"If you don’t own gold and silver I think you are making a terrible mistake in this environment"

The gold price traded near unchanged Wednesday, changing hands at $1,744 per ounce as investors and traders awaited news out of Greece.  Greek Prime Minister Lucas Papademos is attempting to convince his fellow politicians to pass a series of austerity measures in order to secure a second aid package and prevent a disorderly default. Gold prices continue to consolidate under the $1,750 level as sovereign debt yields in Europe ease.

The gold price bounced back yesterday from an initial sell-off to finish the day higher by $25.00, or 1.5%, at $1,745.55 per ounce.  The rebound in the price of gold was driven by weakness in the U.S. dollar, which turned sharply lower against the euro currency amid renewed hopes for a Greek rescue package.  The euro reached a two-month high of 1.3269 against the greenback as euro zone officials neared an agreement for the next round of financial assistance to Greece.

“I think the price action to begin the year has been exemplary,” Embry stated.  “Gold has risen the better part of $200 since the end of the year, that’s a lot in a short period of time.  I still believe this is all just a precursor to what will be the finest year we’ve ever had in this bull market.  The best up year, so far, in this gold bull was 36% and I would be surprised if that number were not obliterated this year.  This will continue to be a very strong year for the precious metals and it will leave many market participants shocked.”
When asked about gold equities, Embry responded that “I believe once it (the HUI) stages a material breakout through that level (554), the 800 target I’ve been projecting could materialize very quickly.  These stocks are very cheap and the ones that are the cheapest and most ludicrously priced are some of the smaller producers.”
As for his global economic outlook and the potential impact on the gold price, Embry noted that “The macro picture that is underlying all of this is the untenable debt situation throughout the world.  Outside of China, if you break down the three major economies in the world, Japan, Europe and the United States, everyone of them has a debt situation there is no answer to other than to create more paper (money).  That is the most positive environment possible for gold and silver.  They are going to continue to debase all of the currencies in all of the Western economies to nothing.  If you don’t own gold and silver I think you are making a terrible mistake in this environment.”

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