The Ultimate Antidote
With global stock markets plunging, along with gold and silver, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. Embry told KWN “There is a war going on right now” because “the pure fiat currency system is on its last legs.” Embry also said “Europe is in desperate shape” and the implications are “horrific” if the US dollar loses its reserve status.
Here is what Embry had to say about gold: “Gold is falling because the powers that be, with their paper shenanigans, are knocking the hell out of it. We see tremendous physical demand. Massive amounts of gold are going through Turkey, into the Middle-East. Chinese imports are strong. To me that’s the ultimate antidote.
“This type of action is always orchestrated at a counterintuitive time, where it doesn’t really make logical sense. It works because it keeps the vast majority of society away from the sector. There is a war going on right now, and they are trying to bolster the confidence level of the hearts and minds of fiat money lovers the world over.
This is happening because what’s going on is Europe is in desperate shape. Spain has announced the government is going to have to bail out the third largest banking entity in Spain. All of these things speak to an enormous creation of new liquidity. Without that liquidity, the system is going to go down.
The underlying problem that goes unspoken is that the pure fiat currency system is on its last legs….
“We are in the final battle, and I’m not surprised these guys would be that vicious in the gold market right now, even though it makes zero sense.
You know the end is coming when the establishment trots out guys like Gates, Munger, and Buffett, who say astoundingly stupid things, for what are otherwise intelligent human beings.
I was particularly offended by Charlie Munger’s statement suggesting the only people that bought gold were the Jewish people in pre-war Vienna, to sew it in their garments, and that no civilized person would buy gold. That was one of the most disgusting statements I’ve ever heard in my life, on any subject.
I mean he denigrated the brave, oppressed Jewish people of pre-war Europe. At the same time, he disrespected anybody who was doing the right thing, which is buying gold in an attempt to protect themselves from a failing fiat currency system. That’s hardly uncivilized, it’s highly intelligent.
The reality here is nothing has changed. When gold was $1,900 last August, at that point the US had just been downgraded. It’s almost like they reacted like a rabid dog. They’ve been fighting this (advance in gold) ever since.
It’s a war because they have to defend the US currency as the world’s reserve currency. If they lose that status, the implications are horrific for the currency and the society. That’s why there is such an intense battle going on because the stakes are so high.
I will be surprised if this goes on for much longer. By the end of the year, this will all be forgotten and it will just be a small blip on the longer-term chart, and the chart will be much higher for both gold and silver.”
Embry also added: “There is a lot of discouragement, and justifiably so, just by the price action in the shares. I was thinking about this last night. When I was managing a dedicated gold and silver equity fund for fifteen years, between 1994 and 2009, there were three or four occasions in that period when my fund was up over 100% in less than twelve months.
If I still had a fund, I know this would be near the beginning of one of those 100%+ up-years. As I look at what’s going on here today, I think this is the greatest opportunity I have ever seen. It’s just a matter of when it activates. I believe it begins when gold and silver make a very dramatic turn higher, and that’s probably more imminent than most people realize on a day like this. My only advice is don’t lose the faith now.”
All Things Considered – John’s Commentary:
Sprott Asset Management and the Sprott Physical Silver Trust (PHYS) are two of the most credible organizations in the precious metals industry. There is no information source deemed more credible.
Quote of the day: “… the price of gold is an international political decision as much as a market decision.” Chris Powell, Gold Anti-Trust Action Committee
