Ed Steers is quite taken with Felix Zulauf as indicated from this paragraph in his email today:

Here's an interview that's just been posted over at King World News. Eric sent it to me yesterday... and I just got finished listening to it now. It's an exclusive interview with Felix Zulauf. Felix has been a member of Barron’s Roundtable for over 20 years. Investors have only read about Felix in Barron’s because he simply does not give interviews outside of Barron’s... so this one should command your undivided attention. Nothing in the interview surprises me... as I've written about all this sort of thing myself... but coming from someone of his stature, it's a shocker! If this doesn't make you go out an buy more physical metal, I don't know what will. As I said, this is must listen interview... and the link is here. It runs for about 20 minutes.

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/5/28_Felix_Zulauf.html

I listened and a few points from my notes follow...

*bullish on gold as big money investors feel they must hide their wealth in this currency. Therefore bull will continue for no. of years with price "certainly much higher than now." The driving force will be investors putting some % of their wealth in gold w/ supply side very limited given investors are not now willing to well their gold.

*Banking system will go bust within next couple of years and government unlike now will not be able to come in so that central banks will have to come in and our currencies will be destroyed. The result will be currency reform which thinks will happen within 2 - 7 years which will eliminate part of debt and at same time part of wealth. We need to get outside our credit/banking system but he was unclear/uncertain of how exactly to do this other than to own some gold, real estate possibly a farm.

* We will see the low in gov bonds within 3-12 mos which will be the end of the 30 year bull market in gov. bonds (similar to Peter's take)

* Chinese economy which is so important to commodity markets will have a cyclical recession within the next 12-18 mos. This will be quite bearish for commodities with copper/oil getting cut in half within next 12-18 mos. Rally in these commodities is now over.

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