With gold and silver consolidating recent gains, today King World News interviewed acclaimed money manager Stephen Leeb, Chairman & Chief Investment Officer of Leeb Capital Management. Leeb brought up the fact that we are seeing shortages in silver and, importantly, that gold production is declining. Here is what Leeb had to say: “What people don’t realize about silver is how illiquid silver is, and how little physical silver that is available in the market. Now you have the Canadian, (Eric) Sprott, who has really been spot on for more than a decade, Sprott has just raised money and needs to take delivery of another 10 million ounces of silver. My question is, from whom? That’s the question.”
“Who is he going to buy it from? The Chinese, who need it for solar? It’s not around. 10 million ounces doesn’t sound like such a big number, but when you have such illiquid markets, it is a big number. In reality, it’s a very big number, especially when you already have shortages. People are already hoarding silver. The Chinese are also hoarding silver.
"When you have a situation like that, you haven’t seen anything yet in the way of a bull market in silver. There’s no way of saying how high silver is going to go, but this is going to become an exceptionally scarce commodity."
[Fascinating. Click over to see what he has to say about gold.]