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Patrick MontesDeOca
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Published Technical Analyst, Author, Commodity Trader, Systems Developer, Algorithmic Intelligence, Computer Modeling of Processes. I custom build Proprietary Artificial Intelligence for each individual client's portfolio needs. After more 30 years in the business, Patrick MontesDeOca has... More
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  • John Embry; "Do Not Sell Your PMs" 0 comments
    Apr 12, 2013 4:37 PM

    John Embry

    Chief Investment Strategist

    On the day the gold and silver markets experienced another wave of "Manupulation" by trading over 30,000 contracts short within approximately one hour -- and a report by the Comex warehouse indicating inventories in gold at the lowest levels ever -- I found myself calling John Embry for an interview to find out what he thought of this action.

    This Is What He Said
    This is an overt totally manipulated attack on the alternative forms of money by the powers-that-be. Strangely, this demonstrates the degree of their desperation as financial and economic conditions continue to deteriorate alarmingly behind the scenes despite the feel-good rhetoric from the mainstream media.

    Gold and silver were at potential upside breakout levels on Tuesday at $1583 for gold and $28 for silver. This prompted a release of four so-called news items construed as bearish for the precious metals.

    Goldman Started It
    He continued, The first was a report from Goldman Sachs calling for gold to fall to $1450 per oz and announcing the ignition of a short position. The fact that there was no rational documentation supporting this position told you all you had to know.

    Then there was the leaked Fed minutes suggesting there was dissensions among the governors concerning the future magnitude of quantitative easing. That was totally bogus because any meaningful cessation of Q.E. would lead to sharply rising interest rates and would see the U.S. economy collapse in a smoking rain.

    Crying "Cyprus'
    Then came the story that Cyprus would be forced to sell a significant portion of its gold reserves. The fact that it was totally untrue and denied by the Cypriots was bad enough but the fact that the amount under discussion was worth less than $500 million showed its utter irrelevance.

    Then Ms. Lagarde from the IMF made a statement concerning improving conditions in Europe that was total balderdash. Under the cover of these stores gold was knocked down some $25.00 per oz, which proved to be a mere precursor to today's all out attack on both gold and silver.

    He pointed out, the bullion banks who have orchestrated a lot of this activity know they are ultimately on the wrong side of this trade and they are moving heaven and earth in an attempt to reverse their positions to the extent possible. Investors the world over being panicked out of the very investments which will be their salvation when the true tsunami of financial and economic distress hits.

    Do Not Sell Your Positions...
    He emphasized emphatically. The short-term downside is indeterminate but both gold and silver will recover faster than they have gone down and I fully expect new all-time highs before the year is out.

    John Embry joined Sprott Asset Management LP as Chief Investment Strategist in March 2003. He plays an instrumental role in developing the corporate and investment policy of the firm. John, an industry expert in precious metals, has studied the gold sector for over thirty years and has accumulated industry experience as a portfolio management specialist since 1963.

    After graduating from the University of Manitoba with a Bachelor of Commerce degree, John Embry began his investment career as a stock selection analyst and Portfolio Manager at Great West Life. He later became Vice President of Pension Investments for the entire firm. After 23 years with Great West Life, John became partner at United Bond and Share, an investment counseling firm acquired by Royal Bank in 1987. John was named Vice-President of Equities and Portfolio Manager at RBC Global Investment Management, a $33 billion organization. There he oversaw $5 billion in assets, including the flagship $2.9 billion Royal Canadian Equity Fund and the $250 million Royal Precious Metals Fund, the #1 ranked fund across the country for its 2002 net performance of 153%.

    The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AGQ, DBS, DSLV, PSLV, SIVR, SLV, USLV, USV, ZSL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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