Leeb – Easing Policy in China to Create Boom in Commodities
KingWorldNews.com
March 20, 2012
Today acclaimed money manager Stephen Leeb told King World News a variety of factors has held back the commodity markets. Leeb also said China’s move into a policy of easing will seriously ramp up demand for key commodities, including precious metals. Leeb is Chairman & Chief Investment Officer of Leeb Capital Management. Here is what he had to say: “I can’t say gold’s overall performance has been disappointing. I expected it to be higher, but on the other hand it’s hard to be that discouraged. A better word is frustrated. Gold is definitely going to have its day, there is no doubt about it.”
“There are simply too many things working in favor of gold at this point. Gold production really hasn’t increased since 2001. That’s unheard of given the fact that during that time period gold has increased more than six fold in price. You have actually had a decline in gold production over that period as well.
If six fold increases in price can’t bring on more production, you are in trouble. With peak gold production, there is also evidence that other metals are following the same path, in particular copper and silver. There have been massive increases in price in both of these metals in the past decade, but you’ve had very little increase in production.
What we have seen is a combination of factors that has been holding things back in terms of price and they are not going to hold things back for much longer….
The Rest…HERE
