Stephen Leeb continues:

“So we have some very savvy investors moving heavily into gold.  We also have people like legendary value investor Seth Klarman, that are aggressively increasing their positions in the mining shares.  Klarman’s firm has one of the best track records of any fund around for the last generation.

So whether investors are looking to buy gold or quality mining shares, it is important for them to know they are in good company....

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:

“You’ve got a lot of smart people making very, very substantial bets on gold. 

Market action over the past couple of days has been surprising to me.  For quite some time, whenever we would see a strong economic statistic, gold would selloff.  That hasn’t been happening lately.  We are seeing more inclinations to bet on inflation going forward.

We have bonds weakening significantly in the US today and gold is trading higher.  The gold price is really starting to anticipate the next wave of inflation.  I have maintained for some time now that this bull market in gold, that we have seen so far, has just been the first leg of a market that is anticipating inflation.

It’s starting to feel like the bull market is now going to expand.  Once we start to really see inflation take off, you are going to see gold rocket higher.  Gold has done what it has so far with a combination of inflation and deflation.  When we start to see inflation really ignite, that transition in gold is going to be something to behold.  Gold holders are in a very strong position now, with very little downside risk. 

We are going to see things in the gold market that we haven’t seen since the 1970s.  Keep in mind that the whole move during the leg of that bull market, from 1976 to 1980, was an inflation move in gold.  There was no real period of time where we had all of these monetary aggregates build up.  We just went into very serious inflation. 

Gold, between 1976 to 1980, went from roughly $100 to $800.  Well, if you do that kind of math for gold over the next four or five years and you multiply $1,600 by a factor of 8, that takes the price of gold well over $12,000.”

Leeb also added:  “I just want to help people here and my message is to own gold.  But again I have to say something about these junior gold stocks.  For these major gold companies that are looking to replace their reserves, they are going to have to start buying the quality junior gold companies.  Investors can expect to see a lot of acquisitions. 

I would prefer for investors to own these juniors because the quality shares will end up in a mania at some point.  The last leg of the 70s bull market saw incredible gains in junior mining shares and I expect the same thing this time around.  The bottom line is this is an ideal buy point for gold and the mining shares.  As I said, there is very little downside and enormous upside potential.”

© 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 Bill Fleckenstein, Keith Barron, MEP Nigel Farage, Peter Schiff, John Embry and James Turk are available now.  Also, be sure to listen to last week’s line-up of other KWN interviews which included Egon von Greyerz, Micheal Pento, Dr. Stephen Leeb, John Hathaway and Art Cashin ($612 billion UBS) 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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