Embry - Physical Gold & Silver Tight Because of Eastern Buying

With near panic in the gold and silver markets, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management to get his take on where he sees gold, silver and the mining shares headed. When asked about the action in gold, Embry said, “It’s disappointing in the sense that it shouldn’t be happening. I can’t say that I’m totally surprised, you are in the quietest period of the year. These guys (manipulators) are sociopaths. They’ve basically taken the opportunity here to just take gold and silver to the cleaners in the paper market in an extraordinarily quiet period.”

John Embry continues:

“A good friend of mine who has been long the paper market, on and off for the last 40 years, just sold his last contract, which tells you they are driving the paper boys out of the market. I think it’s clear the economic decay will accelerate and as a result, given the debt overload in the system, the only way that it can be supported without a total collapse, is by massive amounts of quantitative easing.

This latest thing in Europe where they trotted out 480 billion euros, call it what you will, that was pure quantitative easing. I just think we’ll see more of that going forward. The physical markets for both gold and silver are tight because of Eastern buying. What it underwrites, for sure, is the greatest percentage gains in this bull market for 2012.

I would be very surprised if gold weren’t up at least 60% from current levels. Silver will be more explosive. What they have done to silver is astounding. In the longer-run it just ensures even greater physical shortages and when that manifests itself, I think the silver price will easily double.

So I think it will be a big year next year. These (metals) are both as sold out as I can remember and the sentiment gets worse and worse, if that’s possible. These are all precursors to a major move and I think it could get started quite quickly....


Continue reading the John Embry interview

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