After a wild week in the precious metals markets, let's all end the week with some wise words from legendary investment strategist John Embry.

John Embry

Friday, 02 March 2012 00:00

After a wild week in the precious metals markets, let's all end the week with some wise words from legendary investment strategist John Embry. Mr. Embry is the Chief Investment Strategist of Sprott Asset Management with a focus on the Sprott Gold and Precious Minerals Fund. Mr. Embry is an expert in precious metals and has researched the gold sector for over 30 years! Mr. Embry believes that gold and silver are on the cusp of seeing a real breakout. During our interview, we cover the current state of the market, economy, and what happens to the mining companies if we see an oil spike. Lastly, one of our favorite questions is what does he plan to do when he eventually sells some of his precious metals in the future.

The Two Economic Clutch Type Events Of This Period

Jim Sinclair

"Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. "Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts." -Trader Dan Norcini

Dear Friends,

The history of this period will focus attention on two economic clutch type events. These events will have mandated the need for the construction of a new monetary system utilizing a virtual reserve currency traded only by central banks. This reserve currency will be related to gold via a global Western world M3.

An economic clutch type event is one that by its occurrence allows the world to shift gears and change into a new economic velocity and direction.

The first economic clutch event took place when the decision was made that the US Federal Reserve and US Treasury would not support a rescue of the prestigious investment firm of Lehman Brothers. By doing this, they threw that institution and all of its transactions in which it was the deficit other party into default via bankruptcy.

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Eric Sprott - What Happened in Gold & Silver is Stunning

Today billionaire Eric Sprott told King World News that a staggering 500 million ounces of paper silver traded hands during the takedown in the metals this week. Eric Sprott, Chairman of Sprott Asset Management, had this to say about what took place the day of the plunge in gold and silver: “I can only imagine it’s the same forces that for the last twelve years have been at work in the gold market, trying to keep the volatility very large on the downside. As you are aware, we hardly ever get days when you get an intraday $100 rise in gold. When we look back at what happened (on Wednesday) we saw huge sell orders in gold and silver.”

Eric Sprott continues:


“When I look at the silver market in particular, in a 30 minute span we had sellers of 225 million equivalent paper ounces, in a market that in one year the silver miners only produce 800 million ounces. So again, it’s the paper markets overwhelming the physical market. It’s stunning to me that on a day like Feb. 29th we traded 500 million ounces of silver.

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