With gold breaking above the $1,800 level in overnight trading, today King World News interviewed John Embry, Chief Investment Strategist at the now $10 billion strong Sprott Asset Management. When asked about the action in gold Embry stated, “Well I think the action of gold is basically confirming what is happening in the real world. There has been a series of troubling events, beginning with the debt limit settlement, which everybody probably believed would be viewed bullishly and gold and silver would be hammered. When it was looked at closely it was a terrible agreement.
They just kicked the can down the road, they’ve done minimal spending cuts and they have given themselves another 15% on the debt limit, which is allegedly going to carry them through the election. On closer inspection, S&P decided we are going to downgrade the paper. Right there were two events that I would consider very gold friendly.” (more)
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