Embry – Relentless Demand Setting Gold Up For A Big Move
October 22, 2012
Today John Embry told King World News, “You have to remember that anybody who thinks gold isn’t a good investment here is voting for currency and the US dollar, and to me that’s almost an impossible argument to make.” Embry also stated, “Under typical circumstances, with the weakness in the gold price and the Dow (on Friday), the gold stocks would normally have been decimated.”
Here is what Embry, who is chief investment strategist at Sprott Asset Management, had to say: “I’ve said to you before, Eric, that I was a little wary on gold because of the large open interest which developed over the last three or four months. I was also concerned with the upcoming election in the US because a rising gold price sends a poor message for the incumbent. So I thought gold would meet a fair amount of resistance in here, and it has.”
John Embry continues:
“Gold has dropped $70 from the peak and was held many times at the $1,775 level. But I think the price action today has been pretty good. I would have expected further weakness after Friday’s action. We did see initial weakness in trading overnight in Asia, but gold has come back and is trading fairly well right now.
I’m encouraged, but I’m particularly encouraged because the gold stocks have started to act a lot better….