Stephen Leeb continues:

“There has been a great deal of political pressure put on China to strengthen the yuan.  The Chinese are responding to their transition to a new leadership.  China’s new leader and leadership should be incredibly strong going forward.  They will prepare the Chinese for the 21st century....

Continue reading the Stephen Leeb interview below...


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“We know this is going to involve more rounds of infrastructure.  Many people say China has overbuilt.  They say China has too much of everything.  This is just nonsense.  Regardless, China’s buildout is going to require a great deal of steel, copper, and yes, silver.

The Chinese leadership needs to worry about future water, silver, and gold supply needs.  On the flip side, a think tank just reported that China has 17 minerals that the West will need.  So China has a bit of a monopoly on certain critical materials.

But China isn’t just going to need gold, silver, and water.  They will also need oil.  What the IEA is saying is a complete joke.  These were the same people that were saying that Saudi Arabia was going to produce 20 million barrels of oil.  Now they are saying US oil production will be greater than that of Saudi Arabia by 2020.

These are crazy times, but yes, China knows they will need gold, silver and oil.  There is surprisingly little gold left in this world.  There is very little left in the ground.  This is one of the major reasons why you see major mining companies having so much trouble with production, even though gold has been in a 12-year uptrend. 

These major just can’t increase production, and increasing capital costs are hurting them as well.  This is why I believe gold, silver and the junior mining shares are set to rise dramatically.  I think this is especially true for the junior miners because that’s the only place where you can find meaningful supplies of incremental gold.

If you look at the hedge fund Baupost, it has one of the best track records over the past 25 years.  Baupost is a major holder of at least three junior gold mines.  These are mines that may not produce gold for at least 5, 7, or even 8 years. 

But Baupost sees it.  They get it.  So investors should own physical gold, physical silver, and they should also invest in quality shares in this space because these junior gold stocks could go up 30-fold over the next 5 to 8 years.  This will happen as people realize they have to own gold because paper money is becoming more and more worthless.

I would also add that this period in front of us is probably going to be the most frightening period of my lifetime, and I’ve been around, and I can tell you the way for investors to weather this storm is going to be through the gold and silver space.”

© 2012 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.

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 Nigel Farage, Bill Fleckenstein, Rob Arnott ($100 billion), Gerald Celente, John Hathaway, John Embry, Stephen Leeb and Don Coxe (BMO $538 billion) are available now.  Also, be sure to listen to other recent KWN interviews which included Rick Rule, James Turk, and Egon von Greyerz by CLICKING HERE.

Eric King

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© 2012 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.

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