Embry - Gold’s Rise Will Shock Market Participants Embry - Gold’s Rise Will Shock Market Participants This Year
February 7, 2012
https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/2/7_Embry_-_Golds_Rise_Will_Shock_Market_Participants_This_Year.html
With gold trading roughly $30 higher and silver breaking solidly above the $34 level, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management, to get his take on where he sees gold and silver headed from here. Embry told KWN this will be, by far, the strongest year for gold during this entire bull market. Here is what Embry had to say about the situation: “The fact that sentiment is so poor with gold at these levels just indicates that people don’t realize what’s really unfolding. I think the price action to begin the year has been exemplary. It was interesting as gold was getting a head of steam going last week, out comes that bogus jobs report that led to the one day reversal in gold and silver.”
With gold trading roughly $30 higher and silver breaking solidly above the $34 level, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management, to get his take on where he sees gold and silver headed from here. Embry told KWN this will be, by far, the strongest year for gold during this entire bull market. Here is what Embry had to say about the situation: “The fact that sentiment is so poor with gold at these levels just indicates that people don’t realize what’s really unfolding. I think the price action to begin the year has been exemplary. It was interesting as gold was getting a head of steam going last week, out comes that bogus jobs report that led to the one day reversal in gold and silver.”
John Embry continues:
“Accompanying the phony jobs number were all sorts of wonderful headlines in the mainstream press about how the US economy was firm and there were signs of recovery and so on. The fact they said there were 243,000 jobs created is ridiculous. When you couple all of this with the fact that sentiment in gold and silver is so bad, this sort of quiet gain, I mean gold has risen the better part of $200 since the end of the year, that’s a lot in a short period of timeI still believe this is all just a precursor to what will be the finest year we’ve ever had in this bull market. The best up year, so far, in this gold bull was 36% and I would be surprised if that number were not obliterated this year. This will continue to be a very strong year for the precious metals and it will leave many market participants shocked.”
When asked about silver specifically, Embry remarked, “At Sprott, as you know, we are very bullish on silver. Silver is just biding its time and it’s building a massive base in here. There has been a huge short position in the paper market, which has had a huge impact on the price. I think that will pass and right now as the physical market has become extremely tight.
This indicates, to me, the paper shenanigans that have really plagued the silver market have a finite life now....
“I will not be at all surprised when silver clears $35 to $37, that it could sprint right back to the all-time high area. I have no problem with silver moving into the $60s over the next 12 to 18 months.”
When asked about the mining shares, Embry responded, “I think the same powers that be, which have diddled with the gold and silver markets, have been very active in the shares. They are aware at which point the breakout occurs in the HUI (Gold Bugs Index), it’s 554. It’s really funny because irrespective of what gold is doing, if the HUI approaches 554, it always bumps its head and gets pushed back down.
I believe once it (the HUI) stages a material breakout through that level, the 800 target I’ve been projecting could materialize very quickly. These stocks are very cheap and the ones that are the cheapest and most ludicrously priced are some of the smaller producers.”
When asked about the larger macro picture, Embry stated, “It’s interesting you would ask me that because it’s the theme of my upcoming speech in Palm Springs this Saturday. The macro picture that is underlying all of this is the untenable debt situation throughout the world.
Outside of China, if you break down the three major economies in the world, Japan, Europe and the United States, everyone of them has a debt situation there is no answer to other than to create more paper (money).
That is the most positive environment possible for gold and silver. They are going to continue to debase all of the currencies in all of the Western economies to nothing. If you don’t own gold and silver I think you are making a terrible mistake in this environment.”
To read Embry’s previous KWN interview “Gold is the Cure to Epic Monetary Debasement” CLICK HERE