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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