With gold and silver rebounding, today acclaimed money manager Stephen Leeb told King World News that silver is now setting up to eclipse $100. Leeb believes that China, which has been the primary driver in the gold market, is now going to push the silver price over $100 as their consumption of physical silver is poised to skyrocket. Here is what Leeb had to say in this powerful and exclusive interview.
Leeb: “We are seeing massive demand for photovoltaics out of both Japan and China. We are also continuing to see massive demand for silver in the Middle-East for this type of energy infrastructure as well. Eric, KWN readers need to understand that the demand for silver is literally set to explode because of the enormous increases in demand for physical silver because of photovoltaics….
“While all of this is happening, the mainstream media is saying that China is about ready to fall apart. But the reality is that China plans to urbanize a remarkable 200 million people over the next 10 to 15 years. Well, the cost is roughly $50,000 per person. So China is going to be spending a massive amount of money for materials — copper, lead, zinc and especially silver.
On the heels of the surge in gold and silver, today acclaimed money manager Stephen Leeb told King World News the price destruction we have seen in gold and silver will soon be a distant memory. Leeb also spoke with KWN about the desperation by the West to suppress the price of gold and how it is about to fail.
Leeb: “My thoughts are that Bernanke surprised me last night. He came across as very dovish, and this is a man that knows exactly what he is doing. He doesn’t speak without thinking about what he is saying and what effect it will have. So you have to ask yourself, why was he so concerned about getting across a message that the Fed is still quite dovish, and highly likely to continue for quite some time with QE?….
“There are a couple of reasons: One is the economy is not nearly as strong as what has been painted in the press. So the economy is still in recession. The other concern Bernanke has is that the U.S. dollar has been very strong. Any suggestion of cutting back has seen the dollar surge and that is not what the Fed wants. So the Fed is trying to talk the dollar down.
In that environment, how can investors not be bullish on real stores of value? Whenever a country’s currency strengthens, they immediately do whatever they can to bring the value of their currency down. So gold and silver are starting to surge once again.
I have to tell you that I don’t think the West has given up yet on trying to hold gold down. But right now you have backwardation in gold and that’s rarely ever seen. This is only seen when there is a shortage of gold. Where is that shortage of gold? In the West.
On the heels of continued chaos in global markets, today acclaimed money manager Stephen Leeb spoke with King World News about the gold and silver smash and what investors should expect going forward. Leeb also talked with KWN about one country in Europe that is getting very serious about its gold.
Leeb: “Germany, as we know, is repatriating their gold from the United States. Everybody has talked about that — ‘Why is it taking years to get a few hundred tons back to Germany (from the United States)?’ But guess who else they are repatriating their gold from? France.
Now, the German comment is, ‘Well, there’s no need to store it in France because we’re all one currency now.’ Really? And you expect to remain one currency for the next 10 or 20 years? And if you’re just one currency, why not leave it in France?
Germany is getting very serious about their gold….
“So they are the one Western exception. The rest of the gold is headed East big time … The reason Germany entered my head is because all of the sudden you see Germany, Toronto, London, all vying to be hubs for yuan trading. That’s trading in Chinese currency.
All of the sudden the yuan is on the verge of becoming a reserve currency. If you think that trend is going to stop any time soon, forget it. But Germany continues to go it alone. They continue to be the one European country after gold. They want to be the hub of yuan trading. So you can see how the world is developing, Eric.”
Leeb also added: “This was inevitable that you would have a big decline in gold. Ultimately the West, and in particular the United States, is desperate to keep the dollar at the forefront, to keep the dollar as the reserve currency.