Mr. Ing: Gold has done terrifically this year, up one time over 40%, touching $1,200 an ounce. Gold will close this year with the ninth annual increase in a row. The key driver has been the very weak U.S. dollar. In the last few weeks or so, we are getting what they call a "dead cat bounce" in that the U.S. dollar has bounced and gold has corrected. But by and large gold's uptrend and the U.S. dollar downtrend is intact.
TWST: We know where we've been; the question is where do we go from here?
Mr. Ing: Deflation was yesterday's crisis. A year ago everyone was concerned about the meltdown, and then of course what we got was trillions and trillions of taxpayer dollars that were thrown at everybody from Wall Street to the car companies. And now unfortunately, we still have a very high unemployment rate and staggering debt level. If deflation was yesterday's crisis, today it's unemployment. And amazingly the policy prescription by the government of easy money, easy credit and a lot of leverage that got us into the problems in the first place, they are using the same policy prescription of more debt, more easy money and still lots of leverage. No one is talking about the consequences. And so the problem tomorrow is going to be more inflation, and that's a worry, which is one of the reasons why gold is moving up.
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