Stephen Leeb continues:

“So I’m looking at an index on my screen that I think can go up ten fold over the next few years and it’s the junior gold miners.  This is an index (the GDXJ) in which many of the stocks are selling at literally dimes on dollars or nickels on dollars.

I mean they have been so decimated.  The index has lost 50% with gold just standing still.  It doesn’t make a lot of sense.  These senior gold companies are struggling because there is very little gold left in the ground and when you are a big company that can have a very big impact....

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“But these juniors will be the place where some of the additional gold is going to come from for many of the large mining companies.  To see these junior stocks trading at these kinds of values, it boggles the mind. 

I’m not saying the junior index couldn’t go a little lower, but what I am saying is that you can make a very credible case, not even based on gold going to $5,000 or $10,000 which I think is possible, but with gold just going to $3,000 or $3,500, this index could be trading close to 200!”

Leeb also added: “I’m also looking at JP Morgan, and it’s down another 3% today.  Here is a stock which is the leading financial institution in our country and it’s lost about 1/3 of its value.  When you see that type of financial entity lose that type of value, what does it say about this country and our currency?

It doesn’t say very good things.  It says you have people running this massive financial institution that are gambling with their money.  These are people that are supposed to be experts at risk mitigation, how can they not know how large their loss will be?

But in reality you have two bad currencies and gold is going to win this battle.  When the Europeans decide they’ve really got to reflate, gold is going to take off in a big way.  This is a nerve-racking time for holders of gold and the shares, but it’s an exciting time.  People may be frowning right now, but I can tell you a year from now they will have smiles cheek to cheek.”

Leeb warned about Israel striking Iran: “People have sort of forgotten about Israel and Iran, but I wouldn’t forget about it.  What you’ve seen in Israel with (Israeli Prime Minister) Netanyahu securing a new government without elections is very unusual.  In the past, when you’ve seen that kind of thing happen, it’s usually in preparation for Israel doing something (militarily).

I don’t think people realize that two of the closest politicians in the world, that confide in each other on all sorts of things, are none other than Netanyahu and Mitt Romney.  So if Romney were to win (the US Presidential election), and he certainly has a good chance of winning, the chances of Israel striking Iran go up significantly.

I see no chance of anything constructive taking place in those talks between Iran and the West.  Iran may do something to get the West off their back for a while, but ultimately Netanyahu has made up his mind that Israel needs to do something.  The bottom line is Israel is prepping for war.”

© 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.

The Eric Sprott and Peter Schiff audio interviews are available now.  Also, be sure to listen to this week’s line-up of other KWN interviews, which include Rick Santelli, John Embry, Michael Pento and more 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.

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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