Legend Says Bears Attacking Gold & Silver Markets May Get Torched Here

Today a legend who was asked by the Chinese government to give a speech to government officials in China, spoke with King World News about the bear raid taking place in the gold and silver markets.

Eric King:  “John, we are seeing another raid in the gold and silver markets, which are getting hit in early trading — your thoughts.”

John Ing:  “It’s important, Eric, to make the distinction between physical gold and paper gold.  Just like we are seeing now, from time-to-time the paper gold market swamps the physical gold market, but amazingly the physical gold market seems to keep edging up and helping the longer-term upward trend of the gold price…

John Ing continues:  “Sure we get these high-frequency trades to the downside every now and then, but it’s becoming more and more difficult to push the price of gold lower.

Russia Adding To Its Gold Hoard
What we are seeing is steady accumulation of physical gold.  For example, recently Russia added 13 tonnes of gold to their growing hoard in the month of September.  In fact, the Russians have now been purchasing gold for 20 months in a row.

China’s Relentless Gold Demand Continues
We also have China, who continues to be a large buyer.  In fact, imports of gold were up 9 percent in the month of September.  Eric, the problem is that everybody tends to look at the numbers out of China but they really don’t know how to interpret them.  As an example, the most important thing in the recently released figures is the fact that the banks in China across the board continue to be buyers of physical gold.  This data is supported by the Shanghai Gold Exchange, which is now the largest physical gold market in the world.

India’s Gold Demand Soars A Staggering 25 Percent!
But despite the shenanigans in the paper gold market, the bears are pushing against the seasonal strength of India and Diwali.  In fact, India’s physical gold demand was up a staggering 25 percent!  So yes, there has been steady, steady physical gold demand.

Against this very strong physical gold backdrop there have been a lot fewer physical supplies of gold.  We have just seen in the last quarter that there were mixed results for the producers.  We have seen many companies encountering production problems.  That tells me that even at the higher price of gold, some of these mining companies are still having difficulty.  This negatively affects the total annual gold production.  In fact, next year I am looking for lower production from a lot of these producers.  So that will further tighten an already strained physical market.

Gold Bears May Get Torched Here
In closing, keep in mind what I said in my latest piece (on KWN), that we will see an overnight $100 spike in the price of gold if Donald Trump wins the election.  In the event that the bears are caught on the wrong side of that trade, they will experience tremendous pain.”

King World News
11/7/2016