This Major Catalyst To Launch Historic Moves In Gold & Silver
With gold and silver surging once again, today acclaimed money manager Stephen Leeb warned King World News that gold and silver are nearing a major inflection point that will launch historic moves in both metals. Leeb predicted that silver is headed hundreds of dollar higher and also discussed what he believes the catalyst will be that will create this historic surge in gold and silver. Below is what Leeb had to say in this powerful interview.
Now,
all of the sudden, every bit of good news on the economy sends the gold
price moving solidly to the upside. Today the U.S. had consumer
sentiment numbers reported that were higher than expected -- and gold
starts advancing to the $1,425 area. Silver also continued its
seemingly relentless advance.
But
circling back to the United States, one of the big decisions being made
is, who will become Chairman of the Federal Reserve? Janet Yellen and
Larry Summers have been considered top contenders. But it is possible
that Timothy Geithner may end being chosen for this position.
Leeb also added: “I
just want to end by talking about silver. Silver has been the star of
the show because lately silver has been gold on steroids. Not only does
silver get the monetary boost, but it’s also getting the industrial
metal boost.
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With gold and silver surging once again, today acclaimed money manager Stephen Leeb warned King World News that gold and silver are nearing a major inflection point that will launch historic moves in both metals. Leeb predicted that silver is headed hundreds of dollar higher and also discussed what he believes the catalyst will be that will create this historic surge in gold and silver. Below is what Leeb had to say in this powerful interview.
Leeb: “Silver
has been the star of the show lately, but I just want to point out that
suddenly good news on the economy is good news for gold. This is a
major trend change. How long ago was it that the U.S. would have good
economic news and gold would take a huge hit?
“We are not just
seeing strength in gold, we are also seeing strength across the board in
commodities. Crude oil is up $3, nearing the $110 level. So we are
seeing very, very big moves taking place right now. We are also seeing
signs of economic growth. Europe has made a bottom. Europe had seen
six consecutive quarters of negative GDP growth, but that has finally
been replaced by a positive GDP number.
One
of the biggest economic stories, however, is China. The Economist, in
their latest issue, had an article discussing the extreme pessimism
toward the Chinese economy. But China is rapidly moving to a
consumer-oriented growth economy.
As
China plans to urbanize the equivalent of 80% of the entire U.S.
population, this will only fuel the need for all commodities,
particularly oil. This will also contribute to the internal spending
and growth in China. The Chinese leadership is also aggressively
attacking corruption in side of China. This will only serve to
strengthen China in the long run.
Larry Summers and
Janet Yellen are both very strong personalities and will run the Fed as
they see fit. But President Obama may decide he will have a better
chance to get the economy rolling and create more inflation by choosing
Timothy Geithner as the next head of the Fed.
The
last time the world saw commodities enter a major period of strength,
which is what I believe we are now beginning to see once again, we saw
the Fed tighten a bit and as commodities began to soar there were
derivatives blowups at major firms such as Bear Stearns, Lehman
Brothers, AIG, etc. This helped to set off the worst recession since
the Great Depression.
Now,
with commodities surging once again, we may well be in danger of seeing
the beginning of a repeat of what set the stage for the massive collapse
of 2008. So I believe President Obama will move to get inflation
soaring in order to wipe out much of the U.S. debt burden, and also to
avoid a repeat of 2008. Regardless of how this all unfolds, I strongly
believe that gold and other commodity prices are set to soar in the
future because nobody running the Fed will pull the rug out from under
the economy.
We
are nearing an inflection point for the price of gold, and I expect that
gold has already begun the advance toward the $10,000 long-term target I
have predicted on KWN. If I am right and Geithner is chosen to head
the Fed, the entire apparatus of the Fed will be in the hands of someone
who is aiming for huge inflation. This is what could seriously unleash
the price of gold.
We
may see some backing and filling in the price of both gold and silver,
but then it will be off to the races. The prices of both of these
metals will literally explode after some backing and filling and
consolidation of the recent price gains.”
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