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All Hell is Going to Break Loose on the Upside in Gold

With the US dollar hitting fresh two year highs, stock markets struggling around the world, and gold holding firm, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman of Leeb Capital Management, to get his take on what is happening. Leeb told KWN there is a huge scandal because “...the banks don’t have the gold the customers are paying them to have on deposit,” and “all hell is going to break loose on the upside.”

Here is what Leeb had to say about the scandal: “Examples that people like Eric Sprott have given, where an individual depositing gold in 2009, when they asked to get their gold back there were long delays. And the gold bars they got back were certainly not the gold they deposited because they came back dated 2011. What’s that all about?”

Stephen Leeb continues:

“What’s amazing to me right now, Eric, it’s come down to a world where the war is between those who believe in capitalism and those who don’t. What is interesting is that you have people on the right and the left that have banded together. They don’t trust government and they don’t trust the system, and who can blame them?

But the real scandal here is the banks don’t have the gold the customers are paying them to have on deposit. And the more countries like China and India accumulate, the more likely all hell is going to break loose on the upside....

Continue reading the Stephen Leeb interview below...

To hear which company $10 billion Sprott Asset Management and Sun Valley Gold

are the largest shareholders of and why click on the logo:

“It’s that simple. And eventually there will be panic because the gold is not there at the banks.

I see massive turmoil. It’s one thing if people want a lot of dollars out of the banks, you just print the dollars. But how are they going to print the gold? I just see massive turmoil when people finally realize the banks don’t have their gold.

You will see governments frantically trying to substitute fiat money for gold because this is going to feed on itself. And you have to keep in mind this is something that has happened all over the world. The banks take in customers gold and charge them fees for storing the gold as allocated, but then they turn right around and lease it out to the market to aid in price suppression.

This is the kind of thing that will end in catastrophe. At some point the government may try to impose some type of controls, but before you get that you could end up with $8,000 or $10,000 gold. I just think this whole situation will end in total chaos. They will be trying to satisfy customers wanting their physical gold by the printing presses and that’s not going to work. It’s not a pretty situation.

So short-term on gold I’m a lot less concerned today. I don’t think gold is going to go much lower than the recent lows because I really see a lot of natural buying in the market. There are a lot of bids not too far below the current price. I think gold looks like a buy right here and now. I would be buying gold and the juniors and preparing for a massive move to the upside.”

Leeb also added: “When you see people like Warren Buffett, it’s just keeps haunting me statements that Buffett has made. He says on one hand not to own gold, but then he admits, in the same statement, that gold is over $1,500 and so it’s up seven times vs the dollar.

It’s a ridiculous contradiction in terms. The only way you can rationalize that kind of thing from Buffett is to say the guy is trying to protect the establishment. He’s trying to protect what is because that’s how he’s done it, and ditto for the bankers and the government.”

The interviews with Jean-Marie Eveillard (oversees $50 billion), Michael Pento and Gerald Celente are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include MEP Nigel Farage, Dr. Stephen Leeb, Rick Rule, Eric Sprott and Art Cashin ($612 billion UBS) by CLICKING HERE.