Are All your Questions About $2,000 Gold And $100 Silver Answered?

Oct. 29, 2011 - PRLog -- The chairman and chief investment officer of Leeb Capital Management, Stephen Leeb, is a big fan of silver. In a recent interview, he explained why he thinks the Silver Price is heading for triple digits, like over $100 per ounce.

He thinks there are two crucial fundamentals. One, silver’s a monetary metal, although not as widely recognized as a monetary metal as gold right now. But it definitely has a history of being a monetary metal. Individuals will price it for that. You have a race to the bottom in terms of all the current reserve currencies, like the Euro and also the Dollar. The action in gold is certainly evidence of that. The fact that silver’s price is holding in the upper 30s is pretty good. There’s a lot of downside protection in silver because of its monetary component. Go to http://silver-dollar-values.com for profitable investing ideas.

On the industrial side, silver is vital. Silver has properties that cannot be duplicated on many levels. It's the best thermo-conductor of something that is discovered. It conducts heat better than anything else. It conducts electricity better than copper or something else. And, it’s one of the best reflectors. Is it really surprising then that silver is a vital component on most solar applications?

China right now is spending about $1 trillion a year on alternative energies. China controls the solar industry. They have at least 50 percent market share. They’ve been underbidding, undercutting everyone in the development and acquisition of polysilicon. Following which comes silver. In order to build these solar panels, you need silver.

You have a possible, utter squeeze coming on silver, a monetary metal with vital industrial applications. Silver’s trading about $39 and hasn’t even come down 10 percent since the marketplace started sliding. It is an excellent hedge in deflation. You are going to have demand for silver coming from two places, which I do not believe you’re going to have the ability to satisfy, given that silver production today is rising at a lot slower rate than it was in 2010, despite the reality that silver prices are greater. That dictates dramatically greater prices for silver.

Do some analysts believe the solar element is something that is being overlooked in terms of the demand? China will start buying silver a lot more aggressively and start accumulating it. There’s very little doubt in my mind that China will probably be accumulating massive amounts of silver. Go to http://silver-dollar-values.net for profitable investing ideas.

For silver to achieve three digits in price, would it be a slow, steady march, or something that would rocket up? There has been no event that has triggered the big jump in Gold Prices, other than the gradual realization that you will find no reserve currencies in the globe which are worth a darn. Exactly the same realization will maintain silver in a strong, long-term uptrend. I think individuals are going to be very surprised, very surprised, when it just goes past $50.

Do you think that that would occur independent of gold? It'll be independent of gold. I think all commodities are going to have to go a lot greater. I just don’t think there are enough commodities out there to build out renewal or alternative energies. I don’t believe China realizes it. I mean, you’ve got peak price coal; you’ve got peak oil, peak everything. Silver, even without the monetary component, would make it into three digits.

Some analysts appear to have a bullish sense of growth, global growth as well? I wouldn’t say I am bullish on global growth. I’m bullish on Chinese growth. China’s a wicked enemy of ours. They’re monopolizing resources. They’ll continue to complete that because I think they’re looking out for their very own. It’s hard to have a totally bullish outlook on growth when you’re looking at resource scarcities which are going to affect China as well. Go to http://www.silver-dollar-values.com for profitable investing ideas.

Do most analysts believe that gold and silver are in the same asset class? I do not believe they’ve ever been in exactly the same asset class. There’s not a big industrial use for gold. It’s become ever more recognized as a possible reserve currency. Silver does have industrial utilizes. It’s industrial vs. non-industrial. They’re completely different classes. But silver overlaps. In a diagram, you would have silver in each set: the industrial set as well as the monetary set.

What fundamentals of silver do analysts worry about? What would change your opinion? I believe a lot of it has to complete with China. What would change my opinion? If we found other ways of creating solar energy that did not involve silver - and I don’t see any on the horizon - that certainly would merit reconsideration. If China collapsed, then the calculus surrounding the globe completely changes, which includes silver, but not just silver.

How should a retail investor method silver as an investment? My recommendation would be to method precious metals as an asset class in and of itself. As an asset class, you attempt and diversify within the class. There are the commodities themselves, which you are able to purchase through an ETF or you can buy through coins. You will find lots of methods of participating.

What would you recommend for an asset allocation in precious metals? It makes sense to weight it a minimum of on exactly the same level as you would weight stocks. Whatever your highest allocation is, precious metals ought to be greater than that allocation. Today is a wonderful time to purchase gold and buy silver while the prices are nonetheless fairly inexpensive and supplies are still available.

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