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Virginia Mines Inc VGMNF



GREY:VGMNF - Post by User

Post by 20/20/12on May 30, 2012 3:09pm
206 Views
Post# 19962119

still pumpin'

still pumpin'

TOP STORIES | Wednesday , 30 May 2012

One of the finest opportunities to buy gold in the whole bull market - Embry

For Sprott's John Embry the current level represents a strong buying opportunity because nothing in recent months has really been gold unfriendly. Wednesday , 30 May 2012

Gold falls for second day as euro crisis engulfs Spain

The euro fell sharply against the yen and remained around two-year lows against the dollar as concerns intensified about the solvency of Spanish banks and Madrid's ability to bail out its financial sector. Wednesday , 30 May 2012

Prudent central banks stock up on gold

Amidst the deepening financial crisis in the euro zone, certain prudent central banks are adding gold to their reserves. Wednesday , 30 May 2012

https://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=152366&sn=Detail&pid=110649

One of the finest opportunities to buy gold in the whole bull market - Embry

For Sprott's John Embry the current level represents a strong buying opportunity because nothing in recent months has really been gold unfriendly.

Author: Geoff Candy
Posted: Wednesday , 30 May 2012


GRONINGEN (Mineweb) -

While gold has fallen significantly since hitting a peak in September last year, according to Sprott asset management's chief investment strategist, John Embry, nothing in this period has been "gold unfriendly".

Indeed, Embry believes that there has been a great deal of interference within the market with a lot of people trying to make the global economic picture look better than it actually is. And, as a result, at current levels, gold represents " one of the finest opportunities if not the finest in the entire bull market which is now in its 12th year."

Embry is nothing if not bullish about the price of gold. Speaking on Mineweb.com's Gold Weekly podcast, he said, "I think gold is going to $10,000 at some point and it's going to have nothing to do with the cost to dig it out of the ground, it's going to have everything to do with the fact that people just don't think their money is going to be worth anything."

To back up his claim he says one just needs to look at the state of global budget deficits.

"They're out of control and they [politicians] are not going to get them back in control because austerity just makes budget deficits bigger. So, I think you're waiting for that moment of recognition when people realise 'Oh my God this paper currency that I've just clung to for the last 40 years isn't going to buy me a loaf of bread in two years.'"

He adds, "Gold is the mortal enemy of the fiat paper currency system that we are operating and have been operating for 40 years. People are beginning to realise that this money is going to be turned into confetti and the authorities are scared to death that they are going to make the connection that gold is a good idea...People aren't making the correct connection that gold is what you should be holding in this environment - that will change."

For Embry, one of the major problems is that while, understandably, a great deal of attention is being currently focused on Europe, the situation in the US is equally as dire.

"I spent a lot of time studying the real US economic statistics and I don't think there's any recovery of any substance whatsoever ... I think the most shocking statistic that has come out in the last nine months is the fact that last year the US monetised 61% of its budget deficit. That's staggering. I can't even conceive of that, yet they did it and no one seems to care."

But, he does agree with other commentators, such as Ian McAvity, that if Europe were to implode or if the banking system got into a great deal of difficulty, it would go viral around the whole world almost immediately and no-one would be immune.

"The majority view, which is propounded by the US and a lot of the European countries, will prevail and austerity will go by the boards and essentially we will refinance the European banks and it will be wildly inflationary," he says.

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