Embry – London Trader, Commercials & A Spike In Gold
October 18, 2012
Today John Embry told King World News, “What the London Trader was discussing with you was the fact that we were within $10 of a commercial signal failure, which is just astonishing.” Embry also stated, “These commercials are incredibly short … So if this market starts going against them, the price rise will be extraordinary.”
Here is what Embry, who is Chief Investment Strategist at Sprott Asset Management, had to say: “Im focused on two things in the short-term. I’m not too concerned with the fact that gold is being knocked around here. There are two factors at work. One, and the ‘London Trader’ spoke so eloquently of it in your interviews with that source, is this massive short position by the bullion banks.”
John Embry continues:
“They (the commercials) will move heaven and earth to protect this short position. As a result, I think we are going to battle here. But the great news is, unlike the old days when they could really smash gold, this physical demand is building up underneath the market, so the downside has been contained.
When the access market opened up for trading on Sunday night, gold and silver were taken down (as Norcini had predicted). So they were basically taking the market down when the physical market was closed….