In regards to the pending PAGE(Pan Asia Gold Exchange) launch in H1 2012, James said, “If it’s launched the way they [the Chinese] say they’re going to launch it, and according to the mechanisms and systems they say they’re going to introduce through it, I think it will have a profound impact [on the price of gold]. The reason is that the exchange is very close to physical metal…
There are two types of gold–there’s physical gold and there’s paper gold, and the closer you are to physical the higher the price is. That’s why for example the Sprott Physical Silver Trust is trading at a 30% premium to the Comex price–the reason is everyone knows the Comex price is paper, and that there’s really physical silver in the Sprott Physical Trust. The PAGE exchange will probably have a similar type of impact…It will help make people understand there really are two different markets for gold–a paper market and a physical market.”
On the value of the precious metals and expectations for 2012 James commented, “With regard to gold and silver themselves, I think we’ve seen the low for the year. I think we’re going to clear $2,000oz. on gold before too long and I think $100 silver is quite reasonable. Something over $2,000oz. this year seems likely, and something over $50oz. perhaps as high as $100 per oz. on silver seems to me the most reasonable course...
The mining stocks are still on the runway [ready for takeoff]. The runway is this trading range they’ve been in for the last couple years now…Eventually they’re going to break out of these trading ranges to the upside, and they’re going to take off. Hopefully it’s going to be the first quarter of this year because I’m expecting much higher prices on both gold and silver as we work our way to the end of the first quarter.”
James concluded by saying, “The key point Tekoa is that gold, silver, and the mining stocks are all undervalued assets, and you rarely go wrong when buying undervalued assets–but sometimes it requires a lot of patience.”
The full read of Exclusive Interview – James Turk: “There’s Physical Gold and Paper Gold–The Closer You Are to Physical the Higher the Price” is at http://bullmarketthinking.com/exclusive-interview-james-turk-theres-physical-gold-and-paper-gold-the-closer-you-are-to-physical-the-higher-the-price/
