Valcambi-CombiBar-closeupJohn Embry said last month that the rally at the beginning of the year was encouraging, but to remember that sentiment for gold was still extremely negative. He says that the stock market’s new highs are a result of the Fed ‘jamming cash into the economy.’ With nowhere else to go, cash is creating bubbles in stocks, real-estate and bonds, he warns. Hello John. Gold has fallen back down over the last month. Do you think optimism for a fast recovery in gold has fizzled out? John Embry:I believe that is probably a fair assessment of what has happened since. I think that the decline in the last month has hurt confidence in the West. But I can assure you that the Eastern interests are rubbing their hands and piling into all the physical gold they can get. Once they realize that there is a limited amount remaining for them to pour their U.S. dollars into, I believe the price will move up sharply. I think that people should be focusing more on the eventual upside — which is going to be huge–than on the short-term downside which is due to the paper markets. More