Embry - We Are Seeing Mounting Shortages Of Gold & Silver

kingworldnews.com

With gold on the move once again, today John Embry told King World News, “I’m still of the mind that we will be in record territory before year end.”  Embry also said, “We did our bit by buying another $392 million worth of gold for the Sprott Physical Gold Trust.” Embry spoke about silver, “I’m wildly bullish on silver.  I don’t think the physical market has ever been this tight.”  

Here is what Embry, who is Chief Investment Strategist at Sprott Asset Management, had to say:  “I think the action is positive, but at the same time I’m infuriated by the continued interference with the markets by the powers that be.  There is tremendous manipulation going on in both gold and silver right now.  Two days before the QE announcement they dropped the price of silver about $1.50 in a nanosecond.”

 

John Embry continues:

“It’s the same games being played by the same people, and it’s going to end horribly because all the manipulation is doing is creating wonderful buying opportunities for the Chinese, the Russians, and the rest of the central banks that know full well what’s going on.

In the fullness of time, this group of manipulators will be seen to have eclipsed the blunders and the folly of the original London Gold Pool....

“I’m still of the mind that we will be in record territory before year end.  I don’t see any abatement in this monetary easing.  Now that the Americans and the Europeans have shown their colors, it won’t be long until the Japanese are going to have to do something.  They are drowning because their currency is infinitely too high.

The Japanese are going to have to go to the printing press as well.  So this is a global phenomenon, and this is very supportive, over time, of dramatically higher precious metals prices.  You have a perfect confluence of tremendous fundamentals.  You’ve got mounting physical shortages of the metals.  We did our bit by buying another $392 million worth of gold for the Sprott Physical Gold Trust.

But nobody owns gold and silver outside of the true believers, and the sentiment is remarkably negative considering how positive things are at this point.  If you look at the longer-term charts, they are spectacular.  They are supportive of dramatically higher prices. 

The fuse was lit yesterday, but the bottom line is the manipulators will try to keep the gold and silver markets trading in a counterintuitive manner in order to keep as many people away from these markets as possible.”

Embry also added:  “Jeff Christian appeared on Canadian BNN on Monday, which is the Canadian version of CNBC, and Christian had the unmitigated gall to say that he didn’t expect there would be any quantitative easing of any significance when Bernanke came forward, and the commodity complex would be crushed.

He suggested that everybody short gold and silver and everything, and he was looking for $1,550 on gold.  How long does this guy get a free pass?”

Embry had this to say about silver: “I’m wildly bullish on silver.  I don’t think the physical market has ever been this tight.  I see ever greater demand for precious metals, and more and more of it will go to silver because gold will become increasingly expensive.

Consequently, I see the gold/silver ratio declining precipitously, which means if gold is going a lot higher, silver is going to rise multiples of the gold increase.  So I couldn’t be much more bullish.”

Embry has this to say regarding the mining shares:  “Finally the mining shares have rallied.  We had been saying they were grotesquely oversold, and you know my view that it was not natural selling.  There was financial repression, in a huge way, going on in that sector.

Now the unnatural selling we have seen is starting to be relieved.  If I’m right on my gold and silver call, and I’m confident I am, the explosion in the share prices is going to be historic.”