looking at the year ahead, james turk believes the most important economic factor will be the increase in money velocity. if you remember the old equation mv = pq, large increases in the money supply don't translate into price increases if velocity remains low, as it is now, when everyone is sitting on cash. but he says the flight to liquidity will become a flight to safety. gold will benefit when people lose confidence in treasuries yielding near-zero percent interest.

he also predicts silver will outperform gold this year (again) and that mining shares will have a very good year as profitability improves due to lower costs of energy, labor, and other inputs, resulting in not only higher profits, but also higher multiples assigned to these stocks by the market. the interview is at the end of the first hour.

http://www.financialsense.com/