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Ing:  “There has been a great deal of noise, but amid that noise you have to separate the rhetoric from the reality.  This on-again, off-again quantitative easing is just more of the rhetoric.  It reminds of the 1970s, when there was ‘peace in Vietnam.’  Well, it took 3 years to have peace in Vietnam.

But every time peace was declared, the stock market went up 100 points, and then it would go down when it wasn’t going to happen.  It feels like the same thing with quantitative easing....

Continue reading the John Ing interview below...


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“Is tapering going to happen?  Yes, at some point it will. 

Meanwhile, we have the Dow Jones and S&P recently making new all-time highs.  At the same time, all of the risk assets such as gold and platinum are trading at their lows.  So investors think that trees will grow to the sky, but we realize that’s not so.  This is why it is so important for investors to look at the fundamentals right now.  The US dollar has not rallied as it should.  It should be over 83 or 84 on the US Dollar Index if this was a great bull market.  Instead, the Dollar Index is trading at 80.29.

The 10-Year Treasury yields have been edging higher, and that tells me international investors are very concerned.  The 10-Year Treasury is now at 2.85%, possibly headed to 3%.  If it breaks above 3%, the 10-Year will head to 3.25% and then to 4%.  The reality is this is kind of scary, Eric.  With all of that as a backdrop, I still think gold has made its lows and the mining shares are thoroughly sold out. 

China has been the fastest growing economy in history.  We just don’t know what is happening in China from a financial point of view.  Right now the US dollar is the pinnacle of the world’s financial system.  But the problem with the US dollar is it is being printed ad nauseam, like a Xerox machine.  This has devalued the dollar.  It certainly has helped the Americans, but it hasn’t helped the Chinese, who are sitting with some $3.7 trillion of foreign exchange reserves.

So the Chinese have been buying hard assets such as companies.  They have also been buying copper and gold.  I visited the Shanghai Gold Exchange in 2009, and today that futures exchange is bigger than the Comex.  Most importantly, if you look at their deliveries, they have delivered 8,655 tons of gold since 2009.  That is a staggering amount of gold because that’s more gold than the Americans are supposed to have at Fort Knox.

The Chinese have consumed somewhere in the neighborhood of 1,700 tons of gold in just the first 8 months of this year.  This works out to the Chinese consuming all of the world’s production in one year.  Where is that gold going?  I believe that gold is going into their foreign exchange reserves.

The renminbi is already the second largest currency used in global trade now.  So the Chinese are moving to make the dollar antiquated.  The renminbi will eventually have some sort of gold backing.  I think that role for gold will be very important for China’s growth.  We also see China flexing its muscles militarily, but we have to stay focused on China’s role in the global financial system, and that’s definitely growing, and this is good for gold.”

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