Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

SELLING OUT OF PRECIOUS METALS AND BUYING BITCOIN…. Very Bad Idea
By: Steve St. Angelo

The Bitcoin Bubble Explained in 4 Charts
By: Jake Weber

VXX Sends an Awesome Message from Another Galaxy
By: Rick Ackerman

Asian Metals Market Update: November-22-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain With Stocks
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 21 2017
By: Ira Epstein

Bitcoin, Bail Ins And Bullion
By: Mike Maloney

Tactics For The Gold Bull Era
By: Stewart Thomson

Dow Peaking? The Quick Guide to Diversifying Your Stock Profits
By: Jeff Clark

What History Says for Gold Stocks in 2018-2019
By: Jordan Roy-Byrne CMT, MFTA

 
Search

GoldSeek Web

 
Why gold will be the unexpected winner in the Ukraine catastrophe


 -- Published: Sunday, 27 April 2014 | Print  | Disqus 

By Peter Cooper

The catastrophe for financial markets now unfolding in the Ukraine will have a very positive upside for gold. If Russia invades eastern Ukraine this week what price will gold be by next weekend? $1,350? $1,400? Or much higher?

Only on Friday did the penny begin to drop on Wall Street in the final hours of trading. If the Russians have been orchestrating this crisis right from the start, what is their end-game? Are the 40,000 troops massing as close as a kilometre to the border just there for window dressing? Why do things keep getting worse on the ground in Ukraine?

Phased escalation

Over the weekend so far we have seen further violent clashes between the Ukrainian forces and the Russian-led separatist groups. One of these groups has taken 13 international observers hostage of whom one apparently urgently requires medical attention. Who is giving the orders to these groups? Think a little bit.

What is happening is an escalation that will require a Russian military intervention to ’save’ the situation. Conveniently the forces just happen to be standing by. Another pathetic round of Western sanctions next week will be ignored. But round three of the sanctions will be more significant, particularly from the US side which believes it has less to lose than the Europeans.

Stock markets will fall and bond prices rise as this series of events unfolds. The US dollar will weaken and the yen and Swiss franc gain. That will add to the pressure on Western leaders to stand aside and let Russia deal with problems in its own backyard, nevermind the inconvenient truth that they are of its own making. However, the response will not be entirely without teeth and that invites a Russian response.

Russian response

Will Russia decide to dump its US treasuries? Do they have a more sophisticated response if the US blocks them out of global financial markets? Who knows. It is called uncertainty and fear, the two things that financial markets dislike most.

In such a climate precious metals can be the only winner in a flight to a safe haven without a counter-party and the dollar out of favour. But there has been a huge dislocation in the gold market over the past year with the massive sell-off in gold ETFs and the transportation of that gold to China. When those sellers want that gold back it won’t be there and so the price will go up.

Russia has also been a big buyer of gold in recent years. You could almost think that somebody knew something that we didn’t know. Gold has become tremendously oversold recently and will come bouncing back as other financial markets tank.

If you reckon that is wrong then you are saying stocks will advance to new all-time highs in the most serious geopolitical clash since the end of communism. Can you really be right? Look how gold went up when stocks went down in January.

http://www.arabianmoney.net/


| Digg This Article
 -- Published: Sunday, 27 April 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.