April 11, 2016

John Embry: “It appears that some rationality is finally entering the gold and silver markets, following obvious recent suppression on the Comex.

“Very simply, there is a mounting shortage of available physical gold and silver in the Western world. And I believe it has finally started to impact the price, despite the best efforts of the bullion banks to thwart the upward momentum by continually shorting the paper gold and silver markets.

Now, I am proud to say that our firm has hopefully contributed to this (shortage) phenomenon with the announcement that we successfully launched a $75 million offering in the Sprott Physical Silver Trust. As you know, our product is totally backed by silver, unlike some of the paper products on the market. So we will be taking a considerable amount of physical silver out of an already tight market.

I also remain impressed by the relentless strength of the HUI Gold Index, which is now up over 100 percent since January 19th. Historically the stocks have tended to lead the bullion when a big move is coming, so this is a significant development. In this instance, the stocks were ridiculously underpriced relative to the bullion when the move began.

So, Eric, I anticipate that the large upward move I expect imminently in the gold and silver prices will launch these stocks much higher, despite the appreciation to date. In reality, very few investors own them and the entire capitalization of all the gold and silver stocks remains tiny in comparison to the amount of money and credit in the global financial system.

http://kingworldnews.com/gold-silver-surge-as-the-global-and-financial-world-head-into-uncharted-waters/