What the World Gold Council construes as negative for gold, the supposed use of the metal as collateral for commodity loans in China, is actually bullish, Sprott Asset Management's Rick Rule tells King World News.
"A whole class of creditors and debtors in China believes that gold is good security," Rule says. "There are a lot of other assets they could have used for good security, such as U.S. Treasuries. One suspects that China has enough U.S. Treasuries already and that an alternate asset class is what is required to effect the financial transaction."
An excerpt from Rule's interview is posted at the KWN blog here:
http://kingworldnews.com/kingworldnews/KWN_Da...2014/4/16_Cr...
