As the gold and silver markets attempt to stage a rally, today John Embry told King World News that some long time gold holders are now capitulating.
John Embry: “Well, Eric, it has been over three weeks since we last talked and a lot has certainly happened in the interim…
Continue reading the John Embry interview below…
John Embry continues: “I find the thing that is most amazing to me is how the deep state, after being totally wrong-footed by the Trump victory, has been able to almost instantaneously change the narrative about the impending Trump presidency through heavily manipulated market price action. As you well know, the U.S. stock market fell precipitously as Trump’s presidency was confirmed, only to rise even more rapidly to record levels within days. This strength, in conjunction with a robust U.S. dollar, has continued virtually unabated for three weeks.
On the other hand, gold and silver which were expected to rise sharply in the wake of a Trump victory in much the same fashion as occurred after Brexit, were virtually slaughtered in the paper markets after a brief burst of strength. Obviously, the central banks and their bullion bank cohorts learned from the Brexit experience and were lying in wait this time.
To their credit, the price takedown in the paper markets has worked in the sense that I have been told that a number of long term gold holders have been so discouraged by the price action that they have actually been dishoarding physical gold. The unfortunate reality, however is that sustainable economic growth, which is now the mantra of the stock market bulls in the wake of the Trump election, is not achievable. In a world this saturated with debt and derivatives, any aggressive stimulus, monetarily and/or fiscally, will manifest itself primarily in greater inflation, most probably culminating in hyperinflation.
What should also concern investors today is the back-up on long U.S. interest rates. The inevitable global economic collapse has been forestalled by a zero-based interest rate policy in the Western world, which has morphed into a negative rate scenario in a number of constituencies. This is all simply preposterous and will be seen as such in retrospect.
Some Long Time Gold Holders Now Capitulating
I have believed for some time now that gold and silver bullion are as inexpensive in relation to debt and outstanding currency as they have been in their lengthy history. This latest orchestrated price takedown, which incidentally has a very finite life, is providing an even better opportunity to purchase the necessary insurance against eventual hyperinflation and financial collapse. The fact that some long time holders are currently capitulating provides a very positive sentiment indicator.
By the way, the precious metal shares, which have corrected sharply in conjunction with the bullion price takedown and that everybody wanted to own at the peak of the summer rally, now represent tremendous upside leverage at this juncture.”
***On the heels of the recent brutal multi-week smash in the gold and silver markets, KWN has now released the powerful audio interview with Egon von Greyerz and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Increasing Velocity Of Money Will Be The Big Upside Surprise For Gold As Trump Enters The White House CLCK HERE.
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