Today one of the top money managers in the world spoke with King World News about what is going to trigger more stimulus from the Fed and mark the buy point of a lifetime before gold surges above $10,000.
Stephen Leeb: “Oil is on the move as you know, Eric. We have Brent trading at $68 and West Texas crude is near $61. This is up from the fairly recent low of $45. Other commodity prices are also picking up as well….
Continue reading the Stephen Leeb interview below…
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“What we are seeing is a turn in Europe. The previous high in commodities was in 2011. Europe then went into a recession where economic activity declined for six consecutive quarters. I believe that streak was even worse than the Great Depression.
That really marked a top in terms of commodity prices. China is a large consumer of commodities as everyone knows, but declines in consumption at the margin make a difference and that’s exactly what happened when Europe and the U.S. economies tumbled.
Even though the Saudis increased oil production by one million barrels not too long ago, we are now at a point of inflection in the energy market and this puts Janet Yellen and the Fed between a rock and a hard place. Yellen will have trouble as commodities continue to rise in price because it will be inflationary and this will hurt an already weak economy.
Rising Oil Price Will Spell Trouble For An Already Weak Global Economy
Gold and silver will move higher with the rest of the commodity complex. But the key will be what happens with oil. If the price of oil surges to $85 or $90, this will put downside pressure on an already weak global economy.
The Buy Point Of A Lifetime Before Gold Surges Above $10,000
When the economy starts to weaken and additional stimulus is announced, that’s when you need to back up the truck and buy gold. That will trigger the start of the next major bull run in the gold market. So the rise in oil will trigger downside pressure on the global economy and increase inflationary pressures. After a brief bout of downside pressure, the Fed will respond with more stimulus and the gold market will begin the next major up-leg in its secular bull market.
What I am saying, Eric, is that people should buy any major pullbacks in gold with both hands. That will be the buying point of a lifetime. This buying point will mark the beginning of gold’s surge above $10,000 – $15,000. Who knows how high the price of gold will go because there is going to be a lot of chaos.” ***ALSO JUST RELEASED: Cinco De Mayo And What You Need To Know Ahead Of Friday's Important Jobs Release CLICK HERE.
If you are interested in purchasing physical gold and silver for delivery you can call Steve Quayle or his staff at (406)586-4842, or you can email them at info@sqmetals.com
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