July 24, 2012
Today Stephen Leeb told King World News, “… there is a controlled desperation in China when it comes to acquiring gold.” Leeb, who is Chairman of Leeb Capital Management, also said, “They are acquiring as much as they possibly can without tilting the markets dramatically to the upside.”
The acclaimed money manager also stated, “China mined a total of 355 tons, which was by far the largest amount of gold mined for any country. And yet they are still buying every single available ounce they can get in the open market.” Leeb was also quick to point out the strength gold is displaying, “Today we have global stock markets under significant pressure, the US dollar breaking out on the upside, and yet gold is holding firm.”
Here is what Leeb had to say about what is happening with Europe, the Chinese and gold: “Europe is a mess and sooner or later the Europeans are going to have to come to grips with the dire situation they face. Yesterday, Moody’s put the three AAA countries on credit watch, Germany, Luxembourg, and the Netherlands.”
Stephen Leeb continues:
“Unless the European bank is willing to print money in order to start buying the debt of the failing countries, you are going to have a catastrophe. The patchwork schemes they have been using are not going to get the job done. Right now, Eric, as we look at the European crisis, it’s worse now than it has ever been.
5-Year Spanish bond yields are now trading at 7.6%. That’s an extraordinary number, and it really says Spain cannot finance anything….