World To Witness A Frightening & Historic Financial Holocaust
On the heels of gold and silver surging strongly on continued short covering, today a man who has been involved in the financial markets for 50 years stunned King World News when he warned that investors are now going to see a what he described as a “financial holocaust” that will result in the greatest transfer of wealth in human history. He also urged investors to get themselves properly positioned ahead of what will be a frightening and historic destruction of capital. This is without question one of John Embry’s most powerful interviews ever.
Embry: “I’ve thought for a long time that this thing was going to ignite in the latter part of the year, and I think the fuse has now been lit. There is a lot of power on the other side, and they have thrown everything but the kitchen sink at the gold and silver markets, but I firmly believe that they are running short on ammunition.
I would describe what has happened here as catastrophic for the central planners. It feels to me right now like they (central planners) are finally capitulating. They gambled and went ‘all-in’ in an attempt to break the spirit of gold and silver investors around the world....
“As many have talked about on KWN, this clearly backfired, and this backfire will be seen as historic in the fullness of time.
People now understand the idea that there will be any significant tapering is preposterous. Interest rates have already risen dramatically, so any tapering will simply throw gasoline on that fire and torch the banking system which is up to its eyeballs in interest rate derivatives. This would be disastrous for the entire financial system.
Someone recently suggested that there was already a $4 trillion hole in the European banking system. If we look at the Japanese situation, that is totally unstable as well. So the destruction of paper money will only accelerate, and this is what you are seeing reflected today in the prices of gold and silver.
We also have this shortage of physical gold, which is reflected by the fact that the gold lease rates have been negative for 25 consecutive days. We then had the revelation that the Bank of England had dumped a staggering 1,300 tons of physical gold into the market that they were supposed to be safely storing for other countries. The Bank of England wouldn’t even comment, they just pleaded the 5th.
But all of this shows how truly desperate that situation has become for Western central planners, and just how badly their gamble to break the gold market has failed. All of this is shaping up for an explosion higher in the price of gold. We had already been hearing about discussions of a significant revaluation of gold thousands of dollars higher than where it is currently trading, and this is coming from respectable people.
This revaluation would be something to behold, but even in the absence of that, I think the combination of the remarkably negative sentiment, the obvious shortage of physical gold, and the voracious appetite for gold from the East -- from the Russians and Chinese, and even from the Indians who are smuggling gold into the country as fast as they can -- all of this leads me to believe that the price of gold is going to move violently higher.”
When asked about silver, Embry responded: “To this day I am absolutely baffled as to where the physical silver has come from to meet the massive demand. The latest sizable increase in demand has come from India. When you superimpose that on what is still very firm industrial and investment demand for silver elsewhere in the world, it is remarkable that the central planners were able to drive the price as low as they did.
So when the price of silver turns, which we are already seeing, it’s going to turn with a vengeance. No matter how bullish I am on gold, I am way more bullish on silver.”
Embry also added: “I was absolutely shocked by the comments out of Russia last week from (Prime Minister Dimitry) Medvedev, where he advised all Russians to get their money out all Western banks because there was going to be a bail-in. This isn’t some sort of crackpot saying this. We are talking about the Prime Minister of Russia. I was astounded by that ominous warning.
When this all unfolds, I have believed for a very long time that this will lead to the largest transfer of wealth in world history by far. And those people that are in bank deposits, bonds, financial stocks, etc, are going to see their purchasing power virtually destroyed. And those who are invested in hard assets such as gold, silver and the high quality shares, are going to be the beneficiaries of this unprecedented and historic wealth transfer.
We will now see historic and catastrophic wealth destruction. It’s going to be something to behold, and investors who want to survive this financial holocaust had better be properly positioned.”