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« Buy This Dip | Main | Agnico-Eagle Mines Limited Options Update »
Wednesday
Feb032010

Gold to hit $1,350 - $1,400 by late Spring - John Embry

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A very bullish statement from John Embry of Sprott Asset Management found in this article on Mineweb may be of interest to you and put a smile on your face.

Gold should continue to consolidate over the next few weeks but, the next big move is likely to be up.

This is the view of Sprott Asset Management's chief investment strategist John Embry, who says he is looking for the price of the yellow metal to hit around $1,350 to $1,400 by late spring.

Speaking on the inaugural Mineweb Gold Weekly Podcast, Embry says the recent downward trend seen in the gold price is nothing more than a healthy correction.

"Gold had a 300 dollar plus run in US dollars from July into the early part of December and it has come under heavy pressure subsequently. It certainly has engendered immense bearishness amongst the commentators which is actually good from my perspective. I think the fundamentals are undisturbed and as a result it is setting up for another strong buy."

Asked about the link between gold and the US dollar, especially the recent strengthening of the dollar against the euro, Embry, says, while there is often a very clear link, the problems in the US and, by extension, the US dollar, are everywhere - especially given the huge budget deficit it is sitting with - so "the idea that one should run away from gold and into the US dollar because it is strengthening against the euro and several other currencies to me is actually preposterous.

"The idea that the US dollar is a safe haven today is flat out wrong," he added, "and that is going to be one of the major factors that are going to change the perceptions in the gold market going forward."


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Reader Comments (3)

by late spring of 2015 perphaps? i added more shorts on tuesday and now happily riding the downside. target is 880/850 and 12.80 in silver. as long as the bulls keep buying there is not going to be a bottom

February 4, 2010 | Unregistered CommenterDi

He's smoking something....900 much more likely the way the action is going right now.....!

February 4, 2010 | Unregistered CommenterS

I tend to agree with John. Many are jumping to the "safety" of the USD$, but that can only go so far, and go on for so long. China,India,Brazil,Russia and many others are looking to diversify out of the USD$ and the only practical place to go is Gold. It may bounce down some on the recent news, but there is no question that it is heading north sooner rather than later.
What would you rather own, something that has always been used as real money, or USD$ that have been diluted by more than $6 Trillion in just the past year alone?

February 5, 2010 | Unregistered CommenterWiz

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