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John Embry: Gold bull has years and thousands of dollars to go

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December 28, 2009 – Comments (7)

Sprott Asset Management's chief investment strategist, John Embry, explains in detail in the new issue of Investor's Digest of Canada why gold is not in a bubble, why today's gold price suppression by central banks is many times greater than it was in the 1970s, and how declining production has made gold a fantastic supply/demand imbalance investment. Embry's commentary is headlined "Gold Bull Has Many Years, Thousands of Dollars to Go," and you can find it at the Sprott Internet site here:

http://www.sprott.com/Docs/InvestorsDigest/2009/12_24_2009%20Gold%20bull%20has%20many%20years,%20thousands%20of%20dollars%20to%20go.pdf

http://www.gata.org/node/8175

7 Comments – Post Your Own

#1) On December 28, 2009 at 10:06 AM, hrc777 (< 20) wrote:

Binve- Thanks for the input you provide.  This is not really a blog- its a text book.  Massive number of links to go through, will take time, but i know it will be worth it.  Have to agree that the possible outcomes can at best be only estimated.

John has been featured here in Canada on our business network for years.  He always comes across as being very well informed, but his constant emphasis on conspiracy doesnt sit well somehow, even though there must be some validity to some of his statements.  How much??

My own view of this cyclical bull market is that Q4 results have a reasonable chance of being greeted with euphoria, especially if there is acceptable guidance.  I expect Q1 next year could be ugly.  Now- to put a probability on that.....

Anyway, i'm new to tmf, so i have a fair amount of work to do to get up to speed on your analysis,  Thanks in advance.  hrc

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#2) On December 28, 2009 at 10:23 AM, chk999 (99.97) wrote:

The one part of his article I don't get is why would the central bankers want a low price for gold? That doesn't make much sense.

 

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#3) On December 28, 2009 at 10:27 AM, brokerdad (< 20) wrote:

Hype...hype...hype. Follow the lemmings off of the cliff.

http://yieldpig.blogspot.com/

 

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#4) On December 28, 2009 at 10:27 AM, binve (< 20) wrote:

hrc777,

Thanks, I appreciate that!

I am a big fan of Sprott's articles and advice. I have not read a lot of John's articles but I generally agree with most of what I have read. I am not a big "conspiracy guy" either, but if you go to www.gata.org (Gold Antitrust Action Committee), they have done a fantastic job of describing the various manipulations in the gold market. Some of it is exaggerated and some of it isn't. My own view is a bit more balanced but I think there is a very obvious reason for central banks to supress gold prices and that it likely does occur. And like you, I am still working on the "How much??" part of it :)

But at the end of the day, current manipulation or no, faith in fiat currency is crumbling. I am not calling for the "end of the Dollar". I do not think it will become worthless in our lifetimes, but I do think it will be worth a lot less. I think a currency crisis in the Dollar is very likely at this point. And I think people en masse are looking for new curriencies to store their value in (China and India especially) and I still believe gold is a currency, and a very undervalued one at that.

Thanks! Glad you have you here!!!..

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#5) On December 29, 2009 at 10:47 AM, hrc777 (< 20) wrote:

binve- Just saw a note across my screen- says Sprott is forecasting a 40% drop in S&P for 2010.  Also, dont believe J Embry is their cheif strategist but rather their chief precious metals strategist.  ok, I'm being picky.

hrc

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#6) On December 29, 2009 at 10:57 AM, binve (< 20) wrote:

hrc,

Just saw a note across my screen- says Sprott is forecasting a 40% drop in S&P for 2010

That doesn't shock me a bit. I too am very bearish on the market and think it is very overvalued.

Also, dont believe J Embry is their cheif strategist but rather their chief precious metals strategist.  ok, I'm being picky.

Gotcha, I think you might be right. And LOL! no worries on being picky :)

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#7) On December 29, 2009 at 12:03 PM, hrc777 (< 20) wrote:

correction: Sprott said down 40%, didnt say when, but did say we are in 15-20 year bear market

hrc

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