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Ing:  “What we have been seeing in the past couple of weeks is that no one ever promised that the ‘exit’ would be pain-free.  Now we have seen this not only in emerging markets, but also in Western markets....

Continue reading the John Ing interview below...


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“As far as emerging markets, what we are seeing are devaluations, and of course interest rates moving up in those countries.  In Ghana, for example, the interest rate went up 2%.  Some might respond, ‘So what?’  Well, their interest rate is now a staggering 18%.

So, while it’s terrible to be lending money in Ghana, the Fed tapering is really creating these consequences.  And this is only just the beginning, Eric.  Also, the volatility in the currencies right now is quite dramatic.

If we turn to the US, the Americans have strapped on something like $7 trillion of additional debt, and the United States now owes $17 trillion.  That’s more than all of the presidents combined over the 227-year history of the US.  It is astounding to think that in only five years the US has done this.

So the ramifications of this ‘exit’ are impacting currencies, stocks, and interest rates.  We have already had $3 trillion in stock market capitalization wiped out.  It is amazing that just a $20 billion tapering has been enough to cause all of this chaos around the globe.

As this global storm gains momentum, the classic refuge will once again be gold.  It’s no coincidence that since the start of 2014, gold has already moved up roughly 5%.  More importantly, the leading indicator, the mining shares, are up almost 15%.  We have seen 20 CEO changes in the mining sector as well as a move to making money money gold.

But my sense is that the gold price has fallen to levels where most of the industry is losing money.  That, to me, was the sign of a classic bottom.  I fully expect for gold to break above the $1,270 resistance.  This will set up the next short-term target level of $1,325, followed by the big move to $1,550.

When gold eventually breaks above the key $1,550 level, that is when the street will start talking about $10,000 gold again.  But we’ve turned the corner and all the fundamentals are in place for higher prices, especially with this second tapering action from the Fed.  The bottom line is that the next few months will be an exciting time for the holders of gold and the gold producers.”

Eric King:  “The global chaos has slowed a bit in the last couple of days.  Is this the calm before the storm?”

Ing:  “We are nowhere near the chaos that I expect.  The markets are headed lower from here, so any upticks from here are going to be temporary.  I expect some big downside for global stock markets.  I also believe the key psychological level of 80 will be broken on downside of the US Dollar Index.  The dollar breakdown will just accelerate the global turmoil, and gold will become the classic refuge it always has been as the crisis intensifies.”

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