Midas Touch - Goldmoney.com's James Turk believes today's gold price is cheap and can only go higher
Barron's (Subscription required)
By Sandra Ward
13 October 2003

An Interview With James Turk - These are glorious days in the north country of New Hampshire, which Turk, publisher of the Freemarket Gold and Money Report, calls home. Equally glorious has been the performance of gold since we last checked in with the longtime gold authority, who also happens to be founder of Goldmoney.com, a company intent on establishing the metal as the dominant currency in cross-border transactions. He correctly called gold's push higher last year and now sees the yellow metal reaching $400 an ounce by the end of this year. Why the bright prospects? Here's why.

Barron's: You seem fairly confident that gold will continue to climb higher. What leads you to that conclusion?

Turk: One of my major contentions has been that you are better off holding gold than the Dow Industrials. That surely has been the case the past few years and that trend is only beginning. When we last spoke, I said gold was going to move to beyond $325 an ounce by the end of last year, and it did. That was very significant. It was as significant as gold tripling to more than $100 an ounce after President Nixon took the dollar off the gold standard in August 1971. What you have is a huge six-year base of accumulation.

Barron's: Meaning?

Turk: Gold has formed all the classical patterns, including a selling climax after the Bank of England announced in 1999 it would sell half its gold. Gold has been accumulated by so-called strong hands, and it is going to take much higher prices to shake that gold out of those strong hands. Looking at gold purely from a technical point of view, one has to be bullish.

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