Protests in 18 Nations Drive Gold and Silver Ever Higher
Source: Forbes, Robert Lenzner (4/6/11)
"Today, gold reached a new peak of $1456, silver rose to over $39 and is flirting with $40 an ounce, while the price of Brent rose to a worrisome level of over $121."
There are also protests of one kind or another taking place against 18 separate governments in the Middle East and Africa. One upshot is that OPEC's spare capacity to produce oil has been reduced by a third, according to MF Global, a commodity futures trading firm that kindly sends me their daily views on the volatile price moves of oil, gold, silver, copper and the like.
Today, gold reached a new peak of $1456, silver rose to over $39 and is flirting with $40 an ounce, while the price of Brent rose to a worrisome level of over $121, playing catch up on the precious metals and the peak last seen in July, 2008.
The share prices of gold equities Anglo Gold Ashanti, Goldcorp, American Barrick, and Freeport McMoran rose more in percentage terms than the price of bullion. This play can't go on forever, but keeps receiving its momentum from geo-political forces, from the upsetting news of violent deaths in North Africa and the Middle East. . .It is like watching old newsreels of the Second World War, and feeling powerless.
It's not exactly what I would call a "haven," a place of refuge. Holding gold and silver and oil is not a place of refuge. It's way of profiting from the lack of a haven in Libya, Yemen, Syria and the rest.