West vs. East- Leeb Discusses the Gold Story

Leeb:  “The developed world remains desperate to keep gold down as long as they possibly can, and to keep silver down as well.  Gold is a threat to the developed world.  Of course you don’t sell 400 tons of (paper) gold for no reason, in an asinine fashion.

You don’t watch your COMEX inventories draw down.  There are so many signs of desperation….

“The West is getting more and more desperate.  I hate to say it, but I think we are fighting a losing battle.  Gold is going to end up in the East, in China, Vietnam, and Singapore, and gold is going to be somewhere between $5,000 to $10,000.

And the press has done such a good job in downplaying gold and talking people out of it.  When you see things like this, Eric, it’s desperation.  If there is anything that convinces me that gold and silver are going to go so much higher, it’s the kind of desperation you see on the part of the West to keep these metals down.  To keep people from actually realizing that gold is actually a currency.

From the BIS, to Warren Buffett, to bankers everywhere, they want the dollar to stay the reserve currency.  It won’t.  It can’t.  Not in an economy that is decaying at the rate we are decaying.

So my message to people that own gold and silver, I would continue to buy it.  I would have a plan where you buy more each month.  A 400 ton sale of gold is an act of utter desperation.  Be prepared for an absolute explosion (in price).  It’s a question of when, not whether.”

Leeb also added:  “The most important (government) number you can verify is median real income.  The average 50th percentile household in this country (the US), how is that household doing?  Well, I’ll tell you how that household is doing.

Since the beginning of this century that household, in real (median income) terms, is down about 10%.  The greatest fall since the Industrial Revolution began in terms of real median incomes.  That’s a number that probably exceeds the fall in real incomes that we saw during the depression.  All of these (types of) things puts the US in a box, and it’s going to make people less willing to accept the dollar.

In the meantime, every time you see a big drop in gold, the people smart enough to buy it are the people you want to bet on.  In this case, those people are the Chinese.”