Red: John Embry's commentsIt's like Machiavelli said; people make mistakes in general, but not in the particular. Embry's views on a world gold conspiracy are absurd. Gold reserves in the top five countries alone (US, Germany, France, Italy, Switzerland) plus the IMF, top 20,000 metric tonnes. So when they sell 400 tonnes, it's just a drop in the bucket. If they really wanted to devastate the gold price (and lose a lot of money in the process), they could simply dump the market. Of course central banks also want to take advantage of high gold prices, so they do the rational thing, and sell only a few hundred tonnes at a time, feeding it slowly into the market.
Embry's paranoid views on a world banking conspiracy, however, do not impair his ability to judge the quality of small mining companies. His trade decisions concerning individual companies are based on sound business logic.
Until which time miners start to run out of gold, the price is largely a reflection of inflation expectations.
B