Friday, May 28, 2010

"I think silver is really at the nexus" - Stephen Leeb

The silver story will be told in the financial history books as something awesome to behold.  Like the tulip bubble, but more purposeful.  - Tate Ulsaker

Stephen Leeb - Bullish On Gold And Silver


I interviewed Stephen Leeb today, and when asked if the situation today was similar to the 70's, Stephen replied, "No, no I think this is much worse, honestly...You pick up the books that are readily available to the public and they'll tell you there are three asset classes, there is stocks, there are bonds and there is cash and you should be divided among those I don't think they mention commodities or gold as an asset class."


Leeb went on to say, "And yeah, I mean it's sort of ingrained in you that gold is something for, you know, right wing civil libertarians, and I spent most of my life with that kind of feeling. I mean I really did not like gold, and if I can just give you one statistic which is interesting... if you look at the last four decades...Gold started trading as a commodity, freely trading in I think 1971. If you look at its compounded annualized average annual return between when it started trading and today, it's about nine and a half percent per year. Well, that comes almost right in line with what the S&P 500 did, and it certainly beats cash, and it certainly beats bonds."


When asked about silver Leeb stated, "I think silver is really at the nexus of it being a precious metal and therefore something of a hedge against inflation and also being a vital metal."


The interview will be released on Saturday. Stephen discusses gold and silver at length and the fact that he expects another mania in the precious metals market and for gold to eclipse it's performance in the 70's.


Eric King

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