Buy gold; believes a “ten-fold increase” is coming; New Book Release Details – The Published Reporter®
NEW YORK, NY – Chat in person with Stephen Leeb, the revered authority on the stock market and gold, or read the latest of his nine bestselling books, The Rise of China and the New Golden Age (STEEP), is an equally informative experience. Or I discerned from the start and throughout the 60-minute interview I conducted with him (according to the Covid-19 health safety instructions) in my office last week.
“Over the past two decades, gold has been the best investment, far surpassing stocks and bonds… Over the period 2000-2019, gold has outperformed the S&P by 200 percentage points and bonds by 250 percentage points. And this year alone, since the market peak in January, gold has consistently outperformed the S&P 500 ”, Leeb noted, repeating three of the many interesting facts I had already learned from reading his lucid, informative, both humorous and perhaps (time will tell us) premonitory volume of 259 pages.
However, just as he laments in the book, Leeb who – in addition to his success as an author has become a sought-after and frequent guest on most the best news and business networks, acts as an advisor to several large companies and is the publisher of his own award-winning publication, The complete investor – argued that major investment firms and financial advisers recklessly diverted their clients from the gold market and instead directed them to conventional markets.
“Rather than recommending gold, leading investment firms and investment advisers have persuaded their clients over the past 20 years to build their portfolios around a relatively safe, diverse mix of stocks and bonds, in what the industry calls the “construction process”. Leeb said.
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While recognizing the reliability of common variables, finance professionals generally take into consideration when planning their client’s personal portfolio, which, Leeb said, includes the willingness and ability of the investor to take risks, the age group and economic situation of his nuclear family and the need (or lack of need) healthy retirement income, Leeb argued that such factors argue for rather than against investing in gold.
“Adjusting the allocations between stocks and bonds to an individual’s unique personal financial situation is a standard and correct strategy. But this strategy as I write [in CRAG], makes gold – a proven profitable, safe and reliable asset – a perfect fit in the diversified holdings of virtually any investor, ”said Leeb.
Leeb further argued that China’s economic might, the rise in the value of commodities in Asia, and the global Covid-19 pandemic have dramatically increased the speculative value of gold.
Speaking first of China’s economic powerhouse, Leeb said, “As I write [in China’s Rise and the New Age of Gold: How Investors Can Profit from a Changing World], China’s financial planning has worked so well over the past 20 years that it now has the world’s largest economy and has grown into the world’s largest international trader. China also has the largest amount of gold reserves in the world, and as I predict it will eventually be used to save a new reserve currency. When this happens, the value of gold will skyrocket.
Leeb then explained how the Asian commodities market has served to increase the value of gold. Explaining that the 49 countries of Asia can be divided into developed countries which include India, Japan, South Korea and China itself and underdeveloped countries which include Cambodia, Laos, Vietnam and Indonesia, Leeb continued, “The economies of the developed and underdeveloped countries of Asia, which incidentally contain 60% of the world’s population, are developing by leaps and bounds.”
“As a result,” Leeb added, “they are consuming increasing amounts of commodities such as coal, gas and oil to fuel these growing economies. It is easy to see how this affects the price of gold. : It is a long-accepted economic rule that the higher the price of all other commodities, the higher the price of gold will be.
Finally, Leeb discussed the impact Covid-19 has had on both the global economy and the value of gold, while noting that the crisis only started after submitting the original transcript. to its editor, Mc Graw Hill, back in February 2020. “Covid-19 hit the world in early March, shortly after sending the manuscript to the publisher”, he remembers. “So I decided that the best way to go was to add my analysis of how the pandemic might impact the world and its impact on the price of gold was to add it to the preface. … My conclusion, as you will see there, is that the pandemic, for a variety of reasons, will prove to be a major contributing factor to the future gold bull market. ”
Leeb – whose correct predictions of the past include the resurgence of the bull market in the 1980s, the collapse of the dot-com bubble in the early 2000s, and the rise of China as a financial powerhouse in the 2010s – devotes the major part of the first 19 of 23 chapters detailing and analyzing in more detail the effects that world events, international currency fluctuations, market forces and economic trends will have on what he predicts as the future meteoric rise in the value of gold.
However, these were the last four chapters of the book, containing a guide on how to navigate the gold-buying process, which Leeb surmised his readers might find most important of all.
“I expected readers motivated by the book to consider investing in gold would find it essential to learn the ins and outs and dos and don’ts involved in buying gold. gold for the first time, ”Leeb said. “This is exactly what we do in the last four chapters, which provide practical, research-oriented advice on how to get started and, possibly, benefit greatly from investing in the gold market. ”
As readers of my column will recall, I interviewed Leeb over the phone at the end of April last year for a column that appeared on these pages about a week later. In the column titled Stephen Leeb: Renowned Financial Authority Talks About Stock Market, Gold, and Current Coronavirus Financial Crisis, I quoted Leeb as follows: “Gold over the next generation has the potential to reach many times its present value due to the need for a critical world safeguard for all international currencies.”
There is short-term data that indicates Leeb’s prediction that day was correct: May 11e, 2020 just 2 days after my column was printed, gold closed at 1697.2 an ounce; and, November 13e just over seven months to the day, gold closed at 1889.2, an incredible increase of around 10%.
Yet in CRAG, Leeb makes an even bolder prediction than the one he made last spring, which he repeated to me without hesitation: “As I detail in the book, due to many factors, the price of gold will, in a single generation, drop from its current range of just under $ 2,000 per ounce to $ 20,000 per ounce. ounce, that is to say a multiplication by ten “, Leeb prognosis.
This is a prognosis that financial firms and investment advisers might be urged to carefully weigh when planning for their clients’ financial futures.