Embry: Gold Price to Go Parabolic in Near Future – For Good Reason! (+2K Views)

As inflation rears its ugly head and future demand for gold promises to overwhelm mine supply, gold’s price will launch a parabolic rise from current levels in the near future. Gold has much, much further to go.

In further edited excerpts from the original article* John Embry (www.sprott.com) goes on to say:

Inflation
The monetization of various forms of government debt by the printing of large sums of money, disarmingly referred to as ‘quantitative easily,’ is proving to be the catalyst for accelerated inflation and, as such, if inflation gathers momentum, long-term interest rates will rise, which in turn should speed up the weakening of the anemic U.S. dollar.

U.S. Dollar
Furthermore, gold is increasingly asserting itself as a powerful inverse proxy to the dollar. This makes the yellow metal the ultimate safe haven alternative to holding U.S. ‘fiat’ money which is a currency that is not backed by anything of tangible value.

Supply
Then there’s the fact that most of the world’s major deposits are virtually mined-out and new ones are becoming harder to find and more expensive and politically problematic to bring on-stream.

Indeed, Aaron Regent, president of Barrick Gold (ABX), recently told a gold investment conference in London that major gold mining companies are continually struggling to replace mined-out reserves saying, “There is a strong case to be made that we are already at peak gold. Production peaked around 2000 and it has been in decline ever since. We forecast that decline to continue as it is increasingly difficult to find ore.”

Demand
It will not be long before inflation, a debased U.S. dollar, and shrinking global output converge to act a springboard for gold’s ascendency well above the $2,200 level and, at that point, investment demand will explode on a worldwide scale.

Conclusion
The rally in bullion prices is far from over, contrary to what some market pundits are suggesting.

*http://www.goldalert.com/stories/Parabolic-Gold-Price-Rise-Imminent-Asserts-Gold-Bull-John-Embry