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Embry Advises Investors to Own Physical GoldandSilver

Release Date: 
Friday, July 20, 2012

Gold prices fell as the dollar rose on increased uncertainty in Europe. Gold was $1.20 lower at 8:17 a.m. Pacific Time on the New York Spot market, trading at $1,581.50 per ounce. Spot silver was $.06 lower, trading at $27.32 per ounce. (Click here for the most current spot prices.)

Spain's Valencia region said it would seek central government help to repay its debts, driving European stocks and the euro lower, along with U.S. equities. European shares retreated from four-month highs as Spain's borrowing costs climbed back above their seven percent threshold, even as Eurozone finance ministers approved a bank bailout plan. Growth expectations for Spain were also revised lower.

"There's additional re-focus back on Spain, and it does look like a little bit of a run on Spanish bonds," said Jim Russell, chief equity strategist at U.S. Bank Wealth Management. "While earnings continue to march forward, we think the macro background continues to soften," Russell said.

John Embry, Chief Investment Strategist of Sprott Asset Management, which manages $10 billion, commented, "as I've been saying for some time, this is one of the great opportunities to load up on as much physical gold and silver as you can get."

Embry suggested that "as the global economy continues to deteriorate, which I believe it will, the natural reaction to that (by central planners) is to create as much money as humanly possible, to make sure that it (the economy) doesn't implode.  To me, that's enormously supportive of higher gold prices."

"We've got a real great opportunity here to buy gold and silver at great prices," Embry said. "Those are the two assets that I'm totally comfortable with in what I see unfolding.  And that is an economy that can't get out of it's own way, which will require massive amounts of liquidity."


(Sources: "PRECIOUS-Gold slips towards $1,575/oz as euro, stocks fall," Reuters, July 20, 2012; "Global shares, euro and oil dip; no respite for Spain," CNBC, July 20, 2012; "Spain Worries Weigh On U.S. Stocks," Wall Street Journal, July 20, 2012; "Embry - Economic Deterioration, Gold & Market Manipulation," King World News, July 16, 2012)

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