My Blog

Stephen Leeb - Silver to Hit $200 Within 24 Months

With the Dow trading up 429 points and gold hitting new all-time highs, today King World News interviewed acclaimed money manager Stephen Leeb to get his thoughts on where things are headed. When asked about the action in the stock market Leeb replied, “Well I think the action in the market, the sharp, sharp decline, it really was an incredibly sharp decline, stems from the fact that investors started to realize that no one in Washington knows what they are doing.

There is no real prospect for coming to agreement...if that’s the hand you are dealt and you’ve got an economy you want to grow, then start talking about cutting taxes or cutting expenditures. But you don’t talk about things you know a big group won’t agree with. What does this make America look like? What does a typical citizen feel when he sees his Congress and his administration with absolutely no plan for a future with growth in it? It makes them feel sick and I think that was really the major reason for the selloff, it was a psychological reason.”

Stephen Leeb continues:

“Beyond that, something that you saw today, you saw the Fed take some meaningful steps, but still the Fed doesn’t have the kind of tools that it would have if interest rates were at 5% or 6%. I mean let’s face it, they have gone through QE1, QE2, now they are probably, some time in the not too distant future, going to go through QE3.

They are going to leave interest rates at zero for two years, I mean they have done things, but there is nothing dramatic that the Fed can do. They (the Fed) have sort of shot all of their bullets, almost all of their bullets, they have maybe one and a half left and half of one at least was shot today.

So if you are an investor, you’ve got a Congress that can’t bring on growth, you’ve got the Fed that can’t do anything. What they are doing is going to knock down the dollar and the euro is absolutely no better. I know I am venting a little bit....

Continue reading the Stephen Leeb interview below...

To hear which company in the gold sector is the single largest holding of

World-Renowned Investment Strategist John Embry

and why click on the logo:

“...but I don’t like being a gold bug, but I don’t see any place that makes any real sense other than gold at this point. There is no currency in this world that can meaningfully stand up to the fact that it’s a reserve currency.”

When asked about the Fed’s actions today continuing to be a policy of weakening the dollar Leeb responded, “It has been my thinking all along, I mean they are just going to print as many dollars as they possibly can. Their balance sheet now is up to about $2.8 trillion. They say they are going to keep it at that level, but they may change the mixture and they are also not ruling out adding to that. Their strategy is to keep the dollar lower.

So where do investors turn? You’ve got to turn to gold. The only asset in my mind that makes any kind of intermediate or long-term sense is gold. That doesn’t mean you won’t have a correction, of course you could. I’ve been saying this for about the last twelve years and if anything my conviction about gold today is stronger, stronger than when gold was trading under $300 an ounce because conditions have gotten that much worse in the world.”

When asked about silver specifically Leeb stated, “My guess is that 24 months from now, that silver coin you are holding that you bought for $35 or $40, you are going to see a $200 tag on it.”

Stephen Leeb also discussed where he sees gold, stocks and other critical markets trading the rest of the year. The KWN audio with Stephen Leeb will be released shortly and you can listen to it by CLICKING HERE.

Eric King

KingWorldNews.com

To return to BLOG click here.