Today a man who has been involved in the financial markets for 50 years told King World News that the silver market is now set for a historic surge. Below is what John Embry, who is business partners with billionaire Eric Sprott, had to say in this powerful interview.
I would submit that the silver price suppression, which shifted into high gear in April of 2011 as silver approached its historic high of $50, has actually intensified recently as there appears to be a concerted attempt to keep it from breaking above $22 an ounce. A breach of $22 would be a technical breakout that would attract a considerable level of buying.
I want to reiterate that suppressing gold and silver at this juncture is of critical importance to the central planners. With interest rates that bear no resemblance to reality, i.e. terrible paper providing a negative real rate of return, it is essential that sharply rising gold and silver prices don’t tip off the largely unsuspecting public to the real gravity of the situation.
And I would also add that the time is getting short for those investors who have not protected their portfolios with gold and silver exposure. It is worth noting that just last week on the Shanghai Exchange, which will ultimately supersede both the Comex and the LBMA as the primary exchange for precious metals, the front month for silver was trading at an 8 percent premium to London. I think that is an indication of just how tight this market is, and how inappropriate the current silver price is.
This got me looking at the gold/silver ratio, which has been all over the map since the low was set in 1980. That was when the ratio plunged all the way down to 14/1. Back in 1991, when silver was trading at $3.50 an ounce, the gold/silver ratio hit 100/1. It has currently been maintained around 65/1. But I suspect that when this silver bull market really unleashes itself, that ratio will fall to the recent low of roughly 15/1.
Even if it goes back to 30/1, silver is going to rise at twice the rate of gold. So I can’t emphasize enough the importance of people buying physical silver at this time because it is an all-time gift considering the move that is still in front of us.”
Source King World News
Looking for a secure way to buy physical gold and silver?
GoldMoney company offers you 6 months of FREE storage if you sign-up and buy physical metals via www.goldreference.org. Simply choose “GoldReference.org” from the dropdown list, or manually write goldreference, when you open a Holding at GoldMoney. See also our page How To Buy Gold & Silver Online.