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.
The content on this site is protected
by U.S. and international copyright laws and is the property of GoldSeek.com
and/or the providers of the content under license. By "content" we mean any
information, mode of expression, or other materials and services found on GoldSeek.com.
This includes editorials, news, our writings, graphics, and any and all other
features found on the site. Please contact
us for any further information.
Live GoldSeek Visitor Map | Disclaimer
The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy
or completeness of the information (including news, editorials, prices, statistics,
analyses and the like) provided through its service. Any copying, reproduction
and/or redistribution of any of the documents, data, content or materials contained
on or within this website, without the express written consent of GoldSeek.com,
is strictly prohibited. In no event shall GoldSeek.com or its affiliates be
liable to any person for any decision made or action taken in reliance upon
the information provided herein.