Hmmmm, it seems John Embry is also echoing the posts of several of the posters here! My thoughts are it will be banner year for silver and silver producers (UC) should follow! All the best, The Bluenote
Embry - Powerful entity battling silver shorters
January 28, 2013
Today John Embry told King World News that a powerful entity is now battling the powers that be in the silver market. Embry, who is Chief Investment Strategist at Sprott Asset Management also spoke about the increase in net-long contracts in the face of the declining silver price, the silver shortage, as well as the gold market. Here is what Embry had to say in this powerful interview:“I’m focused on this vicious takedown of gold and silver that’s been ongoing for the last month and a half. I’ve been following this story for the better part of 15 years and I can honestly say I don’t think I’ve ever seen a more intense, day after day takedown.”
“When London opened gold and silver were driven down for about ten consecutive days. The COMEX PM close was lower than the AM opening. This just bespeaks very aggressive manipulation. The question I ask myself is, ‘What’s bothering them? Why do they feel they have to do this?’
I think there are a lot of reasons....
“This German news that came out a few weeks ago about them wanting to repatriate their gold is big. I think that’s very significant.
All of the comments coming out of Japan in the last few weeks about them finally capitulating and printing money hand over fist because they finally realize they are being swamped by deflation, that’s (also) hugely bullish for gold. But that sort of thing has to be buried by the powers that be.
It was also interesting last week, the oldest bank in the world, that Italian bank, came out and said they had a major problem in the derivate field. You put all of those (events) together and they are wildly bullish for gold and silver, yet the prices were clobbered.”
Eric King: “You mentioned that last week we actually had an expansion in open interest as they took down silver. It’s not liquidation. It’s short selling by the bullion banks.”
Embry: “It’s wild. One of the days late last week the number of outstanding silver contracts went up over 4,000 contracts. That’s a huge number, and it’s challenging the highs from when the silver price was $3 or $4 higher a month or two ago.
So the fact that there is no liquidation to speak of, somebody is standing in and taking on the powers that be because I think they realize what a strong hand they have (against the manipulators). The silver market is grotesquely undervalued and there are mounting shortages that are being documented all over the place.
I just see a supply/demand picture which is amazingly bullish, and when you superimpose that on existing short positions and the fact that the silver price has been held back so much, when this gets loose and runs I think people will be shocked at how fast it goes and how far it ultimately goes. I will reiterate, I have no problem with silver (priced) in the hundreds and hundreds of dollars.”
This was an incredibly powerful audio interview with Embry. He discusses a powerful force stepping into the silver market to take on the bullion banks. Embry also discusses gold, the mining shares and much more. The audio interview with John Embry will be available later today and you can listen to it: