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People Are Getting Scared And Liquidating & Germany’s Gold

With global markets trading in the red, including gold and silver, today acclaimed money manager Stephen Leeb spoke with King World News about the action in the metals, and the Germans looking to audit and repatriate some of their gold: “Desperation leads to desperate measures, and yes, could entities be hiding gold or not having what they say they have? Absolutely.” Leeb also said, “... somebody is holding (the price of) gold back.”

Here is what Leeb had to say: “People are getting scared. I guess there’s some liquidation of virtually everything on the basis of these fears. Gold, though down, is certainly down less than virtually every other asset. Even silver, which is extremely volatile both on the upside and downside, is down about 1%, which is a lot less than the market.”

Stephen Leeb continues:

“Even junior gold stocks, the last two days are about flat. They are down today about what they were up yesterday. So I think investors are getting the idea that this is not a sustainable down-move in gold or the precious metals. Basically this weakness in Europe and in other economies is going to result in more money printing, more stimulus.

Eventually they will get it to where we have more inflation....

Continue reading the Stephen Leeb interview below...

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“Now my point and my advice to investors is yes, this is painful. Gold could go somewhat lower, (possibly) $1,670 to $1,680. I can’t say gold can’t go down another 2% or 3%. That’s not a big decline, but you should be thankful you are getting this kind of chance to buy gold. It’s in a range right now.

Once gold busts through that range, and we all know $1,800 is a very important point, once it gets through there you may not get a chance to buy (without chasing gold). There will come a time when you will not be able to get into the gold market, unless you are willing to pay a big premium.

Right now it’s easy to get in, and it’s just the nature of these markets that when it’s easy to get in, you are most scared to enter. That’s what investors need to conquer. You have to buy gold. You have to buy these precious metals. You know that once gold gets through $1,800 it’s going to fly.”

When asked about the Germans repatriating and auditing some of their gold, Leeb responded, “Well, if it’s not there, everybody is going to want to buy gold because it means there is going to be a shortage of (available) physical gold.

If there is a physical shortage of gold, people will be buying gold. Investors will get panicked. That’s the kind of thing that will drive gold instantly and dramatically higher. Desperation leads to desperate measures, and yes, could entities be hiding gold or not having what they say they have? Absolutely.

China’s purchases of gold are up three-fold year over year. The Middle-East is buying gold. Countries that don’t have these currency troubles, they are going into gold. So somebody is holding (the price of) gold back. I don’t know who, but at a certain point that goes.

They give up, and then you go to another level. My guess is that next level is well above $2,000 or $2,500, and you are going to get there very quickly when gold goes.”

This is Stephen Leeb’s most powerful interview on gold ever. He discusses the gold and silver smash at length, and when it will end, hedge fund corruption, Europe, the US, mining shares and what to expect going forward. The KWN interview with Stephen Leeb is available now and you can listen to it by CLICKING HERE.

Dr. Stephen Leeb: Chairman & Chief Investment Officer of Leeb Capital Management and the

author of “Red Alert: How China's Growing Prosperity Threatens the American Way of Life”

Just released, to order from Amazon CLICK HERE.

The interviews with Dr. Stephen Leeb, Rick Rule, James Turk, Egon von Greyerz, Jean-Marie Eveillard, Bill Fleckenstein and Art Cashin (UBS $612 billion) are available now. Also, be sure to listen to other recent KWN interviews which included, Jeffrey Saut (R.J. $360 billion), John Embry and Gerald Celente by CLICKING HERE.

Eric King

KingWorldNews.com

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