Gold, Silver Higher on Global Unrest

Robert Lenzner of Forbes StreetTalk

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, Silver Prices Break Out As Political Unrest Spreads

Mar. 23 2011 – 7:27 pm | 4,283 views | 0 recommendations
By 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.

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