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John Embry continues:
“People say keep an eye on Greece because if they don’t come up with a solution it’s bad for gold. I think that’s ridiculous. The fact is if the price weren’t so manipulated it would be continuing to roll ahead because there are no solutions to these various problems that are plaguing most areas of the world today.
I’ve had a strong view for a considerable period of time and it was certainly reiterated by my great friend Murray Pollitt, who unfortunately passed away a week ago. Murray was a real student of the market and gold mining because he started a gold mining company and he was around the industry for 40+ years.
Murray and I would share the same opinion that all of the low hanging fruit (gold) in the world has been picked. Underground mining has gotten extremely difficult. What stepped in and really grew gold mining production in the 80s and 90s was the open pit explosion, which was a new technology at that point....
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“So what’s essentially happened there is all the easy open pits, of decent grade, have been mined or are in the process of being mined. Consequently, you are continuously being faced with lower and lower grades and you are having to go to more geopolitically unpleasant places to find gold.
So I share the opinion of Aaron Regent, CEO of Barrick (Gold), who a couple of years ago in a speech in London actually alluded to ‘peak gold.’ Meaning the annual production (numbers we have seen) may not be exceeded again because of the problems that I just mentioned.
So anybody that believes the gold price rise is going to be alleviated by added supply from the mining sector I think is wrong. I think the business is going to be very hard and if you do have a company that is mining a decent quality ore body, in a geopolitically attractive area, you’ve got a great asset.”
This interview is John Embry at his finest. The extraordinary KWN audio interview with John Embry will be available shortly and you can listen to it by CLICKING 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 This material may not be published, broadcast, rewritten, or redistributed.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.
Eric King
John Embry - Is Greece’s Situation Bad for Gold?
With gold and silver continuing to consolidate, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. Embry told KWN that we have seen “peak gold.” He also filled us in on what the Greek situation really means for gold: “Gold is in a bit of a stranglehold here and has been since almost the beginning of February. It sort of coincides with this whole Greek saga where they seem to have a solution every morning and by the end of the day somebody points out another flaw. I think this is extremely bullish for gold.”
© 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.
February 15, 2012
