Embry: Gartman Inept, CNBC Wrong, Gold Demand off the Hook
April 6, 2012
With tremendous volatility in gold and silver, and oil holding well above the $103 level, King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. Embry told KWN that bullion dealers are telling him phones are ring off the hook and demand is incredible. But first, here is what Embry had to say about recent events and what is happening in the gold market: “I think perhaps the most bullish thing I saw yesterday was that Dennis Gartman has pronounced the end of the gold bull market as a result of the Fed’s actions. Nothing could be further from the truth. Given Dennis’s unbelievably inept record at calling the gold price, in both directions, I regard this event as wildly bullish.”
John Embry continues:
“You also had CNBC, which to me is a propaganda machine, when they are out slamming gold and silver after they have experienced major corrections in ongoing bull markets, again, this is wildly bullish for both metals. I really am intrigued at what is taking place because I think the other side, the manipulators, are seriously over-playing their hand here. The interpretation of the FOMC minutes that there would be no more QE is preposterous.
Last year, when they had about $1.5 trillion in budget deficits, they monetized some 61% of it. I think the budget deficit will be equally as large going forward and there are less and less buyers. So, the idea that there is no QE coming, only a moron would believe that.
With regards to the gold market, the paper guys have basically had their way. Gold bulls were trying to make a stand up at $1,680 a few days ago, and then, just like February 29th, the market was flushed again.
The only difference this time is the gold market was flushed from a much lower open interest position. This means it has a limited shelf life. Physical demand is firm….