Turk - Greek Default Imminent as Financial Crisis Propels Gold

Today James Turk informed King World News that a Greek default is imminent and investors should expect this rolling financial crisis to continue to propel gold higher. Here is what Turk had to say about the ongoing crisis and what to expect going forward: “I think the key item today is a Greek default looks imminent. The various parties are in the final stages of negotiating terms. They have now reached an impasse. Basically, the German government and the international institutions involved are insisting that the private lenders take a bigger loss and lower interest rate on the new bonds they are to receive.”

James Turk continues:

“Ironically, Greece itself is in the middle of this tug of war. But regardless of the outcome, what the negotiators are missing is that Greece does not have the capacity to repay even the reduced amounts being negotiated. So some kind of default looks inevitable, Eric, which in turn will ramp up the pressure on other over-leveraged governments around the world. The extraordinary demand for gold we have been seeing in Europe will strengthen because of the rolling financial collapse.

So far, January has been an extraordinary month and more and more people are starting to take notice of gold’s performance. We’ve had an incredible advance off the lows, but keep in mind we have an option expiry this Thursday so the shorts may attempt to keep the price of gold near the $1,650 level.

If we do get that manipulation back down to the $1,650 level, it will be a great buying opportunity for money on the sidelines which has missed the move so far and wishes to enter the gold market. So I expect any test of support at $1,650 to be solid for that reason...

Continue reading the James Turk interview

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