Gold re-introduction as currency at $7000 levels: John Embry | | 3

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New York…Gold and Silver prices could shoot up on escalating US and Euro zone problems and the upside could knock your socks off, says John Embry of Sprott Asset Management. He expects gold to be reintroduced into the currency system

“I have seen some wild estimates, $5000 to $10000 in gold. I am not going to say that but it wouldn’t surprise me” says Embry, the man who correctly predicted in the August of 2010 that “if gold is not between $1,500 and $2,000 in the next 18 months, I’m dead wrong” in a mineweb interview.

Embry expects a new currency system to replace the existing fiat money system. However, the amount of money floating relative to the amount of gold available could prove to be a major headache. In such a situation, gold prices will have to shoot up.

“I was at the recent GATA conference over in London and a very smart guy by the name of Jim Rickards was there. He was LTCM’s (Long-Term Capital Management) lawyer at the time that they got into their Gold snafu back in 1998. He is one of the smarter guys that I’ve run across and he made the comment recently that he thinks that they will bring gold back into the system at probably $7000 an ounce. This guy is well connected so when he said that it kind of resonated with me” Embry was quoted by mineweb

He is also bullish on gold stocks and says that the price levels of gold stocks are second cheapest he has seen in his career and the reason the stocks are cheap may be because of the computer algorithm based trading. He expects gold stocks to go up 300% if gold moves up by 50.                                   

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