Embry – $2,500 to $3,000 Gold Could Send Silver to $250
December 8, 2011
With gold trading above $1,700 and silver over $32, 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 and the mining shares headed. When asked if there was any chance for the central planners to save the system, Embry said, “Zero. I’m a huge believer in Austrian economics, so you have to know where I’m coming from. Ludwig von Mises, the Founder of Austrian economics, said it best, when you have an excessive credit cycle you only have two choices.”
John Embry continues:
“You can stop it when it gets beyond where it should be, and it’s way beyond where it should be now. You can either take the pain and clean out the debt or you can continue to try and create more and more debt to keep the other stuff afloat and have a complete collapse of the currency system. Well, we’ve opted for the latter and that’s where we are going.”
Embry had this to say about the action in gold, “We are building a massive base and when there is any bad news for the system as a whole, gold gets clobbered. They do not want it to be seen as a safe haven asset at this point. As soon as Draghi suggested that the ECB wasn’t going to buy the bonds, gold got crushed and it got crushed way more than the Dow. That’s preposterous.