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John Embry continues:
“The physical market is slowly starting to take precedence over the paper market. Historically the paper market dominates most of the time. In this instance they have been so abusive in the paper market, and kept the prices at such attractive levels that they have induced so much physical buying, that the physical buying is overwhelming the available supply.
That’s where the price is going to be set in the physical market and when that happens these guys on the short side of the paper market are going to have a religious experience.”
When asked about silver Embry commented, “Well I mean Eric (Sprott) and I have been looking for this to happen but it’s very simple. There’s far more demand for silver than there is available supply and the inventory levels around the world have been depleted to very dangerously low levels...Silver stands out because it’s so much more inexpensive and so it’s easy for the little guy to buy.
...It’s the realization that the value of the money that they are being denominated in is being destroyed, and ergo the prices of gold and silver have to go up and if you don’t grasp that concept you’re going to miss this market.”
When asked about gold specifically Embry remarked, “We should be able to achieve $1,650 on this trip.”
You have to remember that Embry was the first analyst from a major firm to proclaim a bull market in gold. He has remained steadfastly bullish during this cycle and he has also put his money where his mouth is.
The complete interview with John Embry will be released shortly and you can listen to it by CLICKING HERE.
Eric King
John Embry - Gold to $1,650, Shorts to Get Crushed
With gold and silver taking off today to the upside, King World News interviewed John Embry, Chief Investment Strategist at Sprott Asset Management which has $8 billion under management. When asked about the action in gold and silver Embry stated, “This is a complete change in the market. In the old days when the bullion banks took the gold and silver prices to the woodshed, I mean it took days if not weeks or months to repair the damage. Today to have it turn around on a dime and go rocketing up, silver to 30 year highs and gold challenging its all-time high again, this is new action and I think it is indicative of the changed condition of the market.”
March 4, 2011
KWN BLOG INTERVIEWS
