Today one of the top money managers in the world spoke with King World News about Greece's pivot toward Russia and China and what this means for the gold market.

Stephen Leeb:  “What is happening in Greece is much more than meets the eye.  People focus on the monetary implications and whether or not the eurozone will fall apart if Greece leaves, etc….

Continue reading the Stephen Leeb interview below…


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“The monetary consequences of Greece leaving the euro will be a mess but they are manageable.  But there is a major threat to the West in general.  Greece has been very actively talking to both China and Russia.

Greece Sees Its Future Lies With Russia And China

Greece has a port city that is very critical in the whole scheme of East – West trade.  The Chinese already have blueprints for a train that will start at that key port city in Greece and go all the way up to Budapest.  This will make that port the largest in the Mediterranean and it will be controlled to some extent by the Chinese.

Russia is also looking to put a gas pipeline that runs through Greece, into Europe.  Greece would then become the major artery for gas flowing from Russian into Europe.  These two developments put Greece in a very good position longer-term.

If Greece drops out of the euro it will be tough for a while and they would suffer serious inflation.  Most countries going through a big transition suffer great inflation.  But if Germany continues to push Greece around with regards to how they govern their own country, the Greeks now have a couple of powerful friends in Russia and China.

A statistic that stunned me is the fact that Greece already imports more from Russia and China than they do from their two largest European trade partners.  So if Greece pivots to the East, that’s another big blow to the West.  This is just another sign that economic power is flowing faster and faster from West to East.

Another major problem for the West is the fact that the dollar cannot retain its reserve status.  With gold valued at less than $1,200 today, the value of all the gold supposedly held in central bank coffers is only $2 trillion to $3 trillion.  That sounds like a big number but in reality it’s not.

Move Higher In Gold Will Be Quite Violent

I said last week's KWN interview that the value of gold will eventually pass the Dow, which is currently at $18,000.  Every time I pick up a newspaper and see economic power and activity shifting to the East, that prediction moves closer and closer to becoming reality.  The eventual move will be quite violent as reality finally sets in for the West.

There are virtually no financial advisors in the West telling their clients to own physical gold and silver.  When the rush into gold begins in earnest, that $2 trillion – $3 trillion of gold that is supposedly held in central bank vaults will be gone in a flash or the price will have to skyrocket.  That will all be part of why the price of gold will eventually break above 1/1 with the Dow in terms of the ratio.” ***ALSO JUST RELEASED: Legendary Benjamin Graham's Take On The Irrationality Of Markets CLICK HERE.

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Eric King