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Stephen Leeb - How the Gold & Silver Bull Will Rescue You
With continued volatility in gold, silver and global markets, today King World News interviewed acclaimed money manager Stephen Leeb. When asked about the recent smash in gold and silver and comparisons to 2008, Leeb responded, “Let’s step back for a moment, Eric, because people like to make comparisons to 2008. Well, let’s say you were bullish on gold and silver in 2008 or you had just gotten bullish in 2008 and you bought gold at its high, the worst possible point in 2008, you would have paid roughly $1,000. Today gold is trading at $1,650, so you are up a remarkable 65% today, even though you would have bought the previous high.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
September 27, 2011
Stephen Leeb continues:
“Let’s say you bought silver at the high of 2008, you would have paid $21. Even though silver has fallen from $50, it trades at $32 today, so you still have a 52.5% profit, even if you would have purchased the previous high. That’s what bull markets are really about.
They are not about an asset going up day after day, week after week. Markets don’t behave like that. What they are about, is when you step back, you ask yourself, ‘Is this in an uptrend and is the uptrend sustainable?’ If the answer is, ‘Yes,’ then the market is going to be very forgiving, just like it was for people who bought the high in 2008.
In that sense, if you recently bought gold at $1,900 and you also purchased silver at $50, you’re going to be way ahead of the game come two or three years from now and maybe even much sooner than that.
It wouldn’t surprise me if the recent selling marked the bottom. There was so much pressure on the markets because of margin selling and at the end of the day we had a nasty correction in both gold and silver. There has been a lot of confirmed commentary suggesting that there’s a tremendous amount of physical buying in both the gold and silver markets right now....
Continue reading the Stephen Leeb interview below...
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“It wouldn’t be surprising, however, if gold tested the bottom again. If it does, you have roughly a one hundred dollar risk from this level, but it may not. What it does feel like to me is that the selling, which took place in gold, was not fundamental. It wasn’t the result of anything that changed in the world.
The world has not become a better place overnight, if anything it has gotten worse and I think investors are being handed a great chance to enter these markets. In my opinion, two or three years from now, you are going to be doing so much better than the stock market, so much better than other assets if you are holding gold and silver.
The Europeans are now being forced to print money, like we have, and the Fed is under pressure to go ahead with QE3. We are going to have to, at some point, really have to start thinking about growing this economy and creating new industries or it’s going to be lights out for America.
The reality here is that we are going to have total chaos if we insist on low inflation and the Fed knows this. Inflation will be a strong fundamental behind the move in gold and behind a huge, huge move in silver.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
