Today acclaimed money manager Stephen Leeb told King World News that we are headed into massive inflation and a major spike in the gold price. Leeb, who is Chairman of Leeb Capital Management, also said that “Fortunes will be made by savvy investors in this sector.” Leeb stated, “We saw a mania in the gold shares at the end of the 70s and we are going to see one again this time around.”
Here is what Leeb had to say: “The economy is going to get worse. The price of resources has jumped over time and that has acted as a huge tax on consumers. But we are going to see another huge uptick in inflation going forward. This time the rise in prices will not be stopped by the Federal Reserve.”
“In fact, the inflation may even be fostered by the Fed. Brent crude is trading over $112 again, and gas at the pump is already rising. Bernanke today, I’m quoting a headline, ‘Bernanke says economic data may mask suffering of individuals.’ I agree with that, but I’m still surprised to hear a Fed Chairman saying that.