With gold settling around $1,375 and silver holding $27.50, King World News interviewed John Embry, Chief Investment Strategist at Sprott Asset Management. When asked about the negativity surrounding the advance in gold and the disbelief in the upward price movement Embry said, “I think it’s very simple, the mainstream press is so negative on gold, and you get all of these high profile commentators like Dennis Gartman and they are always out saying the same thing. They are just sort of putting out the idea that, ‘Oh yeah, it may go a little bit higher BUT then it’s going to get smashed.’”
Embry continues:
“And I think collectively this type of propaganda I would call it, works on the average man’s mind. It’s created a collective negativity which is in my opinion dead wrong, and it just sets the stage for the next big up leg in both metals.”
When asked if we will see a repeat of the mania from late ’79 early ’80 where the share prices of some juniors skyrocketed between 34,000% and 542,000% in price Embry replied, “I would say unquestionably. I have been quoted a few times saying 5 and 10 baggers will be commonplace but I honestly think that this thing is big enough that we will see valuations at stupid prices, the likes of which we haven’t seen since the internet craze. It will be of that magnitude I believe before this thing runs its course.”
When asked why more seasoned professionals were not talking about an explosion in the price of silver John said, “Well, I’ll tell you one pro who’s talking about a blastoff and that’s my partner Eric Sprott, who if you check his record over the last 25 years, he’s probably as prescient as any man on earth. And he said to me the other day, ‘I think this thing is going to be $50 in several months and I think it’s the absolute investment of the decade if not more.’ So, I mean there’s one guy who’s opinion is worth listening to who thinks the silver price is just getting ready to go ballistic.”
Regarding gold Embry stated, “The debt in the system and the whole financial fragility of the whole system does not give them the option of withdrawing liquidity from the system. It forces them to pour more liquidity into the system. So, therefore gold is the monetary metal. It is not gold that’s changing, it’s been money for thousands of years, it’s the value of the paper money that’s changing. And if these people are required to create more and more money to keep the system intact, the price of gold is going to go up in terms of that paper money.”
The complete in-depth King World News interview with John Embry will be released shortly.
John Embry has been in the business for 48 years. At the beginning of the secular bull market in gold, John was the only mainstream (RBC Capital at the time) institutional individual to proclaim the bull market in gold. RBC was saying that’s not the message of the bank, so John was taking a lot of heat for his stance. Fortunately for all of us Eric Sprott hired John out of the mainstream and the rest is history.
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