John Embry - Get Ready for Extreme Money Creation Globally
from King World News
With gold trading down $50 and silver $1.50 lower, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management to get his take on where he sees gold, silver, the US dollar and the mining shares headed. When asked about the smash in gold and silver, Embry responded, “Well I’m not terribly surprised. I mean they’ve got the perfect backdrop against which to drop gold and silver prices. They just lob it into the whole idea that they are risk assets and the whole risk on trade is being taken off because of all of the problems in the background.”

“The simple fact is we’ve got an option expiry on gold tomorrow and until that’s over we won’t have a true picture because they’ve got a vested interest in driving the prices down and they’ve got the environment in which to do it. This has been my mantra (buy the dips) for as long as the bull market has been on.

Do not buy strength in gold and silver because you always are subjected to these paper smashes which create fabulous buying opportunities. If you’ve had that discipline (to buy the dips) for the last ten years, you have accumulated fantastic positions in both gold and silver at (extremely) good prices.”

When asked about the significant volatility on the mining shares, Embry replied, “Well that’s typical. Basically with the stock market down the better part of 3%, this is the perfect environment to abuse the gold and silver shares, which as you correctly point out, in many cases, are relatively illiquid....

“The prices that are being created here are insignificant in the long-run. If anybody is on margin they’ve got a problem and if not and you are smart, you buy more.”

When asked about silver specifically, Embry stated, “The fundamentals are fantastic. It’s a very small market relative to all the other markets and there is a massive paper short who has been manipulating the market violently for years, and we all know who that is.

I mean we shouldn’t be surprised that in these difficult times these guys are throwing everything at it but the kitchen sink. It’s just creating an unbelievable opportunity and when silver is trading at 5 and 10 times these levels in a few years, this will just be a bad memory.”

When asked about Ben Davies comments regarding crash signals and money printing, Embry remarked, “Well I would open my comments by saying Ben Davies is one of the smartest guys I’ve ever met and I’m honored to agree with him.

I think there is no question that when push comes to shove here, and it’s getting real close, the only alternative to a massive deflationary collapse is extreme money creation at all levels and virtually throughout the world.”