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John Embry continues:
“One of the basic goals now is to hold the Dow above 13,000 because this imparts confidence to the public. This is totally unrealistic and unsustainable because there is nothing in the backdrop other than money creation that would suggest the stock market should be higher. No market in history has traded like this, particularly considering how bad the fundamentals are at this point.
They want to hold this together for another six months, until the elections take place in the US on November 6th. This is their goal. Can they do it? I’d say no....
Continue reading the John Embry interview below...
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“We’ll just have to wait and see. The conditions, financially and economically, in my mind, are deteriorating in many parts of the world.”
When asked about gold, Embry stated, “Today I took delivery of more physical gold because I think this is a great time to be adding to your position. Eight months ago it was over $1,900 and today it’s $1,650. Savvy investors will buy these dips in bull markets and that’s what I’m doing personally.
Once gold exits this range that it’s been in now for a considerable period of time, it will exit violently to the upside. I keep saying it, but the physical market is gradually overcoming the paper market, and the paper market, in a word, is preposterous.”
Embry had this to say about the mining shares: “You go through these periods where markets become extremely irrational, and it looks like they are going to fall every day, and there is no sort of reality anymore. I remember, it’s been 38 years, but I remember it as if it were yesterday, the 1973/1974 bear market in US stocks. We literally would go to work wondering why we had jobs.
Why would anybody pay us to just witness this ongoing decline (which was roughly 47%)? It was beyond depressing. When you have seen these things before, you realize that if you understand the fundamentals, it’s a great opportunity.
But, until you’ve been around for a while, you don’t look at it that way. Most novice investors don’t understand this and so they are puking up the mining stocks because they just want out.
The quality mining shares are dramatically undervalued. The value is so exceptional. I just read one piece that said ‘in the last 100 years, this is one of the 5 best buying opportunities.’ It’s amazing to have this opportunity, considering how great the fundamentals for gold and silver bullion are.
At this point because of the lackluster price action in the shares, most people are abandoning them and the sentiment is remarkably negative. This is when you want to buy, when sentiment is negative and fundamentals are astoundingly positive.”
The Dr. Keith Barron and Eric Sprott audio interviews are available now. And be sure to listen to this week’s incredible line-up of other KWN interviews, which include Egon von Greyerz, Rich Yamarone, John Embry, Jim Sinclair and John Hathaway. You can listen to these interviews 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
Embry - This is What I’m Doing with My Own Money Right Now
With the Dow now at its highest level since December of 2007, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. Embry told KWN “This is totally unrealistic and unsustainable.” Embry also discussed gold and the mining shares, and what he is doing with his own money, but first, here is what Embry had to say about what is happening in the stock market: “There is enormous interference in the stock market. The ‘Plunge Protection Team’ or ‘President’s Working Group on Financial Markets’ is in the market, virtually every day, making sure there is enough money being funneled to their primary dealers, so the stock market never has a serious hiccup.”
© 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.
May 1, 2012
