Not often do we reprint an entire article but in this instance Robert Lenzner writer of Forbes StreetTalk says it all. The one thing we found most enlightening is his reference to the Financial Times article about Middle Eastern central banks loading up on gold. It just seems everyone is looking to the safe-haven of gold. Now for your reading pleasure Robert Lenzner…
Gold bullion closed at $1438 after hitting $1442, and will rise as investors try to protect themselves in a world gone mad with chaos and blood. Silver actually hit a new 35 year peak at $37.19, and getting closer to the $40-$50 goal we set last fall.
Gold is no longer just a hedge against QE2 and inflation– or a hedge against deflation. Or a hedge against a declining dollar. Today, gold has become an expression of the instability spreading from Tunisia to Egypt to Libya to Syria, to Yemen, to Saudi Arabia, to Iran, to Bahrain– and those street dissensions to come, conceivably in Kuwait, UAE, and elsewhere. Oil supplies are threatened. Buy gold and silver.
You don’t believe? Look at a chart of gold against silver. They are moving in absolute tandem now. Any Sheikh trying to preserve his fortune must own gold and silver.
In the US the price of GLD, the largest gold ETF, hit a peak of $140 and looks set to breakthrough that mark tomorrow or the next day. Let’s see if net selling turns into net buying. Are you listening Soros and Paulson, and their camp followers?
Then, there’s the WikiPedia Impact on gold and silver. The FT reported a few days ago, via cables released by Wikipedia, that more central banks are plowing into gold, playing catch up with China, Russia and India.
Listen up!. Iran,says the Bank of England via the FT, is making “a significant move… to purchase gold. Likewise, the Qatar Investment Authority, no slouches, and Jordan’s central bank are putting reserves into gold. I must call my friend at the Bank of Israel to find out what he’s doing. I’m sure I won’t get anywhere.
Imagine; gold and silver at new peak prices. While oil is only at $106– high for sure, and going higher in fits and starts, and copper has eased recently as the Chinese reduced their purchases. A shocking development. Goldman Sachs is still bullish.