Fund Managers Buying Gold With Their Own Money

Leeb:  “We have the US dollar down over 1% today and gold has reacted by moving firmly above the $1,400 level.  Silver is also moving higher.  I think the question now is how fast are the metals going to advance?  That will depend on a number of things, but one thing is certain and that is the selling is over.

Gold is going to be the single most important currency in the world going forward.  That’s the way it is headed.  One of the catalysts which may ignite the gold price would be if things erupt in the Middle-East.  If we move aggressively into Syria then you are talking about Russia, the US, Iran, etc…

Who knows what would happen in that environment?  Oil could become very scarce in a very short period of time.  But the bottom line for investors is the only way they can protect themselves and emerge from all of the coming chaos over the next several years, and with enough capital to secure a decent way of life, is through gold.

As I continue to speak with fund managers, more and more of them are telling me they are buying physical gold, not GLD.  These people are taking their own money, buying gold and literally storing it themselves or in a private vault outside of the banking system.  This is with their own personal money.  What does that tell you?

I have never been one to distrust government, but more and more I am getting to that point.  When you look at what’s happening in this country, many things are in the interest of powerful corporations and not in the interest of the country itself.

The more this country heads down the wrong path, the stronger the argument is in favor of gold.  We are not talking here about a company or companies or a price to earnings ratio.  We are talking about people’s security going forward, and these are issues that transcend the normal dialogue of financial markets.  You’ve got to own gold and you’ve got to own silver.  That’s just the way it is.”

Leeb also added:  “I’m a big believer that resources across the board are getting scarce.  Available physical gold is certainly getting scarce.  Look at these mining costs.  Look at Barrick Gold.  There is a reason that all of these gold stocks are struggling right now.

All in costs may be over $1,200 so many of these companies can’t make money.  This is why the price of gold has to go higher from here.  But does anybody think what is happening with gold costs is not happening with all of these other commodity costs?

Every vital commodity is becoming more and more expensive.  But gold has very special properties.  It’s beautiful for a reason because it doesn’t oxidize, it’s malleable, etc.  But gold is used more in jewelry, investment, and as a currency than it is used in industry.  That makes it very special and a true store of value.

As the world continues its money printing binge there will be a race at some point to acquire physical gold and it is already in tight supply.  That is why the world will witness an explosion in the price of gold and the same thing can be said about silver.  Silver will be trading in the hundreds of dollars and gold will easily eclipse $10,000.”