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.”
October 27, 2010
John Embry continues:
“I think it could very well happen this time because the physical market is robust, and I’m told there’s not a lot of physical gold available right now...We could very easily overrun the shorts at Comex and force them to cover, even though they have extraordinarily deep pockets. If that happens, we are going to see some really spectacular price moves as a result.
...I think that’s why when these things move, all the gold stocks, I think you’re going to feel like your hair’s on fire they’re going to move so fast.”
Regarding the US dollar:
“What it’s really going to collapse against is hard assets...I really don’t think people have any idea the extent to which the standard of living can fall in North America, particularly in the United States. I mean when a currency collapses against everything else, basically that is saying that the standard of living is going to fall.
In fact, it could fall by 30, 40 or 50% just to pick some wild numbers, is not out of the question. Things have been pretty good for the last 60, 70 years in North America, and they think they’ll be good forever. It isn’t going to happen that way.”
John Embry has been in the business for 48 years. At the beginning of the secular bull market in gold, John was the only mainstream (RBC Capital at the time) institutional individual to proclaim the bull market in gold. RBC was saying that’s not the message of the bank, so John was taking a lot of heat for his stance. Fortunately for all of us Eric Sprott hired John out of the mainstream and the rest is history.