John Embry On The Ongoing War In The Gold & Silver Markets

"Today a man who has been involved in the financial markets for 50 years spoke with King World News about the ongoing war in the gold and silver markets.  Below is what John Embry, who is business partners with billionaire Eric Sprott, had to say.

Embry:  “I am focused on the short-term price action in the gold and silver markets, most particularly this morning.  I think the most predictable event going into this week was that the central bank driven anti-gold cartel was going to make sure that there was no follow through on the notable strength that gold and silver demonstrated on Friday....

“The fact that both are extremely oversold and ridiculously undervalued doesn’t enter into the equation when these guys go to work.  Physical gold and silver, which represent the only real money out there with no counterparty risk, are now such a threat to our rapidly crumbling global fiat currency system that the central banks are going to ever greater lengths to hoodwink the public and keep them away from the two assets.

This is because of the simple reason that these are the only two assets that are going to offer protection when this whole massive Ponzi scheme in currencies, debt instruments, and other financial assets implodes.  But I think people have got to understand what’s going on here and realize how inexpensive gold and silver are.  Instead of people selling their gold and silver they should be buying it hand-over-fist and getting out of these overpriced bonds, stocks, etc..

Over the weekend John Hussman said he believes the stock market is overvalued by at least 50 percent.  I have an enormous respect for Hussman’s work and he is basically saying the stock market would have to fall in half in order to represent real long-term value.  To me this is part of the massive mispricing in virtually all financial assets.  But if the stock market is overpriced, the bond market is preposterously overpriced.

At the same time, real assets such as gold, silver, and oil, have been driven down to levels that are preposterously low.  And the price action is driving a lot of people out of the markets and making them do the wrong thing.  This situation is incredibly dangerous in terms of the long-term health of our financial system and people have to understand what’s going on and hold on to their positions in physical gold and silver.”

at http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/11/10_John_Embry_On_The_Ongoing_War_In_The_Gold_%26_Silver_Markets.html