In this interview with King World News, author and economist Stephen Leeb claims some mystery buyer showed up in the gold market after the Swiss Gold Referendum was voted down. He says this is what caused the gold price to rally sharply higher instead of falling as expected. King World News does not allow anyone to copy quotes from their articles so you can read the full interview by clicking the link above. Below I will list some summary bullet points and then add a comment.
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- after the Swiss voted down the gold referendum, gold started falling in price but then suddenly reversed as some mystery buyer stepped in and bought in large amounts
-India and China continue working on an eastern alliance that is supportive of Russia
-China is attempting to gain influence with Saudi Arabia and convince them to use the yuan for oil trading
-China just took a new step to insure yuan bank accounts to increase confidence in its banking system and currency
-all this may convince Saudi Arabia to trade oil with China in yuan
-China has secretly acquired much more gold than they announce in public
-Leeb believes China was the "secret buyer" and that is why gold held up even after the Swiss voted the gold referendum down
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My added comments:
It is hard to tell from this interview how much of it is speculation, but Stephen Leeb has a solid background and reputation. Some of his points are clearly correct about China and their efforts to get the yuan more globally used for trade. And they did just announce a new program to insure yuan bank accounts.
A lot of what goes on in these geo political manuevers is going to be confidential and hard to verify. But Stephen Leeb's comments seem plausible given what we can observe and verify.
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