With continued volatility in global markets and oil still trading near the $106 level, today John Embry told King World News the price of silver is set to soar as inventories continue to collapse. Embry also spoke at length about the gold market. Below is what Embry had to say in this powerful interview.
Embry: “I am becoming far more comfortable with the gold and silvermarkets after what can only be construed as an extraordinarily ugly few months. These violent takedowns in the paper market, which bore no relation to what was going on fundamentally, have discouraged so many people.
I guess price action is the thing that drives them crazy because people then start to doubt the fundamentals. But what I see now is very promising….
“I see falling gold inventories almost everywhere. We have seen how much gold has come out of the ETFs, and how much the COMEX inventories have shrunk. And the gold that JP Morgan holds for its customers in its own accounts has also dwindled. All of this is a precursor to a much higher move in the gold price.
At the same time I am getting extremely excited about silver. Eric Sprott’s revelation about all of the silver going into India because of the difficulty in that country obtaining gold due to official impediments, I think it’s a classic case of unintended consequences on the part of the Indians. The last thing the silver market needs is a huge new demand source in terms of trying to keep the price under control.
I am also seeing that JP Morgan is feverishly trying to acquire as much physical silver at the same time they are reducing their paper short position. So I don’t think we have much longer to wait for a real explosion in silver prices. And if I’m right on both gold and silver, this will be seen as the single finest buying opportunity in the entire bull market which is now in its 13th year.”
Today one of the wealthiest people in the financial world spoke with King World News about how he and Eric Sprott became so wealthy. Rick Rule, who is business partners with billionaire Eric Sprott, also spoke about one of the greatest opportunities that he has seen in his entire career. Below is what Rule had to say in his interview.
Rule: “You know, Eric, it’s funny because right now I am up in Vancouver, and looking at the despair in the professional investment community and juxtaposing that with the strange elation that I feel has caused me to feel very contemplative.
One of the things that occurs to me is that this is my fourth major market cycle. The three previous down-cycles that I’ve been through previously were the cause of my personal wealth, and Eric Sprott’s personal wealth….
“It’s interesting that at age 60 I have a lot more patience than I did when I was age 30. And I think one of the things that’s happening right now is the fact that markets and conditions have caused me to be a 3-to-5-year thinker, and most of the people I compete with, who are 20 years younger than me, have a 2-to-3-week time frame.
And the idea that somebody who has a 2-to-3-week times frame can compete with somebody who has a 3-to-5-year time frame is very problematic. What Eric and I are trying to do in very crass terms is go from being quite wealthy, to being ludicrously wealthy.
But the reality is that we are competing with people who are trying to make payments on their 2nd house at Whistler. In other words we are competing with people who are trying to live rich as opposed to being rich, which constrains them to a very, very short time frame.
Certainly I feel bad about having paid $3 for some stock that is selling at 60 cents, but it’s not the first time I’ve ever done that, and it’s certainly not the last time I am going to do that. But what I can tell you is that the money I’ve made in my life has come about through the aggressive deployment of capital at times like these.
Today billionaire Eric Sprott spoke with King World News about the recent raid on gold and silver and noted the massive physical silver purchases that are taking place in India. Sprott also discussed what this means for the shorts in the silver market. This is the first in a series of interviews with Sprott that will be released today. Below is what Sprott, Chairman of Sprott Asset Management, had to say in part I of this remarkable series of interviews.
Sprott: “I just read some data on India. It said that India, last year (in the) first five months, imported 1,900 tons of silver. So far this year they have imported 2,400 tons. Now to understand the significance of this I have to tell you that the amount of tons (of silver) mined (annually) is 25,000….
“At 2,400 tons in the first five months, you are basically talking at least 5,000 tons (of silver) for the whole year. That would be 20% of the world’s (annual) silver production. And this is not going into industrial uses. This is going into savings (for investment purposes).
And there is only a certain percent of the silver market which can go into savings because a lot goes into industrial. But here is the ‘piece de resistance,’ they said (India) imported 720 tons in April (annualize 8,000 tons). In May it went to 900 tons, annualized call it 11,000 (tons). We’re going from 1,900 tons (of silver Indians were purchasing) to 11,000 tons, in a 25,000 ton market. That’s impossible. There’s not that amount of silver available for investment.