-- Posted Monday, 11 August 2008 | Digg This Article
| Source: GoldSeek.com
By: Peter Cooper, Arabian Money
With one per cent of the world’s oil supply flowing through Georgia which is now at war with neighbouring Russia it should be obvious enough that the recent dip in oil and precious metal prices is over, and that a new rally has started. Anybody buying gold or silver bullion or stocks today will make a fortune over the next few months.
This correspondent was caught out by this particular crisis. I had half suspected Israel might attack Iran, although with the Olympics going on that was unlikely. In the event Russian tanks have rolled into Georgia, apparently provoked but the timing on the day the Olympic Games started is too much of a coincidence to be unplanned.
Remember what happened after the Russian invasion of Afghanistan in 1979, its last great military adventure? This destabilized the whole region and we saw oil prices spike to $38 and gold to $850 in 1980.
Strange really that oil prices are so much higher, while gold is only marginally higher in price than in 1980 – 28 years ago. But spot the buying opportunity after last week’s chronically mistimed sell-off in commodities – or was this somebody who knew about the coming war pushing prices lower to make a killing, so to speak?
We do not know where the conflict in Georgia will lead. It could all be over quickly but this problem has been rumbling on for years and I doubt the resolution will be that easy.
If Russian might does enjoy an easy victory then that will encourage the hawks in Israel to strike Iran – perhaps before a less hawkish US president takes office next year. Geopolitics are back, big time and investors should sit up and take note, this is indeed a buying note for oil and precious metals.
Whatever happens I am sure that lows in oil and precious metals markets have been set for this year, and that from hereon the only way is up. The junior exploration stocks could rise ten-fold in many cases from their unnaturally bombed out August lows.
Most people will miss this glaring investment opportunity but why be among them?
-- Posted Monday, 11 August 2008 | Digg This Article | Source: GoldSeek.com
