With gold down $35 and silver trading $1.25 lower, today John Embry told King World News that current economic conditions around the world are deteriorating rapidly. Embry, Chief Investment Strategist at Sprott Asset Management, also said that in the midst of these deteriorating conditions we are seeing aggressive manipulation. But first, Embry had this to say about what is happening in the gold market: “You are seeing gold take out some short-term technical support levels. I guess the next one of significance is at $1,650. If gold were to take $1,650 out, that would get more of the hedge funds and the algorithm traders shorting.”
“But it’s all just paper. I can assure you that there is very little physical gold being sold at distressed levels here. Any transaction in physical is probably being motivated by the buyer who is taking advantage of these low prices.
"I would also note that the open interest is coming down quite sharply in gold. It’s always uncomfortable in the short-run when the open interest is dramatically increasing because you know they are setting it up for another takedown.
"In the end this action is totally meaningless...."