JAMES TURK: CENTRAL BANK GOLDEN CLIFF IMMINENT?
NOVEMBER 30, 2012
GoldMoney has released an interview with Chairman James Turk about his claim that central banks are holding less in their physical gold reserves than many assume. Turk explains the problem that central banks report gold and gold receivables as one line item on their balance sheets. This allows them to lease out physical gold in return for paper claims — posing the question of just how much physical gold is left.
He also discusses the Gold Money Index and the gold-based Fear Index. Both show that gold remains undervalued compared with historical norms. He also talks about how close we are to a “Golden Cliff”, where the western central banks stop lending out their gold, and what the systemic repercussions of this are likely to be.