Stephen Leeb continues:

“Gold has been a bit stronger than I thought it would be considering the danger of a euro breakup is accelerating.  I don’t think there’s any chance the euro holds together under its current form.  Unemployment among the young in Greece is about 50%.  That can’t stand, it just can’t.

These politicians can’t do this forever.  People are not going to tolerate starvation.  Sooner or later the politicians are going to have to respond.  This means less austerity and more growth, and the end of German hegemony in Europe.

This looks similar to the end of World War I.  Once the euro goes, it will be very much like the end of the war.... 

Continue reading the Stephen Leeb interview below...


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“You are going to have a lot of currency devaluation.  You are also going to see massive inflation.  Everybody knows what that means for gold.

So you are in the last hours of turbulence for the gold market (to the downside).  Once this correction ends, you are going to have a barnburner to the upside.  Gold will just vault.  I don’t think investors will even remember these frustrating days.  I had been warning we could see this drop in gold because of the problems in Europe, but investors should take advantage of it.

Look at what China is doing.  China is buying gold hand over fist right now.  They are going to move the yuan forward as the world’s reserve currency and it’s going to be partially backed by gold.  The world can also expect to see a gold standard imposed on Europe in the next 12 to 18 months. 

The junior gold stocks, the ones with honest to goodness reserves which have not been developed, they will see one of the greatest, if not the greatest bull market of all-time. 

But many of the big stocks have become like dinosaurs.  Stocks like Newmont and Barrick don’t have enough gold in the ground.  So what’s bad for Newmont and Barrick, is incredibly good for gold.  We are sitting on the cusp of what may be the greatest bull market we’ve ever seen in our lifetimes.”

Leeb also added:  “Prospects for QE3 are rising.  I think the stock market will make some sort of eventual top and just be range bound.  This is what happens when you have inflation taking hold.  We saw this in the 70s when stocks went nowhere for that entire decade, but gold and silver had massive gains. 

The only place to be is going to be hard assets and commodities.  Incidentally, both Glencore and Mitsubishi, two of the largest commodity companies in the world, have come out in the last day or so and stated that “commodity markets are tight.”  Once this is liquidation is over, commodities will go crazy.”

© 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 Bill Fleckenstein and Nigel Farage audio interviews are available now.  Also, be sure to listen to this week’s incredible line-up of other KWN interviews, which include James Turk, Pierre Lassonde, James Dines, Peter Schiff, Jean-Marie Eveillard, Dr. Keith Barron, Eric Sprott 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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