I am in Probe Mines mainly for the royalty play on higher gold prices. So, I found the following comments from an interview of John Embry by Gold Report from 9-14-08 of interest. John is making his comments in September when the Philadelphia Gold and Silver Index(XAU) is recovering from an early month low of 112 and trading at around 130. Little did John know, considering his mention of the shakedown from 205 on the XAU Index to 112, that there was more to come. For a few weeks the XAU rallied up to the 150 area and then all hell broke loose. The Index collapsed from there in six weeks all the way down to 63.52. Everything that was mining related had the s*** kicked out of it. Never in the history of the Index had anything like this taken place.

My point is "buying things that are out of favor" gives your the best percentage leverage to the upside later "when the worm turns." As the fight against gold intensifies we need to make adjustments for volatility and its aftermath.

John Embry speaks:

"Things have gone much farther down than I could have imagined in my worst nightmare. If you are confident that the gold price is going higher, this is an ideal time to be picking away and buying a diversified list of very good quality, cheap juniors. I’ve made the most money in my life buying things that are out of favor because there’s no downside risk, certainly from a fundamental standpoint. When the worm turns, these things could double very quickly. When that happens it’ll be hard to buy. Start picking away now, as long as you share my opinion that the gold will see a hefty price rise over the next 12 months."

John Embry also inferred that it was three U.S. banks that were directly and indirectly responsible for the selling chaos that was created in gold and silver and the related companies along with other miners and explorers. On the brighter side, the evolving new power in the world, China, has slowly been showing their support for gold. First they opened gold exchanges, next they invited companies into their country to educate their miners with better mining techniques and handed out some operating licenses to those companies in partnerships, indirectly announced that they will be increasing their gold reserves this year(China mined 290 tons of gold in 2008) and is slowly backing away from fiat currency holdings.

So the bankers can play their little games in an attempt to surpress gold prices with all their little paper charade experiments, market manipulations and the enlistment of supporters in government to do their bidding but the end game belongs to gold, and will always belong to gold.

April 2nd is the date for the upcoming G20 gathering. Expect some pressure on gold immediately preceding and following the big international powwow by the bankers and their troop of puppets and parrots.