John Embry Says: Hyperinflation + Sovereign Debt = $1500 Gold

John Embry, Chief Investment Strategist at Sprott Asset Management, says he sees nowhere for gold to go but up.In fact he made a very specific Gold price prediction saying, "If gold isn't up at least $500 in the next six months, I will be surprised."

Frankly, that would be a huge move and in order to see this come to pass we would have to see a rather large spike in gold demand rather quickly.At Lear Capital, we are more in the camp that expects to see $1500 gold by year-end.That would entail a move of about 30% higher from today's levels.

Embry, however, does make a strong argument.He believes sovereign debt will create global hyperinflation.He points to the situation in Greece and says the situation there is just one of many brewing around the world.Entire countries and states, including a number of them within the U.S. are in the same predicament as Greece.

Here is an excerpt from a recent Mineweb podcast.

"We are in the early stages of what I think might turn into some sort of a hyper-inflationary condition because there are not enough savings in the world to even remotely service the amount of sovereign debt that is going to be created in the next few years. So you are going to see the creation of paper money the likes of which we have seldom, if ever, seen in history. So, as the value of the paper money goes down because of its proliferation, by definition, gold, which is in limited supply, the price of it will go up in these paper currencies."

Once again another expert draws a correlation between inflation and gold.Embry sees no way to avoid massive printing of money in order to prevent outright default on debt by entire countries and states within them.The U.S. is quickly reaching a point where we can no longer afford the interest on our own foreign debt.

Already, we are having trouble selling off all the bonds put up for auction.It is suspected the Fed is stepping in to buy what others are not.Should there be panic?In my opinion only those without precious metals in their savings and retirement accounts should panic.Buy some gold. Make no mistake, Gold demand is skyrocketing.If you haven't already diversified some of your savings and retirement accounts with gold,these are just a few more reasons why now may a good time to own gold.