John Embry continues:

“Today, China’s gold imports from Hong Kong show they have been going ballistic.  These are staggering numbers.  Where is the gold coming from?  It has to be coming from Western central banks or the back door of the gold ETF.  This is wildly bullish and I think there are lots of short positions in the paper market, so I wouldn’t disagree with (John) Hathaway that we will see a short squeeze in gold.

The fact that we had a bad past 4 months, in 2011, has absolutely no impact on the future price of gold.  I believe, in 2012, we will easily reach $2,500.  That means a 60% rise over the year end close in 2011 and I think that may end up being conservative.  So I think, as an example, Rob McEwen is dead right when he says gold will accelerate to the upside as it breaks through $2,000.

The rise we are discussing is the perfect scenario for a massive move in the shares.  People who believe the shares are only for trading and will never experience any real action to the upside are not invested in the shares and they are dead wrong.... 

Continue reading John Embry interview below...  


To hear which company $10 billion Sprott Asset Management and Sun Valley Gold

are the largest shareholders of and why click on the logo:

“There are extraordinary amounts of buying power on the sideline and the shares have been crushed down to minimum valuations.

There are also staggering short positions that we are aware of, some of which are undeclared.  What we need to trigger the explosion to the upside is a significant move higher in gold and silver prices, which I think is inevitable.”

When asked about silver specifically, Embry stated, “I think silver is a rocket ride here and it is priced way below where it should be.  It’s been put there by the paper criminals and this will correct itself violently because there is no physical silver available, of any magnitude.  All it will take is some significant buying in the physical silver market to unleash this beast and when it gets going people will look on in astonishment.

I don’t have any problem with silver blowing through its all-time high this year and heading towards $100.  Once it clears $50 there is no overhead resistance and then things will really get interesting.  I believe silver will hit $100 in 12 to 24 months.

As you know I have been a great proponent of a falling gold/silver ratio, which is currently in the range of 55/1.  It will hit 10/1 or 15/1 before this bull market is over.  Silver will rise two to three times faster than gold, and as you know I am extremely optimistic about where the gold price is headed long-term.”

Embry also issued this warning about where things are headed in 2012:  “Quite frankly, 2012 is going to be annus horribilis (year of horrors) for those with a conventional view on economics and finance.  There is a degree of complacency, right now, that I find eery.  There is no reason for this complacency. 

It’s a testament to the power of the mainstream media, hoodwinking the public and the government chipping in with their bogus statistics.  At this point people have no real appreciation of how bad things are going to get and I think it’s going to hit big-time this year.”

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Eric King

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© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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