fix only the symptoms of a malaise that cannot be ultimately fixed without profound consequences, which are inevitable anyway, but will take on a different guise.

All told, both outcomes point to gold as a no-brainer asset of choice during the widespread and profound awakening coming soon, globally, and will most likely avail is itself in earnest some time by New Year.

Starting with the man with the most stamina and passion for waking up the mainstream investor: Peter Schiff of Euro Pacific Capital.  Schiff possesses the business sense to promote almost any investment, making a living while guiding his clients through both calm waters and avoiding tidal waves.  A win-win situation for him and his clients.

“ . . . gold is going to go higher because people want refuge, Schiff told King World News, yesterday.  “In fact the other safe havens in the currency world, like the Swiss franc or the yen, the central banks there are trying to undermine their currencies.”

Investors thinking that they can avoid the decision to acquire the politically incorrect asset, gold, by buying Swiss francs, instead, will ultimately be disappointed, according to Schiff.  A very strong currency can be almost as troubling to portions of an economy than a weak one is other part of the economy.

Both Japan and Switzerland have taken measures to halt the rapid appreciation in its currencies against the two major reserve currencies of the U.S. dollar and euro.

“I mean the Swiss are actually thinking about pegging their currency to the euro,” Schiff continued.  “One of the reasons people were buying the Swiss Franc was to get out of the euro.  Now they are threatening to turn the Swiss Franc into the euro.  So what’s the one asset that central banks can’t print?  That’s gold and so gold is the last man standing and everybody is going to be piling into it.”

Next, James Turk of goldmoney.com, the man who is presumably closest to the bullion market than either Peter Schiff or Richard Russell given his experiences of running a bullion storage business on a day-to-day basis.  Turk has been as accurate with his short-term predictions as one can with the information, deep knowledge and vast experience he possesses.

“Gold has been rising against all national currencies, and that’s significant,” Turk told IB Times, Monday.  “Politicians and central bankers are making decisions that debase national currencies, and the resulting bad monetary policies they are following are causing the gold price to rise.”

Turk continued, “When there are problems with a national currency … (investors) begin to worry about the value of their money, whether they’re going to lose purchasing power because of inflation or other problems. As a consequence, they look for safe havens.”

And last, but certainly not least, Richard Russell, the publisher and editor of Dow Theory Letters, has been successfully guiding subscribers of his investor newsletter for more than 50 years.  The 87-year-old survivor of the Great Depression, WWII, and many recessions as well as a few inflationary scares told his readers to hunker down like no other time of the past 65 years.

“ . . probably 90 percent of living Americans have never seen or lived through what I call really ‘hard times,’” Russell noted in his newsletter last week, implying that many investors suffer from a term floating around recently, a normalcy bias.

“When chaos reigns, people look for certainty,” he continued.  “When all is lost, only one item stands supreme and has been supreme for thousands of years. That item is gold.”

And if it wasn’t for Russell’s stellar reputation as a man of rigorous reason and steady hands, the notion of the gold price reaching the cost of a used Ford sedan at the end of the bull market in the world’s safest of safe havens would appear to most unfamiliar with the true meaning of money as ridiculous.

“At 2,000 [gold price], the next objective would be 2,500, and from there, 5,000, and from 5,000 – 10,000.  As gold marches higher, it’s playing the death knell for fiat money. And every central banker knows it.”

That statement, coming from the Godfather of financial newsletter, is not to be taken for the purpose of entertainment.

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