“People are starting to understand they are being played with by these guys. Draghi came out last week and said he will do whatever it takes to preserve the euro. Then he said something to the effect of, ‘And believe me it will be enough.’
But there was an important proviso in his statement. He said, ‘Within its mandate.’ Within the ECB’s mandate he would act. The question is, what is the ECB’s mandate? They still haven’t decided that.”
Turk also added: “Interest rates really are a function of risk. There has been a lot of talk about gold’s swap rates, lease rates, contango, backwardation and all of that stuff, but it’s really pretty simple, Eric. The dollar has an interest rate, the euro has an interest rate, gold has an interest rate. They are all money.