By KingWorldNews: Today
a legend who was just asked by the Chinese government to give a speech
to government officials in China told King World News that the Russians
listened intently as the leader of a state owned Chinese company pushed
for a gold backed yuan. John Ing, who has been in the business for 43
years, also shared many other stunning developments from his trip to
speak with a large number Chinese government officials.
Ing: “Gold has made an 8 1/2 month low while the U.S. dollar has made a 4 year high. I have said repeatedly that gold has a triple-bottom in place at $1,180. So I think that’s the worst case and that’s less than 3 percent away from current levels....
Ing: “Gold has made an 8 1/2 month low while the U.S. dollar has made a 4 year high. I have said repeatedly that gold has a triple-bottom in place at $1,180. So I think that’s the worst case and that’s less than 3 percent away from current levels....
“We’ve already seen
gold fall 6.5 percent recently, so I feel that the worst is over. The
technical charts show that gold and the gold stocks are very oversold,
and of course the U.S. dollar and the stock market are very overbought.
So my sense is that this disconnect will not last long.
Also, Eric, I was invited to give a speech at the first ever Chinese Gold Congress, which was sponsored by the Chinese government and the 5 big gold companies, including (state owned) China National Gold. There was a heavy Chinese government representation (600+ attendees). The fact is that the Chinese remain bullish on gold and they have been buying up to 1/3 of world supply.
All five Chinese producers echoed that their reserve life is something that concerns them. So all of them are looking internationally to acquire reserves in the ground. Even the president of China National Gold said that the renminbi, which is becoming internationalized, should have a gold backing.
Also, Eric, I was invited to give a speech at the first ever Chinese Gold Congress, which was sponsored by the Chinese government and the 5 big gold companies, including (state owned) China National Gold. There was a heavy Chinese government representation (600+ attendees). The fact is that the Chinese remain bullish on gold and they have been buying up to 1/3 of world supply.
All five Chinese producers echoed that their reserve life is something that concerns them. So all of them are looking internationally to acquire reserves in the ground. Even the president of China National Gold said that the renminbi, which is becoming internationalized, should have a gold backing.
It
was also announced that the Chinese have planned another gold vault
which will be equipped to store about 1,900 additional tons of gold.
And that will be located across from Hong Kong in the Chinese city of
Shenzhen. I believe that brings the total number of gold vaults in
China to four. This is necessary because they are such a big player in
the physical market and their presence in the gold market will only
increase over time.
When I
was in China the Shanghai Gold Exchange announced that they will be
trading gold internationally, and they intend to set the physical price
for gold. The importance of that, Eric, is that they are going to
initially introduce something like 11 renminbi contracts. So gold will
be transacted and settled in renminbi instead of the U.S. dollar.
All
the big houses are there -- HSBC, Goldman, ANZ, etc. In fact, recently
we’ve seen even more evidence of the huge appetite on a physical basis
that the Chinese have. So together with the vaults and the changes at
the Shanghai Gold Exchange opening up for international investors, this
tells me the Chinese are setting up to dominate the gold market in the
future as they continue to soak up the world’s available supply of gold.
I
also found it interesting that the Russians were attending and listening
intently at the Chinese Gold Congress. I’m sure the Russians were
surprised at the open discussion of a Chinese gold backed currency.
This shows that the Western sanctions have moved Russia and China closer
together as the Russians look to the East for financing. We also know
that the Russians have been big buyers of gold. The Russians have moved
up their reserves from 600 tons to well over 1,000 tons. So the
Russians also continue accumulating gold.”
Ing added: “What
we are seeing is the last gasp in terms of U.S. dollar strength. You
see the Chinese, Russians, and other countries buying currencies other
than the U.S. dollar. In fact, this move away from the dollar will be
one of the catalysts to move gold higher. We seem to be in the midst of
a currency war where every country is trying to weaken their
currencies, including the Japanese and the Chinese. These currency wars
are a very favorable backdrop for higher gold prices. So on a
risk/reward basis, the downside is somewhat limited in gold and the sky
is the limit on the upside.”
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