John Embry, chief investment strategist, Sprott Asset Management

On Gold
I think gold is doing magnificent job in face of skepticism, driven by physical demand, overwhelming sources: mines, scrap, central banks..I predict $775 this year, the way that things are shaping in US and global currency creation that is going on, I see $1000 easy..significant part of story is US dollar, also other currencies because they do not want US dollar to fall, creating all sorts of their own money to keep on buying US dollar, charade..everyone keeps on bottoming of housing market, I see free-fall, think that Fed is sugar-coating, we could definitely have recession at some point, depends on how long they can keep consumer going..consumer is almost dying now given number of bankruptcies, foreclosures, savings rate -1%..I still think that any next move in interest rate will be down, careful because they are still trying to juggle economy and US dollar, they prefer US dollar

Long/Short, Technicals of Gold
Commitment of Traders report is cause for worry in short-term, commercials, bullion banks who are playing the market are extremely short compared to speculators, tech funds, black-box guys who are long..traditionally they put enough pressure on the market when these speculators are long, break them, clean them out, cover shorts..now one day there will be spectacular commercial failure, that is when gold price will go nuts

We are at key technical level, $658..if it clears with gusto, I think $700 very quickly, that is why were are having battle, and it is a battle..

ORVANA MINERALS (TSE:ORV): I would definitely be buying here, Bolivia factor overdone, do not think this mine will be nationalized..generating cash quickly, upper mineralized zone NAV probably worth what stock is worth, lacks sponsorship because of Bolivia issue

MELKIOR RESOURCES (CVE:MKR): I own this company, purchase in tax shelter, I think any one of three properties interesting..for a penny stock, this is real good one

MAXY GOLD (CVE:MXD): Maxy is good representative of junior gold space, ones that may have good projects but have poor promotion have fallen away..interesting project in China, not a lot of shares outstanding..current price of stock extraordinarily cheap, we need to see more money coming back into junior gold space

BUFFALO GOLD (CVE:BUF.U): I am long Buffalo..good project, in rather gamey part of world Papa New Guinea..drilling results today, I have been buying at these prices

GOLD EAGLE MINES (TSE:GEA) : I own Gold Eagle, it is an interesting play, if you believe optimistics, there are lots of high-grade ounces up there at Red Lake, problem is they are very deep..this stock came from 40 cents, trading >$8, also merged..no longer risk-free, would rather look for next 40 cent stock

PETAQUILLA MINERALS (TSE:PTQ): flies under radar, met with one of their representatives..they are planning to spin off copper, interesting gold property, showing well although not enough ounces..I would be inclined to stick with it, sponsorship, tightly-held

AFRICAN GOLD GROUP (CVE:AGG): I own over 10% of African Gold, operating in Ghana, Mali, just pulled a very good hole..extraordinarily cheap stock, not a lot of stock out, considering what they have got in land package, I think stock looks terrific here..I have owned for couple of years

BEAUFIELD CONSOLIDATION (CVE:BFD): I own this one, has good land package where Virginia ore body sold to Goldcorp..stock had huge run from 20 cents to 85 cents, pulled back sharply to 35 cents, good speculation

PAST PICK SOUTHWESTERN RESOURCES (TSE:SWG): been buying more, conceivably the most misunderstood stock..at least 5 million ounces, generator of mining projects in Peru and China, I think stock at $7.65 is right on the floor..ugly correction for reasons I am quite not sure why

PAST PICK WESDOME GOLD MINES (TSE:WDO): this one has two operating mines, both good mines..will be premium when gold price runs sharply..keeper but right now it is a struggle

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