Apple Three Times More Valuable Than All Gold and Silver Equities? Not For Long!

Posted by - Wednesday, August 22nd, 2012

Chief Investment Strategist for Sprott Gold & Precious Minerals Fund John Embry had a lot to say to King World News about gold, silver and Apple.

...we see shares of Apple hitting new all-time highs, even though their last quarter wasn’t quite up to snuff. But the market cap of Apple is now greater than three times that of all of the world’s publicly traded gold and silver equities. This will be seen as preposterous in the fullness of time, and I can assure that this will reverse as the bull market in gold and silver mature.

But as he notes, gold and silver are being manipulated by central banks and to maintain price levels, much as they did in the 1960's during the London Gold Pool.

At that time, during the 60s, it was an overt policy that was known, they were open about it. They said they were maintaining the world’s gold price at $35 an ounce. That policy worked until it didn’t work. After it failed the gold price eventually soared to $850.”

So the Western central banks can only get away with this for so long, before they are completely overrun. All this continuous intervention and market manipulation in the gold market is doing is setting up a massive move. I think this is a fantastic buying opportunity, and the fact that everybody is kind of neutral to negative on gold just makes it that much better.

Embry is also quite bullish on silver, even as bearish investors try to keep silver at or under $28 per ounce.

I’m focused on the better silver price, which sort of came out of left field.  Thirty-eight times silver was recently beaten back on a minute by minute basis at the $28 level.  Every time it went though $28 it was jammed back down... $29 is the major breakout and I still believe silver will hit new all-time highs before the year is out. In the meantime, on a break above $29, with enthusiasm and volume, I think that signals the end of the short-term bear market we have been experiencing for the last 16 months. That means the bear phase will have ended and a new bull move will now begin.

A full transcript of the interview may be found here. Emphasis was added to all quotes.

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