Stephen Leeb continues:

“In fact, the inflation may even be fostered by the Fed.  Brent crude is trading over $112 again, and gas at the pump is already rising.  Bernanke today, I’m quoting a headline, ‘Bernanke says economic data may mask suffering of individuals.’  I agree with that, but I’m still surprised to hear a Fed Chairman saying that.

Another individual on the Fed Open Market Committee said, ‘Open-ended easing is needed for jobs.’  This is the type of commentary we are seeing, even with commodity prices starting to rise....

Continue reading the Stephen Leeb interview below...


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“I don’t believe you will see any effort on the part of the Fed to check inflation this time around.

So going forward I think what the US is looking at is quite possibly a catastrophic economy, and a highly inflationary economy.  The gold market will be on fire by then.  Tragically, a lot of our gold will be in vaults in the East, not our own, and that’s a shame, it really is a tragedy.

Right now gold is hated.  No one wants to hear anything about gold.  I was telling a friend of mine who is a producer at a major network to buy into the sector.  She said, ‘I can’t buy anything gold, nobody likes it.’   She was telling me that no one coming on her network likes gold.  Everyone dislikes it.

So gold is not on anyone’s list.  Despite the fact that gold is hated, it is still trading higher for the year.  The fact that no one in the mainstream media is talking about gold is kind of anomalous.  And if they are talking about gold they are bashing it.  It’s actually frightening to me that virtually no one in the United States is focused on gold.

The Chinese accumulation of gold has been described as ‘relentless.’  But it was just reported that China has started shutting down a lot of their unsafe mines.  They have just been mined out.  The fact that China is shutting down a lot of mines just supports the reporting by KWN that the Chinese demand for gold is ‘insatiable.’ 

The Chinese are beginning to have problems procuring gold through their current mining activities, so this is highly supportive that they are in fact buying large amounts of gold in the open market.  The fact is that the Chinese imports of gold have been going ballistic for some time now.

We can see they have been importing up to 100 tons of gold per month into China.  Now we know why, because they are having trouble with production.  We have seen an exponential increase in the amount of gold China has been importing.

So when you look at the fact that virtually no one in the West likes gold, but China is importing as much gold as they possibly can, you realize that gold is set up for a major spike at some point. 

The real key here is investors need to buy quality junior producing gold mines and quality junior exploration companies.  Fortunes will be made by savvy investors in this sector.  We saw a mania in the gold shares at the end of the 70s and we are going to see one again this time around.  It’s just a matter of when, not if.”

© 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 John Embry, Egon von Greyerz, James Turk, Dr. Stephen Leeb, John Hathaway and legendary Art Cashin ($612 billion UBS) are available now.  Also, be sure to listen to last week’s line-up of other KWN interviews which include Gerald Celente, Don Coxe ($538 billion BMO) and Eric Sprott 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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