With the price of gold and silver soaring, today John Embry told King World News there is going to be a continued massive surge in the gold price, but the gains in silver will be “historic.” Embry spoke at length about the gold and silvermarkets, the Fed and the mining shares. Below is what Embry had to say in this powerful interview.
Embry: “I’m focused on the better tone in the gold and silvermarkets. It’s been a long struggle, but with all of the information that’s come out recently regarding how tight the physical market is and the fact that the paper gold market really is one of the greatest Ponzi schemes of all-time, I think we could finally be on the cusp of a huge move in gold….
“I’m not talking $100 to $200 move for gold. I mean gold going back to the old high of $1,920 in a fairly short period of time.
One thing that drove me crazy last week was Bernanke’s testimony and some of his statements after the fact. Gerald Celente noted that Bernanke said if the Fed wasn’t continuing to print money, that the economy would ‘tank.’ That’s exactly what all of us have been saying on KWN for months, if not years.
But it’s interesting that Bernanke basically said as much himself, and nobody picked up on it. Bernanke was asked by one of the Congressmen if he was printing money, and he answered, ‘not literally.’ Now what does that mean? If you are creating $85 billion a month to buy Treasuries and bad bank mortgage debt, if that’s not printing money then nothing is.
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.”
With oil trading close breaching the critical $100 level, today John Embry told King World News, “The last thing the world needs at this point is a major geopolitical eruption with disastrous implications.” Embry also spoke at length about the incredible events that are taking place in the gold and silvermarkets. Below is what Embry had to say in this powerful interview.
Embry: “We are in a bottoming process in gold and silver. The intensity of the takedown in gold has been incredible. This was the largest smash in gold since it became freely traded in 1971. Gold plunged roughly 25% during the last quarter.
The only potential negative for gold was this ridiculous suggestion of ‘tapering.’ I don’t think there is any possibility of that taking place. If it were going to happen the stock market would have collapsed. So this was an orchestrated takedown specifically in the gold market, and it’s been a violent takedown which has gone far further than it should have….
“This has injured morale and even made some of the true believers wonder what is happening. But this is how bottoms are made. In the midst of all of this carnage, physical demand is incredibly strong and as a result you have more and more gold leaving the Western central bank vaults.
It’s also obvious that the commercials are in the process of getting long the gold market for the first time in over a decade. I’ve always believed that when we saw the commercials move to the long side of the gold market that it would presage a major up-move.
So the gold market is in the process of moving into a remarkable position right now, and I expect an explosive move higher in coming months. There is nothing positive taking place in the global economy, and now we have this mess flaring up in Egypt which has the price of oil trading near $100. That’s the last thing an already weak global economy needs to see.