Friday, March 03, 2017

Andrew Maguire and John Embry

March 3, 2017
Featured Guests
Andrew Maguire and John Embry

Show Highlights
  • Andrew Maguire, of Andrew Maguire Gold Trading a 40 year gold market veteran and whistleblower, returns with startling news on the precious metals.
  • Our guest examines the minutiae of the markets noting that decades of manipulation has broken the gold / silver paper markets.
  • As a result, the physical market is reasserting dominance over paper promises.
  • Analysis of the options markets suggests that the 6 major bullion banks via the BOE are locked into losing short-sale positions.
  • Key Point: options analysis indicates a gold fair value of $1,400 given the 92/1 paper to bullion dilution.
  • Within 3-6 months, a short-covering squeeze could launch the markets into orbit, culminating with $2,000+ gold.
  • Even if the US dollar continues to rebound from oversold conditions, the PMs will likely rally along with the Greenback as price equilibrium is reestablished.
  • The manipulators cannot expect another rescue from culpable policymakers by another coordinated sale of 400 tons of gold by the BOE.
  • A COMEX default is inevitable, which will launch the metals into the stratosphere.
  • Our guest warns gold / silver shorts: beware, an inevitable force majeure on the COMEX will culminate in catastrophic losses.
  • John Embry, Chief Investment Strategist at Sprott Asset Management, returns to the program with his thoughts on the precious metals sector.
    The duo caution investors from parking too many investment portfolio eggs in paper assets, stocks / bonds given the abrupt rout in the Shanghai index
  • Conversely, the pullback in the precious metals sector is presenting a golden opportunity to procure value via dollar cost averaging.
  • Given the current mega-discounted prices, gold and silver producers are trading at a fraction of the price of their underlying metals.
  • Our guest notes the Greek nation is bankrupt, but EU economic ministers are constrained from stringent practices, because an exit could damage credibility, sending the dominos falling among other debt laden peripheral members.
  • The guest and host concur that the onus of responsibility for debt repayment falls squarely on the shoulders of the lender.
  • Nevertheless, the easy money carrot is still dangling, as the potential profits are too enticing for some to resist.
  • A mini-case study of Greece vs. Iceland involves the 2008 credit crisis.
  • Iceland emerged in far better economic shape.
  • By managing lenders and focusing on the rights of individuals, unemployment and GDP, economic order quickly revived, relative to Greece, where officials chose to ignore the Icelandic success story (Figures 1.1. - 1.3.).
  • The Icelandic tale resembles a modern economic version of David vs. Goliath.

Show Host
Chris Waltzek Ph.D.
About Chris
Contact Host