John Embry - Tremendous Manipulation of Both Gold & Silver

With gold trading at $1,725 and silver above $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, the US dollar and the mining shares headed.  When asked about the Australian Conference, where he was a keynote speaker, and the action in gold and silver, Embry responded, “I just got back from Australia last night and I thought the conference was absolutely outstanding.  It was a credit to everyone involved in organizing the event, it was first class.  As far as the action in gold, I don’t want to be arrogant, but I actually know that we have a big option expiry coming up on Tuesday and this is just business as usual.”

John Embry continues:


“I mean these guys are brutal and the CFTC doesn’t regulate a damn thing.  Like I said, it’s just business as usual.  What’s particularly strange this time is even the muppets on CNBC and all of these people who have to make comments on the action are kind of baffled as to why the prices are going down.  Usually they have some weak reason and they are even out of those.


I think it’s spectacularly bullish that sentiment is so incredibly weak in the metals.  I can’t believe that people are basically being influenced to this degree by price action and they are just ignoring the fundamentals.  That is exactly what the people who are creating the price action want.


I have to respect the enemy because they are good at what they do, even though it’s completely illegal in my opinion.  But they do it well and it works in the sense that the average person, who isn’t prepared to study this closely, is influenced by the price action.


They get their eye off the ball and miss what is really going on, which is the fundamentals are sensational and the gold and silver prices are going to multiples of the current prices in the not too distant future.  And if you don’t own this stuff, you’re going to get killed....


When asked about Paul Brodsky’s view that gold is trading at an 80% discount to its real value and so reactions are irrelevant, Embry remarked, “I couldn’t agree more.  I won’t make a price prediction because what you are predicting is how far currencies are going to fall in value.  They could fall to nothing and so the price of gold could be infinite.


The real issue here is to be long because the trend is up.  It’s been up for eleven years and it’s going to be up for a lot longer and the appreciation is going to accelerate.  It’s really interesting if you watch what’s been going on for the last few years because they have controlled the rise.  They can’t stop the rise, but they can control the speed of it.


The last couple of years gold has been up around 26% and guess what?  They are holding it here right now and if the year ended tomorrow we would be up about the same percentage.  I mean nothing that isn’t manipulated works like that.”


When asked about the mining shares, Embry replied, “Basically the shares reflect the action in the bullion.  And as long as they are making the bullion act counter-intuitively, with a push from them, they have affected the public’s perception of the shares.


So consequently when the gold and silver prices get knocked down violently, the shares check back again.  But this is all going to pass and when you compress a spring, when it goes the other way, it’s going to go violently the other way and that’s exactly what’s going to happen with the shares.  I mean there is going to be five and ten baggers all over the place.”