Storied money manager Stephen Leeb says China is acquiring as much gold as it possibly can in a spate of 'controlled desperation.'
In an interview with King World News, Stephen Leeb says of the Chinese that 'they are acquiring as much (gold) as they possibly can without tilting the markets dramatically to the upside.'
Leeb goes on to impute gold's buoyancy to Chinese buying amidst Europe's ongoing debt woes:
The Chinese will continue to step in and buy and this is the primary reason gold has remained so strong during this European upheaval. You have to remember that the stock market is down in China and it is likely to remain down until you see a shift in leadership.
According to Leeb, the Chinese government will continue to prop up the price of gold in order to placate the country's expanding pool of middle class investors, who have few other investment options at present aside from a soft domestic stock market and overpriced real estate market.
China has encouraged its citizenry to buy gold. With the stock market already frustrating people in China, the Chinese, interestingly, will not want gold to be added to that list of frustrations for their investing public.