The upside for gold and silver will knock your socks off – Embry
With no easy solutions to the globe’s debt problems visible, Sprott Asset Management’s John Embry expects gold and silver to be significant beneficiaries but the road ahead will not be easy.
Author: Geoff Candy
….Speaking on Mineweb.com’s Gold Weekly podcast, Embry explains, “We’ve reached a stage in the debt cycle where it doesn’t appear we can move forward and on that basis you need more and more debt creation to generate the same dollar real GDP growth – and I don’t think we can get that kind of debt growth. So to keep these systems stuck together they [governments] are going to have employ quantitative easing in massive quantities, and if they don’t, the current softness in the economy is going to turn into a rout.”
Given the current levels of growth, Embry says, any halt in the funds propping up the banking system will result in significant deflation in “fairly short order” because the deflationary pressures within the West are huge.