John Embry - Silver to Break $100 in 12 to 24 Months
Many traders have been shocked as gold has already risen $120 off of the recent lows. But silver, which has been quiet for some time, may finally be ready to make a 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 and the mining shares headed from here. When asked about the action in gold, Embry said, “Well, I think it’s putting in a reasonable performance. I’m not going to be excited by gold’s performance until it breaks away from the shackles of the gold cartel and goes up, on a given day, by $50 or $100. Day to day gains are still being limited to 2%.”
John Embry continues:
“Today, China’s gold imports from Hong Kong show they have been going ballistic. These are staggering numbers. Where is the gold coming from? It has to be coming from Western central banks or the back door of the gold ETF. This is wildly bullish and I think there are lots of short positions in the paper market, so I wouldn’t disagree with (John) Hathaway that we will see a short squeeze in gold.
The fact that we had a bad past 4 months, in 2011, has absolutely no impact on the future price of gold. I believe, in 2012, we will easily reach $2,500. That means a 60% rise over the year end close in 2011 and I think that may end up being conservative. So I think, as an example, Rob McEwen is dead right when he says gold will accelerate to the upside as it breaks through $2,000.
The rise we are discussing is the perfect scenario for a massive move in the shares. People who believe the shares are only for trading and will never experience any real action to the upside are not invested in the shares and they are dead wrong....
Continue reading John Embry interview
John Embry continues:
“Today, China’s gold imports from Hong Kong show they have been going ballistic. These are staggering numbers. Where is the gold coming from? It has to be coming from Western central banks or the back door of the gold ETF. This is wildly bullish and I think there are lots of short positions in the paper market, so I wouldn’t disagree with (John) Hathaway that we will see a short squeeze in gold.
The fact that we had a bad past 4 months, in 2011, has absolutely no impact on the future price of gold. I believe, in 2012, we will easily reach $2,500. That means a 60% rise over the year end close in 2011 and I think that may end up being conservative. So I think, as an example, Rob McEwen is dead right when he says gold will accelerate to the upside as it breaks through $2,000.
The rise we are discussing is the perfect scenario for a massive move in the shares. People who believe the shares are only for trading and will never experience any real action to the upside are not invested in the shares and they are dead wrong....
Continue reading John Embry interview
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