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Post Correction, The Upside For Gold & Silver Is Enormous

Today acclaimed money manager Stephen Leeb told King World News that “... once gold gets past this reaction, the upside is enormous and the same is true for silver.” Leeb also spoke about the dire situation in Europe and the US. Here is what Leeb had to say: “The story in Europe has really taken a dramatic turn for the worse. You now have Germany, the Netherlands, and Finland signing pacts opposing what the ECB wants to do. They are arguing for austerity.”

Stephen Leeb continues:

“They are basically saying we will give Spain a loan if Spain gives up its sovereignty. That’s what it amounts to, they want to extract very strict conditions. You’ve got riots in Spain and you’ve got riots in Greece.

The riots in Spain are really serious....

Continue reading the Stephen Leeb interview below...

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“Spain is divided into three different provinces, and now you’ve got one of the provinces wanting to declare independence. Spain, the country, it could just breakup. Many adults and children are starving.

In the midst of this you have other countries telling Spain it has to become more austere. They are arguing for things that would be even more punitive to the people. So it’s not surprising that you could be seeing a country on the verge of splintering.

In Greece you could have a takeover of the government. It’s happened before in Greece where the generals took over. This is why Draghi is desperate to buy the European debt of these crumbling nations. Until this situation is resolved, people may have periods where they get scared to death because the eurozone breaking up is going to create a short-term panic.

No one is going to be able to value assets properly. It will be hard to know who’s solvent and who’s not. The end result will be tremendous money printing. This needs to be resolved, and as human beings we all want to resolve this in a way where kids are not starving and people are not starving. Even in the US, 50 million Americans are now underfed. How do you come to grips with that?

The inflation we will have to endure to get out of this situation will cause a lot of chaos, but I think that’s where we are headed. But whether we have inflation or deflation, gold is going to be the currency of choice. So far we have not seen much of a setback in gold, even if gold went down to $1,700. But we have to recognize that the selling (of any physical gold) right now are those looking for liquidity, maybe to buy food, who knows?

But the bottom line is we are going to inflate the world out of this debt crisis. All of these central banks stand ready to create more money. So I expect this pull back in gold to be short-lived. Draghi is pushing so hard for money printing because he doesn’t want to see the Europe descend into utter turmoil. That’s why gold will stay strong.

Could gold go down to $1,700? Maybe, but even if it does, I don’t think it will go much lower than that. We’re talking about being 6% off the highs at that point, and that’s a shallow pull back. But once gold gets past this reaction, the upside is enormous and the same is true for silver.”

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 Rick Rule, Nigel Farage, Ben Davies, Dr. Keith Barron, Jean-Marie Eveillard, Bill Fleckenstein, and Egon von Greyerz are available now. Also, be sure to listen to last week’s line-up of other KWN interviews which included and Felix Zulauf, Rob Arnott, Michael Pento, and Gerald Celente, by CLICKING HERE.

Eric King

KingWorldNews.com

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