John Embry on silver:
*Silver sentiment is quite negative
*Fundamentals haven't changed
*Current sell-off is counter-trend correction just prior to massive bull move
*Silver to double in reasonably short period of time
For a review of the economic fundamentals driving the price of gold and silver which HAVE NOT CHANGED, click here. While silver could easily correct lower from here with an escalating European debt crisis/collapse, Embry is correct that sentiment is extremely negative currently in precious metals particularly in silver. Combine the negative sentiment with historically low Open Interest and technicals for silver (MACD), and QE3 lurking in the not-too-distant future, and the potential for a massive rally in gold and silver is viable.
I’m just wildly excited about silver. I think it’s been consolidating here between $30 and $35, after having seen $50, and the fundamentals are impeccable. I have no problem with silver doubling in a reasonably short period of time.
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