Today a man who has been involved in the financial markets for 50 years warned King World News that the world is headed for massive chaos as the next global crisis is now set to unfold. John Embry, who is business partners with billionaire Eric Sprott, also issued an ominous warning to investors, “Enjoy Thanksgiving in the United States because after that things may get really unpleasant.”
Embry: “I continue to watch the action in gold and silver with great interest. Clearly the powers that be are expending an enormous amount of ammunition in order to hold the prices at these suppressed levels. They don’t want any excitement to develop in the sector, so right now they are making a stand at $1,200 in gold and the $16 – $17 area in silver….
Continue reading the John Embry interview below…
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“Each time the market starts to pull away to the upside, the paper selling hits the market very hard. This is being manifested now in the massive blowout in the open interest in gold, which has risen well over 100,000 contracts.
The fact is that the Western central bank cartel is selling infinitely more paper gold than what is being dug out of the ground, and it’s being done specifically to hold down the price. So now we have a situation where there are massive short positions in the gold market, and this has happened sub-$1,200.
It has gotten to the point that if we should get a sharp upward move in gold it will be incredibly explosive. And we should see one because of the extraordinarily tight physical market and negative sentiment. So if this were to breakout on the upside we could see some serious fireworks. I’m not just talking about a $100 move — I’m talking hundreds and hundreds of dollars to the upside in the gold market in a fairly short period of time. There would be an awful lot of trapped shorts in that situation and it would create some serious chaos.
Having said that, what remains incredibly discouraging is that there aren’t any real markets in anything anymore. Instead there are just gross distortions of reality, driven by the increasingly desperate actions of the central banks. I noted yesterday that this one of the strongest rallies, if not the strongest, and certainly the most consistent rally in the New York stock market since the late 1920s.
There is no fundamental basis for the stock market rally whatsoever other than these guys are in the market propping it up and trying to drive it forward on extremely light volume. One thing I was taught very early in my career is that a rising market on light volume is a very dangerous market, and that’s what we see today.
So I’m very optimistic about gold and silver but it’s very difficult to time the upside explosion because of the desperate actions of the central banks. I have to laugh when I see mainstream commentary saying that gold is weaker because the U.S. dollar is firmer. If the best they can do in the currency world is move into the vastly over-owned currency of an essentially bankrupt nation, then people can’t own enough gold and silver as far as I’m concerned.”
Embry added: “It should be noted that the market cap of Apple is now above $700 billion. This now exceeds the entire market cap of all the publicly traded companies in Russia. Well, Russia is an extremely resource-rich country, and they have about half the population of the United States. So one U.S. company having a larger market cap than all of the publicly traded companies in Russia is preposterous.
I acknowledge that Apple is a wonderfully run company, but this is madness. It’s somewhat reminiscent of the late 1980s when the Japanese Imperial Gardens and the Royal Palace were reported to be more valuable than all of the real estate in California — and we all know how that ended.
I also have to add that there was an admission by the Ukrainian central bank recently that all the gold was in fact gone. Now they are saying that it is simply a ‘management of reserves.’ Clearly someone in the West told them they better justify why the U.S. took physical possession of their gold.
I also would like to add that I have followed Richard Russell for over 45 years and I have the utmost respect for him. In the KWN piece today Russell he was speaking very positively about gold and silver. But now we have Deutsche Bank saying they are recommending that central banks should purchase gold from citizens since it is an unwanted remnant of crisis-driven investments from 5 years ago.
Here we have Deutsche Bank, which is essentially on life support by the German government, and they are telling people to sell their gold because it’s a remnant of past financial difficulties? This is remarkable. You can’t make this stuff up. When you look at just the small amount of worldwide troubles I highlighted in this interview, you realize that we are quickly headed toward another crisis. So my message in closing is enjoy Thanksgiving in the United States because after that things may get really unpleasant.”
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