Gold, silver and hyperinflation - Sprott Mgmt's John Embry

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pinecarr
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Gold, silver and hyperinflation - Sprott Mgmt's John Embry

I learned about John Embry from reading entries by Davos and Zero Hedge.  Given Embry's reputation with a couple of people I respect a lot, I thought others might also be interested in his thoughts on some always popular subjects, gold, silver and hyperinflation. As Zero Hedge succinctly puts it at http://ww.zerohedge.com/article/no-gold-or-silver-bubble-says-sprotts-john-embry:

On one hand, one has professional stock bubble top-tickers (of the variety that would benefit from some error-checking)-cum-amateur precious metal pundits claiming that the gold bubble is unmistakable. On the other, there are those who have made hundreds of millions of dollars for their investors actually investing in precious metals, such as in this case Sprott's John Embry, who states that there is no bubble in either gold or silver.

First, for those interested in gold and silver, check out the article ZH references, "No bubble as gold, silver rise on U.S. dollar woes", at http://www.sprott.com/Docs/InvestorsDigest/2010/MPLID_102210_pg363Embry.pdf .

For those looking for more input on the hyperinflation debate, as well as a discussion on the collapse of the US Dollar,  King World News has just done an interview with Embry entitled , "John Embry - "I Guarantee Hyperinflation:"  While the interview itself is still being prepared for posting, they do have a short article summarizing its content at: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2010/10/27_John_Embry_-_I_Guarantee_Hyperinflation.html.   [hat-tip to Davos from his blog, http://unveilingtheeconomy.blogspot.com/].  Here's a clip:

“Today King World News interviewed John Embry, Chief Investment Strategist for Sprott Asset Management.  John is absolutely convinced that hyperinflation is a certainty.  When asked about Art Cashin’s comments on hyperinflation Embry replied, “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.” “

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2259
Re: Gold, silver and hyperinflation - Sprott Mgmt's John ...

King World News now has the John Embry interview available, at http://kingworldnews.com/kingworldnews/Broadcast/Entries/2010/10/29_John_Embry.html

Among other points Embry makes [major paraphrasing here]:

  • We are in the early stages of a depression
  • What happens on one side of the mountain affects what happens on the other side of the mountain.  On the front side was the biggest, most abusive credit cycle in human history.  So consequently, on the back side of the mountain, he expects a long, drawn-out, ugly  depressionary sequence...Hard to estimate duration, but maybe 15-20 years...
  • Hyperinflation is a currency condition...if you ruin the currencies, you will get hyperinflation,
  • Hyperinflation basically means the US standard of living may fall 30%, 40%, 50%; those are not unreasonable estimates

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