Today an acclaimed money manager told King World News for the second week that we are very close to seeing one of the most dramatic reversals in any market in history in the gold, silver, and oil markets. Stephen Leeb also said that one of these key markets will be a stunning 70 to 90 percent higher in 12 months.
Eric King: “Stephen, last week you said we were close to one of the most dramatic reversals in history. Friday was a big up-day for gold. Yesterday and today we are seeing more volatility in the gold market. What are you focused on right now?”
Leeb: “Things are happening right now that no one would have ever believed. For instance, Russia is now going to war with Ukraine — doing whatever they want — and no one is even blinking an eye because everyone knows there is absolutely nothing the West can do to stop Russia….
Continue reading the Stephen Leeb interview below…
“Also, and this is very interesting, Eric, Hungary is led by a man who really believes the West is bankrupt. And if you look at the Hungarian economy it is certainly outperforming the Germany economy, which is the best performing economy in Europe right now. And Hugary’s leader really believes that the way to the future is going to be through economies like China, Russia, and Singapore. These are economies in the East, not the West. As I said, he thinks the West is simply bankrupt.
At the same time we are seeing Chinese President Xi saying that the China has $1.5 trillion they want to invest in the East. They want to get the Silk Road reinstated and reinforce all of the trading relationships with everyone in the East, including Japan. Who would have believed China and Japan would be growing closer?
The United States doesn’t have $1.5 trillion to invest in the East so there is no way they can compete with China. This is why the yuan is gaining in prominence throughout the world, including places like Saudi Arabia.
If we look at Russia, the Russian unemployment rate is about 5.6 percent. The people live very conservatively in Russia, and the Russian economy will struggle this year, but Russia is definitely not falling apart under pressure from the West. And Putin’s approval rating is through the roof. The Russian people don’t like getting pushed around and so they have rallied around Putin.
But Putin has clearly outmaneuvered the West during this entire crisis and now he is in a position to do whatever he wants in the Ukraine, and the West can do absolutely nothing to stop him. Putin has made a very strong alliance with China, and China is busy making alliances all over the world.
What does all of this mean? It means that a new day is dawning and investors will need to protect themselves. I still maintain that the key day will come when you see major commodities priced in gold, or at least partially in gold and perhaps the yuan and a basket of other currencies. We will probably see the ruble in that basket of currencies as well.
It is also interesting that during the decline in the price of oil China has been the largest buyer of oil. It looks like they are using cheap prices to build their strategic reserves. There is a very good reason the Chinese are buying a lot of oil at this time, because it’s not going to stay cheap. Once companies close down fracking sites, it’s not going to be an easy thing to restart the fracking once again.
In fact, it wouldn’t surprise me to see the oil price 70 to 90 percent higher in the next twelve months. This will be incredibly positive for gold and silver prices. The world is changing and the power is moving to the East. Gold and silver will dominate the financial landscape in the future. Right now people are enamored with the stock market but that will change. The change in psychology will be massive and incredibly dramatic and the best way for investors to be prepared for this change is to own physical gold and silver. So to answer your question, yes, we are very close to one of the most dramatic reversals in history and we may in fact be witnessing the beginning stages of that reversal right now.”
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