The upside for gold and silver will knock your socks off – Embry With no easy solutions to the globe’s debt problems visible, Sprott Asset Management’s John Embry expects gold and silver to be significant beneficiaries but the road ahead will not be easy. Author: Geoff Candy Posted: Wednesday , 24 Aug 2011
For many commentators, gold is considered not only a constant store of value but, also, a barometer for the health of the global economic system and the currencies that pump through its veins.
For, John Embry, chief investment strategist at Sprott Asset Management, the current parabolic rise in prices, which have beat even his optimistic performance expectations this summer, is indicative of the unsustainable debt situation in which the world now finds itself.
Speaking on Mineweb.com‘s Gold Weekly podcast, Embry explains, "We’ve reached a stage in the debt cycle where it doesn’t appear we can move forward and on that basis you need more and more debt creation to generate the same dollar real GDP growth – and I don’t think we can get that kind of debt growth. So to keep these systems stuck together they [governments] are going to have employ quantitative easing in massive quantities, and if they don’t, the current softness in the economy is going to turn into a rout."