Wednesday, November 9, 2011
Keep buying and stacking physical...
With gold trading at $1,800 and silver above $35, 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 action in gold and silver, Embry responded, “The recent low on gold (at $1,530) was contrived. If I would have asked you two months ago on the 8th of September, when gold was making an all-time high and silver was busting through $40 again, if you knew what was going to happen in the next two months in Europe and the world in general, where would you have estimated gold and silver would be trading?”
John Embry continues:
“I think a rational mind would have said they both would have been trading higher and that’s not the case. I mean gold is still trading $130 below the high from two months ago and silver is $5 or $6 lower during that time frame. So the idea they are getting stronger now, they should be, they should be a heck of a lot stronger than they are now.
If you look at silver there is no bullish sentiment. The reason for this is up until now there has been a wall of paper selling that’s keeping silver trading below $35, and silver has been subject to a couple of vicious attacks recently. So I think people are uncomfortable, but at the same time people who buy physical silver, that’s all I buy, we’re delighted.
I mean it’s hard to get silver and you have to pay premiums for it. The real price of silver is in the physical market. This paper market is a complete and utter sham and when the paper market it broken, and I think we’re close to that happening, silver will double overnight into the $60 to $70 area and that could happen within months.”
When asked about the mining shares, Embry stated, “There is still a lot of shorting activity in these things. I follow a guy who watches the trading daily on the precious metals stocks and he points out enormous amounts of shorting.
There have only been a couple of other times when the shares have been this cheap historically. Anybody who is shorting these things with what’s coming in the gold price, they don’t have a profit maximizing motive....