$1,800$2,000 Gold This Year; $30 Silver-Turk
Source: Mineweb, Lawrence Williams (5/19/10)
"He calls gold the 'canary in the monetary coal mine.'"
What may be even more encouraging for the general investor is that his forecast also suggests that the Dow Jones Index would rise to similar levels as the world finally pulls out of recession, with the gold price matching the Dow Index number. When asked at the end of his talk where he felt the gold price would be at the end of the current year, he reckoned around $1,800 to $2,000and predicted that the more volatile silver price would achieve a level of $30 this year.
Turk bases his forecasts very much on past performance; but, even as the prediction may seem extreme, to some, the sting in the tail is that he does not see these levels in the gold price, or Dow, as suggesting real increases in wealth. Rather, such an increase would serve only as wealth preservation as the purchasing power of most currencies is devalued in a hyperinflationary environment due to the huge volumes of fiat money being pumped into the market by governments attempting to stave off global recession. He affirmed that he felt it was folly for governments to think they could spend their way out of trouble.
He calls gold the 'canary in the monetary coal mine' and he agrees with GATA that governments and Central Banks have been trying to limit gold price increases over the years, in the same way that they try to control currency fluctuations.