Oil Fears Drive Up Gold & Silver

An Iranian soldier watches as smoke billows from multiple burning oil refineries in Abadan, Iran. © Henri Bureau/Sygma/Corbis

Libya is in the midst of a Civil-war, fortunately, only the production of oil has declined in Libya – so far! Gadhafi in a speech today called the oil fields safe and secure as his forces bombed eastern Libya.

Should the Civil-war escalate further the 9th largest reserves in oil may cease to produce. As we saw in Kuwait & Iraq, the potential to have the oil fields left a burning rubble is real & dramatically raises the price of oil. Libyan oil fields destruction will further increase pressure on the prices of gold & silver.

This is one of the major influences on gold & silver, as they both climb to higher prices.  Inflation & the Federal Reserves monetary policy should also continue to drive these prices. Should the west intervene in Libya all three of these will seek higher levels. Read more: Gold, Silver, Oil Will Spike To New Highs If US-UK Attack Libya

 

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