With gold and silver still consolidating, oil above $100 and stocks trying to hold on to recent gains, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management. When asked about the action in gold, Leeb responded, “There are liquidity concerns right now. I think the world, and in particular Europe, really does have a liquidity problem. If Europe has a liquidity problem that obviously has the potential to affect everybody, especially the US. When you need liquidity gold is a natural source. It’s been a tremendous performer over the past decade.”
Stephen Leeb continues:
“Entities looking for liquidity that own gold may be selling it to raise capital. But you are in a period now where you are transitioning from liquidity needs, liquidity shortages, to printing more money. Evans, the central bank chief out of Chicago, has effectively said, ‘Let’s not be stupid about this. Let’s start printing money. We can’t take a chance because the system could implode.’
