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 silver markets. 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.