GS Bullish...How it Will Impact Gold & Silver

在金銀後, 下一個是銅 !

kingworldnews.com

With gold and silver consolidating, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management. When asked about the tremendous pessimism in gold, Leeb responded, “You are right about the pessimism and I just wouldn’t be surprised to find gold trading at $2,000 by the end of the year. I think the breakout is legitimate and the pullback is natural. I don’t know where else to put money except for gold, silver and maybe a few other commodities. Even if gold doesn’t follow through, as I expect it will, it doesn’t mean a thing. There is no other currency out there that can even remotely replace gold.”

Stephen Leeb continues:

“Resource scarcity implies one currency and that currency is gold. So don’t get shaken out by the pessimism, I would take this pessimism as extremely bullish. If people are pessimistic in the face of a bull market that has continued for more than a decade, that’s great! I want to be in that bull market because it’s just starting. Gold’s potential for price gains is enormous.

Tomorrow and Wednesday should be very interesting. I think the Fed is going to move much closer to QE3. It is much easier to recover from high inflation than from an outright deflationary depression. We have recovered from 20% to 25% inflation in our history. It’s depressions that lead to very, very horrible things in terms of society. The Fed realizes there is a great deal at stake if growth really stops.

As someone who is in the investment community I would buy copper, gold, silver and I would buy commodities in general. So when I say three digit silver and maybe five digit gold it sounds crazy. But does it really sound crazy in light of a firm like Goldman Sachs saying, ‘Copper prices may be unimaginably high with China growth spurring consumption.’

Now I think people ought to stop and think about what that means. Unimaginably high is a very strong adjective and what it suggests is that copper grades are declining and declining very, very fast....

“It also suggests that China’s need for copper is not slowing down and won’t slow down any time soon. This means copper scarcity on an extreme level.

When I gave a keynote speech at a recent JP Morgan gathering of utility executives and energy executives, I asked everybody in the audience, ‘How many of you view copper as a scarce commodity?’ Not one person raised their hand.

Well Goldman Sachs is saying now that it is going to become a very scarce commodity. This will make it harder to build homes or an electric grid as an example. The implications of unimaginably high copper is exactly the kinds of things I’ve been saying, five digit gold, three digit silver, etc.. So on every level investors want to protect themselves.

You have to remember that one of the many byproducts of copper mines is silver. So a shortage of copper is going to mean unimaginably high or much, much higher silver prices.”

Leeb also noted, “America is a great country and if we don’t spend more time trying to protect it and waking up to the problems that are out there, we’re going to lose these incredibly precious freedoms that we have today. We are also going to lose our standard of living which is very, very high. It may not be too late, but it is very late in the day.”