On the heels of a surge in gold and silver prices as well as the shares, today a 50-year market veteran told King World News that the global and financial world are entering uncharted waters.
John Embry: “It appears that some rationality is finally entering the god and silver markets, following obvious recent suppression on the Comex…
Continue reading the John Embry interview below…
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John Embry continues: “Very simply, there is a mounting shortage of available physical gold and silver in the Western world. And I believe it has finally started to impact the price, despite the best efforts of the bullion banks to thwart the upward momentum by continually shorting the paper gold and silver markets.
Now, I am proud to say that our firm has hopefully contributed to this (shortage) phenomenon with the announcement that we successfully launched a $75 million offering in the Sprott Physical Silver Trust. As you know, our product is totally backed by silver, unlike some of the paper products on the market. So we will be taking a considerable amount of physical silver out of an already tight market.
I also remain impressed by the relentless strength of the HUI Gold Index, which is now up over 100 percent since January 19th. Historically the stocks have tended to lead the bullion when a big move is coming, so this is a significant development. In this instance, the stocks were ridiculously underpriced relative to the bullion when the move began.
So, Eric, I anticipate that the large upward move I expect imminently in the gold and silver prices will launch these stocks much higher, despite the appreciation to date. In reality, very few investors own them and the entire capitalization of all the gold and silver stocks remains tiny in comparison to the amount of money and credit in the global financial system.
I was fascinated by an observation in Egon von Greyerz’s excellent weekend KWN interview. He quoted the IMF as being worried about systemic risks in the life insurance industry. As you may or may not know, Eric, I spent 23 years working for a life insurance company managing their equity back when I was much younger.
Quite frankly, I have been baffled at how well the insurance companies stocks have held up in the market given that they will have increasing difficulty making returns in a NIRP era, which are necessary to support their myriad of long-term products. I wouldn’t own these stocks with a strangers money let along mine.
Uncharted Waters
The bottom line is that we are entering uncharted waters in the global and financial economic world. Investors cannot be too careful here. Gold and silver, which have been traditional money for centuries, remain the cheapest and safest assets on the planet currently, and their shares provide spectacular upside leverage, despite the move to date.” ***KWN has now released the extraordinary audio interview with legend Art Cashin discussing his greatest fear and the the implication of this for the gold market and much more and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***KWN has also now released the fantastic audio interview with Rick Rule discussing the gold and silver markets and what he is doing with his own money right now and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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