Post-correction upside for gold and silver is immense: Leeb

Famed money manager Stephen Leeb says the upside for both gold and silver after the price correction is immense.

In an interview with King World News Leeb says that the dismal condition of the Eurozone has worsened as vividly demonstrated by recent riots and protests in Spain.

According to Leeb Spain is in a dire state, with the country "on the verge of splintering" and "many adults and children…starving."

The austerity measures advocated by more fiscally prudent members of the European Union such as Germany, the Netherlands and Finland will only serve to exacerbate Spain's woes and "be even more punitive to the people."

Leeb believes inflationary measures to deal with the debt crisis are inevitable and will buoy precious metal prices:

The bottom line is we are going to inflate the world out of this debt crisis. All of these central banks stand ready to create more money. So I expect this pull back in gold to be short-lived. Draghi is pushing so hard for money printing because he doesn’t want to see the Europe descend into utter turmoil. That’s why gold will stay strong.

Could gold go down to $1,700? Maybe, but even if it does, I don’t think it will go much lower than that. We’re talking about being 6% off the highs at that point, and that’s a shallow pull back. But once gold gets past this reaction, the upside is enormous and the same is true for silver.

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