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Let Gold Coin Put You in the Eye of the Storm

Investors buy rare gold coins for a great many reasons, but for many peace of mind in the presence of a highly volatile and often unpredictable market tops the list.

In an interview with King World News John Embry, Sprott asset management’s chief investment strategist, questions gold’s troubles over a period that has been anything but “gold unfriendly.”

Somehow people have been convinced “that gold is sold during chaotic times,” Embry says. “That’s just false. Physical gold is not sold during turbulent times, but the reality is the paper gold market does experience heavy, manipulative selling.” The motive is clear.

According to Egon von Greyerz, founder and managing partner at Switzerland’s Matterhorn Asset Management, the derivatives market is in desperate need of “hundreds of trillions of dollars” to maintain liquidity. With stakes that incomprehensibly huge, there is more than sufficient incentive to rig the market to benefit short positions.

Central banks are no less motivated to manipulate gold in the effort to rescue their currencies. Their plight is evident in Argentina’s recent implementation of exchange controls, a lead that other nations, including the US, will surely follow.

Embry sees market interference as “a lot of people trying to make the global economic picture look better than it actually is.” He points to America’s “recovery” as a prime example: “Last year the US monetized 61% of its budget deficit. That’s staggering. I can’t even conceive of that, yet they did it and no one seems to care.”

“People aren’t making the correct connection that gold is what you should be holding in this environment,” Embry says, but he believes that is about to change. “Gold is the mortal enemy of the fiat paper currency system that we are operating and have been operating for 40 years.”

The chaos in today’s economy is on a scale so enormous that the average household investor cannot comprehend the facts, let alone the implications. We have had barely enough time to wrap our minds around hundreds of billions of dollars, let alone hundreds of trillions. Yet intuitively we understand that “Gold is the mortal enemy of the fiat paper currency system.”

“The bottom line is that gold will bounce back violently from this manipulation at some point,” Embry says.

Those who are serious buyers of gold coins know that to be true. Their gold coin investments puts them peacefully in the eye of the storm while havoc is wreaked all about them.

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