My Blog

Embry - Possible High Triple Digit Silver Before This is Over

With gold and silver consolidating recent gains, today King World News interviewed John Embry, Chief Investment Strategist at the $9 billion strong Sprott Asset Management. Embry had this to say about the world’s present situation, “We all know the problems in Europe and in the United States, but there was apparently a failed Chinese auction due to the problem with the local debt over there. There has been so much local debt issued in the last few years as part of this expansion and I guess investors are getting a little indigestion. I think that just brings home the point even more strongly that debt will ultimately bring down the fiat currency system because there is far too much of it and we can’t service it anymore. The idea of repaying it has long since been forgotten.”

Embry continues:

“Clearly they’ve opted in my opinion to go with printing whatever amount of money is necessary to keep this afloat, which will in the end lead to hyperinflation. At that point the debt will be cleaned out in the aftermath. The alternative would be to let it go now by imposing austerity plans in all of the various countries and that would lead to a depression very quickly. I don’t think anybody wants that to happen on their watch, so hyperinflation here we come.”

When asked about Sprott’s new issuance on its Physical Gold Trust Embry said, “Basically it was priced very well, it was priced almost right on the market instead of at a huge discount. It went very well, it was a $266 million issue and if the overage is exercised it will be $305 million, which will buy roughly 190,000 ounces (roughly 6 tons) of gold. In this market that is a lot of physical gold, but I think from every aspect we are very happy with the deal and we are very pleased that the public chose to participate.”

When asked about sentiment in the gold and silver markets Embry replied, “I still think it’s extremely constrained, the average person is still ignoring it. The driving force in the gold market right now is the unbelievable chaos in the world’s financial situation...This is what’s driving the bus right now in the gold market and it doesn’t make any difference what time of year it is, this is reality....

Continue reading the John Embry interview below...

To hear which company in the gold sector is the single largest holding of

World-Renowned Investment Strategist John Embry

and why click on the logo:

When asked about silver specifically Embry stated, “It’s very easy to foresee triple digit silver, I don’t consider that the least bit outrageous and it might be high triple digits before it’s over.”

When asked about Eric Sprott’s call for a move to 840 on the HUI (gold stocks index) Embry remarked, “I would think that’s a minimum expectation. I think that if gold goes to $2,000, which is an easy prediction over the next 6 to 12 months, I see no reason why the HUI couldn’t double (to 1,200). People just can’t grasp that when the time has come for a specific asset class, it’s going to go infinitely further than anybody thinks at the time.”

When asked about his recent trip to Chicago Embry stated, “Well I’m a big baseball fan and I spent the weekend at Wrigley Field. In a nearby bar where we got together before the game, the ticket broker, he’s a local and he knows the neighborhood really well and he was saying the economy is terrible. I said really, tell me about it and he said there’s no work for the people around here. It’s the issue that the manufacturing and even the construction work, the basically uneducated to semi-uneducated used to be able to get good jobs in the United States. That’s all gone.”

The KWN audio interview with John Embry is available now and you can listen to it by CLICKING HERE.

Eric King

KingWorldNews.com

To return to BLOG click here.