Interview: James Turk


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Michal Wroblewski interview for Golden Times with James Turk, about financial crisis, gold and silver.

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Interview: James Turk

  1. 1. "Golden Times Guests of Honor" James TurkMichal Wroblewski James TurkWe invite you to read Michal Wroblewski interview for Golden Timeswith James Turk, founder of, „Free Gold MoneyReport” and author of „The Coming Collapse of the Dollar and How to Profit from It: Make a Fortune by Investing in Gold and Other Hard Assets.”
  2. 2. Dear James,Im grateful that you wanted to share your thoughts with thereaders of Golden Times. Polish people are increasingly turning togold and silver as a hedge against crisis and an opportunity forfuture profit. Many people also know you and your companyGoldMoney. I want to talk to you about the financial crisis, gold,silver, GoldMoney and your life. Lets start with the economicproblems in the world...What do you think about todays financial system and why we aredealing with such a serious financial crisis? Can it get worse?The answer is twofold. First and foremost, there is too much debt in the world,which is bad enough. But the second part of this answer is that much of thisdebt is backing the various national currencies we use. This backing existsbecause some of this debt is on bank balance sheets and also becausecurrencies today largely rely upon government guarantees, for example,directly through deposit insurance and indirectly through central bank policies.And the sad fact is that most governments around the world are over-indebted.They have made too many promises, and borrowed too much money to try tofulfill them. Many of these promises will be broken, which is why the globalbanking and sovereign debt crises will get much worse in the months and yearsahead. Copyright ©
  3. 3. You know bankers environment from the inside, because early inyour career you worked in The Chase Manhattan Bank (now JPMorgan Chase Bank & Co.). What do you think of this environment?What did you learn there, and how did it affect your future?My banking experience was important, and I gained a lot from it. But thatexperience was not as important as what I learned from studying thetremendous scholarship of the Austrian School of Economics. Reading thegreat books of Ludwig von Mises, Murray Rothbard and all the other brilliantminds in the Austrian School was probably the best thing I ever did tounderstand how society works, and importantly, how money and bankingoperate at present. The works of the great Austrian School scholars was nottaught at the university I attended, unfortunately, so it took a few years of re-educating myself to understand that the Keynesian economics I was taught incollege was theoretically interesting, but in reality and from a practical point ofview, it was total rubbish.Why did you turn in the direction of gold and silver? What role dothey play in todays realities? Should Polish citizens also invest ingold and silver?I focused on gold and silver because they are money, and both have withstoodthe test of time. Monetary history teaches us that paper currency backed bynothing but government promises is eventually destroyed by misguidedgovernment policies and eventually becomes worthless. There have beendozens of currency collapses just since the Second World War. More arecoming. Consequently, everyone - regardless of where they live - should ownphysical gold, and if they want some diversification, physical silver too. Becausegold and silver are money, view the precious metals to be your savings. Copyright ©
  4. 4. In what form should Polish investors keep their gold and silver?They should buy physical metal, and there are only two ways to do that. Youbuy it and store it yourself, or you buy it and have a professional service store itfor you, which is the service my company provides.Why did you create GoldMoney? How does it work and whatexactly is its aim? What is the mission of GoldMoney?I founded GoldMoney in the late 1990s with my oldest son, Geoffrey, who is itsCEO. We created it to build a business offering people an economical and safeway to purchase and own precious metals using the convenience of theInternet.Since its launch in 2001 GoldMoney has become a leading provider of physicalgold, silver, platinum and palladium bullion to buyers worldwide. It is presentlystoring in vaults in London, Zurich and Hong Kong over €1.5 billion of preciousmetals owned by around 22,000 customers located in more than 100 countries.GoldMoney is based on the British Channel Island of Jersey, and regulated bythe Jersey Financial Services Commission.Customers resident in Poland can get started quickly with a Basic Holding,which can be opened easily online. If they like, they can later upgrade to a FullHolding if they choose to add more funds for larger metal purchases. Signing upis free and only takes a few minutes.GoldMoney’s success is based on two important factors. First, with ourgovernance procedures and regular audits, our customers have the necessaryassurances of integrity knowing that their metal is safe. Second, the Internetoffers unparalleled ease in terms of buying and selling metal, anddiversification in terms of storage options.Physical gold and silver are the bedrock assets in one’s portfolio. Consequently,you should not take risks with them. They need to be safe and secure, andGoldMoney enables its customers to achieve this goal, making GoldMoney thebest way to buy gold and silver online. Copyright ©
  5. 5. Is an account in GoldMoney equal to the actual possession of thepurchased bullion? There is any possibility to transport physicalbullion, for example, to Poland?GoldMoney customers have title to their metal, which means legally they arejust as much actual owners of physical metal as people who have chosen tobury gold coins in their back garden. The key point to grasp is that GoldMoneyhas no ownership claim on the metal we store for customers. The quantity ofmetals allocated to customers’ Holdings that is recorded in GoldMoney’sdatabase is always equal to the amount of metal that is stored in the vaults.This one-to-one ratio is always maintained and forms a key part ofGoldMoney’s governance model.GoldMoney offers physical redemption opportunities for gold and silver,including delivery of 100-gram and 1-kilogram (1,000 gram) gold bars that areproduced by Baird & Co. of London. Unfortunately, we cannot deliver theseBaird & Co. bars to customers resident in Poland, but we do deliver small goldbars to 20 other countries. Owners of 400 oz gold bars have the option ofregistering and taking delivery of their London Bullion Market Association GoodDelivery gold bars. Provided they own at least 30,000oz of silver, they can alsotake delivery of silver bars, but VAT is charged on silver in most countries. TheVAT is not levied on silver provided it remains in the vaults GoldMoney uses,which are bonded warehouses. These vaults also insure your precious metals. Copyright ©
  6. 6. Is having part of your resources abroad is a good idea? Is it asolution to today’s monetary problems? I always say that people should hope for the best but prepare for the worst.Clearly diversification of your assets across different jurisdictions is one way ofpreparing for the worst as far as economic upheaval in your own country isconcerned, though some countries are obviously safer than others. One wouldexpect that Poland’s 20th century history makes the Polish especially aware ofhow circumstances can change very quickly.GoldMoney can help people diversify across different metals and acrossdifferent countries, as we offer storage in London, Zurich and Hong Kong, aswell as provide physical delivery options. In addition, the fact that you canaccess your digital Holding from anywhere in the world via the Internet meansyou can move between countries and still remain in control of your metal.Why do you believe so strongly in gold and silver? What role theyplay in your life, do you also invest in them personally? I trust in physical gold and silver because I believe in the free-market. Gold andsilver became money because the market, i.e., people voluntarily interactingwith each other in society, made them money. The value of gold and silver stillreply upon the market, which recognizes the precious metals have compiled anoutstanding track record over 5,000 years. They have proven themselves timeand again as safe havens, and continue to do so, which is why their price hasbeen rising for more than ten years. Importantly, gold and silver remainundervalued, so for this reason, every month I buy some gold or silver to savemoney. Given my accumulated savings and the company I founded, they are animportant part of my life. Copyright ©
  7. 7. Maybe any last word to the readers of Golden Times?We are in the middle of some difficult financial times. I expect the globalfinancial situation to get worse because banks and governments haveborrowed too much money. As a result, the financial environment has becomerisky, and monetary history teaches us that the precious metals are the bestsafe haven to avoid monetary turmoil. For this reason, I recommend thateveryone should be accumulating physical gold and silver. Thank you verymuch for the opportunity to share my views with your readers, and bestregards,Thank you for this interview, greetingsRegards to all users of Golden Times,Michal Wroblewski Copyright ©