Today John Embry spoke with King World News about the recent action in gold and silver, and what will overcome the massive paper short positions in the silver market. Here is what Embry, who is chief investment strategist at Sprott Asset Management, had to say: “I was struck by a comment from Tim Geithner that the US is going to be phasing out pennies and nickels in early 2013. The reason he gave was that it costs a great deal more to make them than they are technically worth.
“A penny is a penny but it costs almost a nickel to make it. Similarly, a nickel is a nickel but it costs over 15 cents make a nickel. So naturally they are being done away with. This is a perfect example of the insidious inflation in the whole post-war era.
"Now I’m old enough to remember when I could buy a chocolate bar for a nickel, and now there aren’t going to be any more nickels. ..."
Had to laugh at this. I've been thinking the same thing. Plus now they are talking of eliminating the paper dollar bills in favor of a coin.
Click over to read what John says will Break The Massive Silver Short Positions