John Embry continues:

“They (the commercials) will move heaven and earth to protect this short position.  As a result, I think we are going to battle here.  But the great news is, unlike the old days when they could really smash gold, this physical demand is building up underneath the market, so the downside has been contained.

When the access market opened up for trading on Sunday night, gold and silver were taken down (as Norcini had predicted).  So they were basically taking the market down when the physical market was closed....

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“This will pass, and we may still see the commercial signal failure.  I totally agree with what the London Trader had to say regarding how close the gold market was to seeing a commercial failure.

The other point here is the US election is coming up very shortly, and the effort is to hold things up and make them look way better than they really are.  The economic numbers are being falsified.  I think all markets of any significance are being rigged, but none more so than gold.

If gold exploded in price, that would mean that everything else they are reporting is exposed as being a lie.  But once the election is behind us, I think there is going to be a big move in gold.  I would be very surprised if we aren’t comfortably at record highs well before the year ends.”

What the London Trader was discussing with you was the fact that we were within $10 of a commercial signal failure, which is just astonishing.  These commercials are incredibly short, and the open interest on the COMEX alone is very high, forgetting what is going on at the TOCOM.  So if this market starts going against them, the price rise will be extraordinary.

I thought the London Trader’s comments were spot on.  They had to take the gold market down so the weaker commercial shorts didn’t panic and break the gold market out to the upside in a major way.  If gold would have broken out that way, then all of the money would have started pouring in on the long side.  That would have been a true commercial signal failure.”

Embry also added: “There seems to be a better attitude towards Europe in the very near-term.  I’m not sure why because I don’t see any solution to their problems.  Greece will be out of the euro six months from now.

So consequently, I don’t see any bright spots whatsoever in the Western world.  And over in the East, if people took a close look at Japan they would be utterly horrified.  The bottom line is I am very comfortable being long gold in this environment.

I would also say that gold shares, as a result of the fact that they are way undervalued in relationship to bullion, represent a historic buying opportunity right here.”

© 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.

The interviews with James Turk, Egon von Greyerz, Jean-Marie Eveillard, Bill Fleckenstein and Art Cashin (UBS $612 billion) are available now.  Also, be sure to listen to other recent KWN interviews which included, Jeffrey Saut (R.J. $360 billion), John Embry, Gerald Celente, Rick Santelli, Michael Pento, and Don Coxe by CLICKING HERE.

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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