There’s no earning growth to speak of at the present time. There has been a lot of speculation and evaluations are relatively stretched. So, I don’t think that U.S. stocks offer great value and that they could easily drop. 20, 30 percent wouldn’t surprise me at all. Gold shares are in a different position because they’ve been correcting essentially since 2011 and many gold shares are down 50 percent from those highs. So like emerging stock markets they have grossly underperformed the overall indices in the U.S. and with all the money printing – and I have to point out, I don’t believe in any tapering – maybe they reduce asset purchases somewhat, but I think it’s actually quite likely that they will increase asset purchases. For the simple reason that the economy doesn’t recover, stock market goes down, the bond market goes down, and then the people at the Fed will say, we didn’t do enough. And then they will go and increase their asset purchase. Including the Fed in theory would buy you off the stock markets.
So I think that in this environment of money printing you want to own some physical gold held outside the U.S. I don’t understand why it would take eight years for the U.S. to deliver the gold. The German Bundesbank would be possible to do it in one week, but maybe the gold is not there.
