With the US dollar at a one point tumbling below the 88.5 level before a violent rally, today John Embry told King World News that the world is going to see gold repriced significantly higher.
January 25 (King World News) – John Embry: “Eric, there has been constant rhetoric concerning fake news coming from all quarters. However, I believe one of the major fake news stories concerns the strength of the world economy. The governments grind out bogus economic statistics, and the alleged mainstream press embellishes the numbers and reinforces the impression that all is well. Among the worst are prestigious publications like the Economist, the Financial Times and the New York Times. As an example, the Financial Times had the gall to run a headline a month or so ago titled, ‘The unfortunate exit of an exemplary Fed Chair. The article went on to extoll Janet Yellen’s stewardship of the US Fed during her time as Chairman. Nothing could be further from the truth. She and her colleagues in the other Western central banks have fueled a historic financial bubble, which is going to end disastrously for everyone.
As I have said on many occasions, the world has infinitely too much debt. and the central banks are rapidly running out of alternatives to deal with it. Interest rates are at unsustainably low levels, financial markets are horrifically overpriced, and inflation is starting to rear its ugly head in the real economy. The central banks now face the conundrum of either tightening too aggressively and triggering a global economic and financial collapse, or continuing to supply whatever liquidity is needed — a path that will lead to hyperinflation. I have always believed they would follow the second path because it is less disruptive in the short-term, albeit a much greater disaster ultimately.
Fortunately for wise investors who want safety in these out of control financial markets, gold and silver and their respective equities remain an obvious haven in the coming storm. As I mentioned last week, the usual suspects have intensified their efforts to suppress the prices of gold and silver as well as the equities of those companies that mine them. As a result, they are now so mispriced with respect to virtually every other asset on the planet, that to not buy them at this juncture will be seen in retrospect as a serious mistake.
There is one other issue I would like to address and that pertains to the actual gold reserves held by the United States. The amount has remained unchanged for decades at 8,133 tonnes, but only the naive now believe that number is real. There has been a constant flow of Western central bank gold into the market to supply physical demand in support of the price suppression scheme in the paper market. With the Chinese and the Russians relentlessly accumulating physical gold in their reserves year after year, this could become a major issue with regards to the US dollar in the future and it will ultimately guarantee gold will be repriced thousands of dollars higher than what is being quoted today.”
Speaking of gold…
In The Footsteps Of Giants
One of the top questions KWN receives from investors about the mining industry is always: “How do you know out of the thousands of companies there are to choose from which will take-off and which ones will falter?” The answer for smart money investors is always to look for proven leaders with previous success as a good indicator of future success. One individual that fits this description is pictured below with multi-billionaire Robert Friedland.
Multi-billionaire Robert Friedland chose this man to lead his expoloration team and it turned out to be a brilliant move because he was responsible for two of the largest and most important discoveries the world has ever seen while leading the team at Ivanhoe Mines. Investors across the globe are now following this man into his latest venture where he will help lead an exploration team where the CEO believes the team will deliver drill results that will send the stock price soaring more than 1,000 percent! Also, a legend in the business just made a 7-figure investment into this relatively unknown company. To get in on the ground floor and learn more about this remarkable company simply CLICK HERE.
***KWN has just released the powerful audio interview with Egon von Greyerz and you can listen to it by CLICK HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: US Dollar Plunge Accelerates As Gold & Silver Power Higher But This Is What Has Everyone Worried CLICK HERE.
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