Why Gold Is Going To $20,000 & Silver Into The Stratosphere

With gold and silver surging strongly on Bernanke’s Congressional testimony, today acclaimed money manager Stephen Leeb explained to King World News why gold is headed to $20,000 and silver into the stratosphere.  Here is what Leeb had to say:

“There is no question that Bernanke pulled the rug out from under the gold bears today.  Their argument has been that the Fed is starting to turn a little bit more hawkish.  We had some propaganda coming out which indicated the Fed was going to end QE at some point this year.”

“All of the sudden Ben Bernanke is in front of Congress today basically saying, ‘Hey, wait a minute, this (QE) thing is working.  Risks of deflation have gone down dramatically, and we don’t see any major risk of getting out of these bonds.’  Well, give me a break. 

The Fed is going to continue with its easy money policy for as long as the eye can see.  This is important when looking at the recent action in gold....

“90% to 95% of the smash in gold was related to the propaganda coming out of the Fed that they would end QE, and that is complete nonsense.  It’s just not going to happen no matter how much disinformation and propaganda comes out of the Fed.

But Bernanke is also trying to say, ‘We have a plan for getting rid of it (QE).’  Well, I’d love to have a dollar for every politician that’s said they have a plan.  There is no plan.  Who is going to buy $3 trillion worth of US debt?  There is an old saying, ‘You can always get out if you want to.  The question is, what’s the price?’  The price in this case will most likely be 20% interest rates and inflation that goes through the roof.  The Fed can fool some of the investors some of the time, but not all of them all of the time.

I think the gold market is waking up to this.  There is no plan for getting out of this.  There can’t be a plan for getting out of this.  The reality is the Fed is getting deeper and deeper into trouble here.  So the Fed will continue doing what it’s doing, and that’s a recipe for some sort of Armageddon, meaning some sort of point where the Fed ultimately can’t sell their bonds.  At that point we will see massive inflation.  I hate to say it, but that’s where we are headed.Finish reading...