John Embry - Gold Will Not Trade Below $1,500 Ever Again
With gold trading $40 higer, silver up nearly $2, crude oil rising $4.25 a barrel and mining shares on the move, 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, crude oil and the mining shares headed from here. When asked about the action in gold and silver, Embry said, “I do think there is a strong probability that the end of 2011 marked the bottom for gold and silver and that may be the lows that will ever be seen. That’s a strong statement, but the reality is gold and silver may never trade lower than that again.”
John Embry continues:
“When gold broke through $1,000, I said it would never trade below $1,000 again and it hasn’t. I now think that, unless we have a complete and total financial collapse in the world, I would be surprised if gold ever traded below $1,500 ever again.
It’s the beginning of the new year and there seems to be a burst of optimism in the air and it’s being reflected in markets. Virtually everything is trading higher today. Things will shake themselves out over the next few months and I continue to think that, by far, the safest place to be is in the precious metals. Gold and silver are on the move today and certainly the metals looked sold out to end 2011. Everybody that could sell did sell.
I had an amazing conversation this morning with a long-time friend of mine, who’s always been gold friendly, and he said, ‘I’ve been reading a lot on the weekend and I got the impression gold is going to be weak in the next few months.’ He asked, ‘Should I sell half of my gold position with the idea of buying it back in the third quarter?’
I said, ‘Are you out of your mind? I don’t know what you were reading, but I would be very surprised, unless the whole world melts down, if gold would be weak at all in the next six months. In fact I would say it’s going to go up $400 or $500 an ounce in the next six months.’ But that’s the kind of sentiment that’s out there and this was from a guy who has been a player in gold for years.
I really do believe that when you get the best and brightest this discouraged, and they can’t see through the gloom, you’ve probably bottomed....
Continue reading the John Embry interview
John Embry continues:
“When gold broke through $1,000, I said it would never trade below $1,000 again and it hasn’t. I now think that, unless we have a complete and total financial collapse in the world, I would be surprised if gold ever traded below $1,500 ever again.
It’s the beginning of the new year and there seems to be a burst of optimism in the air and it’s being reflected in markets. Virtually everything is trading higher today. Things will shake themselves out over the next few months and I continue to think that, by far, the safest place to be is in the precious metals. Gold and silver are on the move today and certainly the metals looked sold out to end 2011. Everybody that could sell did sell.
I had an amazing conversation this morning with a long-time friend of mine, who’s always been gold friendly, and he said, ‘I’ve been reading a lot on the weekend and I got the impression gold is going to be weak in the next few months.’ He asked, ‘Should I sell half of my gold position with the idea of buying it back in the third quarter?’
I said, ‘Are you out of your mind? I don’t know what you were reading, but I would be very surprised, unless the whole world melts down, if gold would be weak at all in the next six months. In fact I would say it’s going to go up $400 or $500 an ounce in the next six months.’ But that’s the kind of sentiment that’s out there and this was from a guy who has been a player in gold for years.
I really do believe that when you get the best and brightest this discouraged, and they can’t see through the gloom, you’ve probably bottomed....
Continue reading the John Embry interview
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