Pedal to the Metals

In an interview with King World News, noted money manager Stephen Leeb, who has been arguing that Chinese demand for silver to satisfy the country’s solar energy needs will be a major factor in propelling silver to triple digits, seizes on a speech earlier this week by Chicago Fed President Charles Evans, reported as, “Fed’s Evans calls for stimulus to cut unemployment to 7.5%.”

“That to me is huge,” says Leeb, “here we have the Fed picking up the mantel and saying, ‘We’re going to do whatever it takes to get unemployment down and if that involves higher inflation, so be it, we’re going to accept it’…. What this says is that the rally in gold has just started. We haven’t had the inflation yet.  What we’ve had right now is an appetizer for what’s to come in the gold and precious metals markets. Gold is going to go much, much higher and silver is headed into triple digits, that’s just the way it is.  Gold is going to become the asset of choice in this country and right now it is not even considered to be an asset class (by the mainstream).  It will be ‘the’ asset class in the next several years.  You’re looking at things you don’t even want to think about because if you say what could happen, people look at you like you’re a lunatic.”

Related Links:

The Street/CNN:  Gold prices claw higher on EU debt disaster

Barron’s:  Gold shaves losses; Silver heading for 4% weekly fall

Bullion Vault:  Gold prices continue “white knuckle ride“

MarketWatch:  Volatility dulls gold’s shine, investors’ security

Kitco:  Survey:  Volatility to continue in gold next week

Reuters:  Analysis:  China, India inflation drive gold, not Europe woes

Mineweb:  Silver to shine as Indian expatriates boost demand

MoneyWeek:  What Switzerland’s shock currency move means for you

Trader Dan:  Swissie gold and Euro gold setting all-time highs

Project Syndicate:  Europe on the verge of a political breakdown

Reuters:  Gold demand to strengthen by end 2011: WGC

Financial Times:  Sizing up the gold market

P. Radomski:  Is this the final parabolic upswing? Comparison of two precious metals bull markets

Yahoo! Finance:  Marc Faber: Gold is “dirt cheap” — price could reach $10,000 per ounce

Citywire:  Gaddafi sold nearly $1bn of gold as rebels advanced

Washington’s Blog:  New source of diamonds and gold to flood the market … In a couple thousand years

This entry was posted on Friday, September 9th, 2011 at 10:58 pm and is filed under China, Federal Reserve, General Economy, Gold, India, Monetary Policy, Short Sellers, Silver, Wall Street. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.