Silver as an investment

Sprott CIS: “This Might Be One of the Great Trades of All Time”

Be prepared for the next great transfer of wealth. Buy physical silver and storable food. / By Henry Bonner /  January 22, 2014

My Interview with John Embry

John Embry is an investment strategist at Sprott Asset Management LP and works alongside Rick Rule and Eric Sprott. Mr. Embry oversaw $5 billion in funds at RBC Global Investment Management before Sprott, and he is a well-known gold and silver bull and considered an influential thought leader on precious metals. I got on the phone with Mr. Embry to talk about gold and silver at the start of 2014…

Hello John, what’s on your mind when it comes to gold and silver right now?

Well, I am really fascinated with the gold and silver markets for a simple reason: I believe that the fundamentals that should be driving the price couldn’t be better. At the same time, because the price of both gold and silver have been driven down relentlessly—going on two and a half years now for gold—the degree of undervaluation against any method that I look at is approaching historic records.

As a result of this counterintuitive price action that we’ve seen in both metals, the sentiment in the market is horrible. I don’t think I’ve actually ever seen people so negative and disinterested in the subject, which I think represents one of the greatest buying opportunities in history.

Do you agree with Eric Sprott on his outlook for gold in the next 12 months (that the price could double in that time frame)?

Yes, definitely; we certainly see eye to eye on the precious metals thesis. And one of the reasons I am buoyed in this is that all of the preconditions for a significant bottom are in place; none more so than the sentiment. I love to see really negative sentiment and right now it’s about as negative as it gets. When you throw in what’s going on in the financial and economics world—what’s really going on, not what the mainstream is telling you—and you superimpose it on that historic undervaluation, I totally agree with Eric’s views on this thing.

We’re not talking small moves here. When this thing really gets going, we’re going to be talking multiples of the current prices. It will unfold over time, but it could happen quickly too.



Thanks to BrotherJohnF