Embry – Mining Shares Will Be Like Internet Stocks in the ’90’s
KingWorldNews.com
With gold hitting new all-time highs and silver up over $2 at one point and mining shares taking off to the upside, today King World News interviewed John Embry, Chief Investment Strategist at $9 billion strong Sprott Asset Management. When asked where he sees things right now Embry stated, “What’s been fascinating, and what was unappreciated by me in the early stages, was the enormous number of derivatives that have been created in the financial system. Because of the derivatives they’ve been able to keep this thing going for infinitely longer than any rational mind would have thought possible.”
Embry continues:
“You’ve been able to create leverage to the extent that you’ve never seen before and this is why I think the bubbles were able to get stretched out and last as long as they did. Because the balloon was blown up so much, I just think the aftermath in its finale is going to be extraordinarily unpleasant.”
When asked about the action in gold Embry responded, “I have been waiting for this move and it was interesting that it (gold) broke out a couple of days ago with real vengeance in the Euro. I suspected that the next shoe to drop with be in North America and now we’ve got new highs today in US dollars, which should get even bigger headlines. Gold is starting to make new highs against all currencies, and this is what we envisioned in an environment in which the fiat currency system is breaking down.”
When asked if London Whistleblower Maguire’s interview was contributing to this rally Embry said, “I believe it is. He made very strong points. One of his key points was regarding the whole pricing mechanism in the gold market, and that is when the physical market takes over from the paper market in establishing the price, it will represent the end of paper manipulation….