Silver To Eclispe $100 On Skyrocketing Chinese Demand

With gold and silver rebounding today, acclaimed money manager Stephen Leeb told King World News that silver is now setting up to eclipse $100. “Silver under $30 is a joke,” Leeb said. Leeb believes that China, which has been the primary driver in the gold market, is now going to push silver over $100 as their consumption of silver is poised to skyrocket. Here is what Leeb had to say in this powerful, exclusive interview: “Yesterday headlines were saying there is massive demand for photovoltaics in Japan and China. There is also massive demand for silver in the Middle-East for this type of energy infrastructure.”

“King World News was way ahead of the curve on this because I have been discussing photovoltaics here for quite some time and this is just now starting to hit the mainstream media a little bit. But another circumstance that is of great concern in the Middle-East is the water tables have really crashed. They can’t effectively drill for water anymore.

So in the Middle-East they are going to have to go for desalinization of the ocean and guess what that takes? That takes a lot of silver for photovoltaics energy infrastructure....

“Yes, the Middle-East still has a lot of oil, but they have to export that oil in order to maintain their budgets. This leaves the Middle-East as a major user of solar energy going forward.

You are going to continue to see the use of solar energy accelerate in the future as places like the Middle-East and Asia face greater energy needs. These countries are now focusing as much on solar energy as they are on wind energy.

The implications here are just extraordinary. Photovoltaics already accounts for about 5% or 6% of all of the silver that is mined in the world. We will see that grow at 30% or more for the next five years. There is simply not enough silver in the world to accommodate photovoltaics. When you add to that the industrial and investment demand for silver, you know silver is setting up to break $100. Silver under $30 is a joke. It really is a joke.”

Leeb also added: “China is encouraging the international use of its currency. The end game here, and what is really the beginning of the next bull move in gold, is going to come from two inflection points: One is the massive flow of gold from West to East. The other is this move by China toward energy independence.

After the Chinese have accumulated enough gold to back the yuan and they have moved toward energy independence, that is when the dynamic of this world is going to change. That is when you are going to see the value of US dollar destroyed.

But if there were ever a group of assets that were undervalued it would be these high quality junior gold and silver mines. Many of these stocks which were $15 to $18, are now trading around $4. Well, as gold just heads back to $1,900, these stocks could easily go to those old highs. I’m not even talking about gold breaking to new all-time highs, just getting back to $1,900.

We are just looking for a change in sentiment right now, and that negative sentiment in gold is waiting to change. It’s just a question of when, not whether. The only question is, are these quality stocks going to go up 5, 10, or 20 times in price? They will be heading at least 5 times higher, but they could ultimately move 20 or 30 times higher in price. The bottom line is as the bull market in gold accelerates going forward, fortunes will be made in these quality mining companies.”