Image Via The Globe & Mail
John Embry has been pretty spot on over the past few years with respect to the price of gold, metals, mining companies and massive US bank failures as a result of poor policies at the US Federal Reserve. Given the fact we are heading straight into QE2 to the tune of $100 Billion per month, it is no surprise that Embry continues to believe the strategy is doomed to fail.
Excerpt Via The Good People Over At ZeroHedge:
In a recent interview, John Embry is confident the current Fed policy will lead to hyperinflation, and that he would not be surprised if silver hit $50 within the next few months. (I guess my blog category title is going to have to change from “Silver $30”)
On hyperinflation Embry stated:
“I’m another person that worries hugely about hyperinflation, I mean the monetary path that they appear to be following, I guarantee you will lead to hyperinflation.
Regarding gold:
I think we are still on track post the US elections and the next FOMC meeting, if we get some indication of considerable QE on the horizon, I think that will be fuel again to send the gold price up from here and to get it to 30%+ return for the year.
On a gold squeeze:
I think it could very well happen this time because the physical market is robust, and I’m told there’s not a lot of physical gold available right now…We could very easily overrun the shorts at Comex and force them to cover, even though they have extraordinarily deep pockets. If that happens, we are going to see some really spectacular price moves as a result….I think that’s why when these things move, all the gold stocks, I think you’re going to feel like your hair’s on fire they’re going to move so fast.â€
On Precious Metal manipulation:
….. read the rest of the story over at ZeroHedge.
