John Embry – Silver is Completely Flushed out to the Downside

October 4, 2011

With stocks continuing to struggle and the gold holding near the $1,620 area, today King World News interviewed John Embry, Chief Investment Strategist of the $10 billion strong Sprott Asset Management. When asked about the action in gold and stocks, Embry responded, “I think a lot of it relates to what’s happening in the stock market. Despite the best efforts of the Plunge Protection Team, the stock market had two brutal days. On Friday, the last day of September, they couldn’t hold the Dow above 11,000. Once again, yesterday, despite their best efforts it plunged again.”

John Embry continues:

“But the fact is when this is going on they can’t have gold look good and so consequently they throw everything they can at the gold market. We were $1,680 overseas and once the COMEX gets going they drop the price $50 like it’s nothing. It’s all just paper shenanigans and I guess they are able to access from the various central banks and ETF’s, enough gold to facilitate this activity.

The longer-term sustainability of this is zero and the price is going to go up to levels that nobody is going to be able to comprehend. One technical service that I look at suggests that the window is closing to the downside and this week and today might be the bottom.

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via My Blog.

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