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John Embry - Gold & Silver Close to Taking Off

With gold holding near the $1,650 area and silver turning positive, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. When asked where he sees things headed from here, Embry responded, “I think the comparison between silver and (shares of) Apple is excellent in the sense that silver volatility has been horrific. All but the true believers have been knocked out of the box for sure. But I believe in the fullness of time, silver, from the bottom, may post a better return than Apple and that’s really saying something because Apple has been fantastic.”

John Embry continues:

“We just had the PPI released today at .8%, that translates to roughly 10% inflation annually. This was a bit of a surprise because the mantra from the powers that be is that inflation is under control and if anything it’s moderating. The fact that gold was down so much in the wake of that release just shows the degree that they kick the gold market around in a counter-intuitive sense.

So much of this volatility has been created by this ridiculous paper trading on COMEX, I mean each time that this thing gets smashed, the premium on physical rises. So I think we are getting real close to this thing taking off.

You can only take a credit cycle so far. Once you reach the point where you can’t create credit productively you’ve got to stop. They (central planners) apparently have no intention of stopping. They seem to think that we can bail ourselves out by adding even more debt to a situation that is created by excessive debt that’s not serviceable. I just don’t think that’s going to work....

Continue reading the John Embry interview below...

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“What will happen if they continue to go down this road, which I believe they will, is we will head towards some form of hyperinflation. That is worse than a depression for the simple reason that it’s so corrosive to a society.

I mean a depression is horrible, but the fact is that 75% of the people are still working and at least there’s some sort of structure to the system. America made it through the depression in the 30’s, Zimbabwe is having a little more trouble coming through their hyperinflation.

The average German person [during the hyperinflation], he lost everything. In a depression you don’t lose everything. A certain segment of society does, but that’s the price that has to be paid for the excesses that went before.

The founder of Austrian Economics, Ludwig von Mises said, ‘You can either take the pain now and get it over with and start it up again or you can continue to kick the can down the road and what will result is a complete destruction of the currency system.’

I think this is a tragedy unfolding for us Westerners. I’m a Westerner, I grew up in North America and I love North America and what I see happening is tragic. The vast majority of our gold, which is real wealth, is going to be transported to the East before this is over.

These continued raids, these paper raids on gold that knock the price down, it just makes it that much easier for the Chinese to buy gold at a bargain price and they are doing it.”

The KWN audio interview with John Embry is available now and you can listen to it by CLICKING HERE.

Eric King

KingWorldNews.com

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