Tuesday, June 11, 2013

Here Comes The Next Major Leg Of Gold Demand In China

"With continued volatility in key global markets, today acclaimed money manager Stephen Leeb spoke with King World News about important developments in the gold and silver markets.  Leeb also said the Chinese are setting up for the next major leg of gold demand in their country.  Below is what Leeb had to say in his interview.
 
Leeb:  “I think the biggest news longer-term for gold and silver investors is China’s recent approval of two ETF products.  This is yet another sign that China is very intent on accumulating as much gold as they possibly can.
 
You have to view this in conjunction with the fact that gold is down, but you also have to understand that when the market turns, the turn will be dramatic.  At the same time, I don’t think there is any downside in gold.  But what is very interesting to me, and typical of the Chinese, is that they waited until they knew there was very little downside in gold and silver to start their two ETF’s....
“Once they have satisfied their demand for gold the Chinese will come out and say, ‘We have a currency that is backed by gold.’  But the whole world is going to become more dependent on gold as a currency.  That’s the way it’s going to be.  This is the way things are unfolding right now.

After all of this money printing in the West, we are not getting any traction in the economy.  The Chinese are watching us and thinking, ‘The West needs a sensible policy.’  One of the sensible policies we will have to do with energy..."
 

 

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