John Embry continues:

“Eventually the gold market is going to realize this and it’s going to go berserk,  but in the meantime the central planners can use market manipulation to keep a lid on gold.  I guess it’s discouraging in the short-run, but in the long-run it means nothing.

I monitor gold’s relationship to platinum.  It was only a couple of months ago that gold was trading almost $200 higher than platinum.  Gold should be higher than platinum because it’s a monetary metal and platinum isn’t...  

Continue reading the John Embry interview below...


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“The last two months platinum things have changed and platinum is now trading at a premium to gold.  This shows the degree to which gold is being manipulated.  Gold should be hundreds of dollars higher as we speak.

Gold is money and right now the paper money is being systematically destroyed.  At this point, people haven’t figured that out yet.  They will and when they do the real money, gold, will assert itself and it will be trading at multiples of the current price before this is over.”

Embry also had this to say regarding silver:  “Silver is a smaller market which they can manipulate more adroitly in the short-run with their paper shenanigans, but it has absolutely no bearing on where silver is going in the next year.  Silver will go up dramatically and it’s just a matter of what’s going to be the catalyst that lights that market on fire. 

Something will happen for silver in the not too distant future.  The market is frustrating at the present time, but anybody that’s being spooked out of the gold and silver markets by this price action is making a horrific mistake.”

When asked about the crude oil market, Embry responded, “The two biggest factors are geopolitical and monetary debasement.  Based strictly on supply and demand, I don’t think the picture is that spectacular.  But if you feed in the other two factors, the geopolitical risk which is enormous and this ongoing debasement of money, I think oil is going to move up sharply from current levels over the next twelve months.”

When asked about Greece, Embry stated, “There is no question that the whole Greek situation is hopeless.  Central planners can paper it over in the short-run and say what they want, but the Greek economy is destroyed.  Ultimately, I think there is no choice but to leave the euro and reintroduce the drachma.

That will be extremely disruptive, but I don’t see another outcome unless the Germans and the rest of the Northern Europeans are prepared to carry these guys and I don’t think that’s going to be the case.

There is absolutely a danger of contagion.  Take Spain as an example, it’s a great country and I like Spain immensely, but I don’t like their financial positions or their employment situation.

When you’ve got 50% of your 16 to 25 year old males unemployed, your economy is contracting and your Prime Minister comes out and says, ‘We can’t possibly meet the budget requirements the European Union is putting on us,’ that tells you everything you need to know.  Contagion is a major risk.”

© 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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