Author: Geoff Candy
Posted: Wednesday , 25 Jan 2012
While not something he wants to see happen, Sprott Asset Management's John Embry says, he can't see the global financial situation improving, which has bulilsh implications for gold.
GRONINGEN -
The 12th year of gold's bull cycle could well be the best to date for the yellow metal, if Sprott Asset Management's John Embry is correct.
Speaking on Mineweb.com's Gold Weekly podcast, Embry said, "If the economies are as damaged as I think they are, particularly in Europe, (I don't think they are as good in China or the US as they are trying to crack them up to be).... I think gold and silver prices could conceivably see the biggest percentage gains this year that they've had in the entire bull market"
He says, although he doesn't want to be right, he can only see two realistic scenarios - both of which are bullish for gold. If the world stops supporting the debt in the system, the global financial system will face a hard deflation event, or he says, the continued creation of debt will result in mounting inflation down the road.
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