Embry – Human Psychology Reason for Mining Shares Disconnect

Truly great buying op, Embry says. 

John Embry, Chief Investment Strategist for Sprott Gold & Precious Minerals Fund tells King world News’ Eric King that human psychology is behind the strange disconnect between precious metals and mining/exploration shares.  “There’s been a total give-up,” he said. 

 The five-decade veteran money manager and resource guru put it this way:  “Gold (investment) funds themselves, they are getting redemptions. If you get a redemption and you are running a gold fund, you’ve got to sell, whether it’s a good idea or not. That’s an issue.

I think there has been a total give up. I’ve been around this business for a long time (49 years), and I remember what happened post Bre-X. Exploration stocks were on the moon when that thing blew up and we went through a three and a half year period where it was just deadly, there was no interest.

 I would dare say it’s worse now and yet you have a gold price which is six or seven times what it was then. It really is remarkable and it’s a testimony to human psychology. This is one of the truly great buying opportunities of all-time.”

 Mr. Embry also believes the physical gold and silver markets are taking control from the paper metal markets.  More at the audio link below. 

 Source:  King World News

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2012/4/26_John_Embry.html