John Embry will be surprised if gold not up $500 in 6 months

Investment strategist John Embry sees nowhere for the price of gold to go but up

"If gold isn't up at least $500 in the next six months, I will be surprised," says, John Embry, Chief investment strategist at Sprott Asset Management.

Speaking on the Mineweb.com Gold Weekly podcast, Embry said that the price of gold is on the rise for two main reasons.

The first of these is the rapid increase in sovereign debt among many Western nations and the risks attached to it. Embry says while Greece is the one at the top of the page right now it is just one of many countries or states including the UK and many in the Mediterranean and the US which have equally as serious debt issues.

He adds "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.

"We have gone through a period of disinflation, certainly since about 1980. It's over. We are heading into a period the likes of which we have never seen certainly in our lifetimes but maybe the world has never seen before."