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Robert Lenzner

Robert Lenzner

Posted: March 24, 2011 03:27 PM

Gold, Silver Prices Hit New Peaks on Political Unrest


Gold bullion closed at $1438 Wednesday 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. Nor is it 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 WikiLeaks impact on gold and silver. The FT reported a few days ago, via cables released by WikiLeaks, 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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