Gold and silver prices are up on the day over fears of Islamist militants recently taking over the Iraqi cities of Mosul and Tikrit, with Baghdad apparently in their sights. At the time of this posting, the militants were only 80 miles from Baghdad. Experts are amazed at the relative ease and quickness of the strikes and capture of the cities. Iraqi leadership has engaged the assistance of the United States. While we have yet to deploy troops, we are providing much needed equipment and supplies to help fend off rebel attacks.
Fear of oil fields being captured and the production of oil being affected has caused oil prices to spike over 2%. The uncertainty of the situation, coupled with rising oil prices, has caused the price of gold and silver to follow suit. The commodities commonly move in sync, so it’s not surprising that we’re seeing a move toward gold and silver as a safe harbor.
Just recently, Richard Russell, a well-known and respected financial newsletter writer, stated that once silver reaches $19.25 an ounce that we’ll see our next leg up in the price of silver. This apparently would signify that the bottom is in and that the bear market is over. As to if Russell will be correct in his prediction, it’s anyone’s guess. However, with all of the uncertainly in the Middle East, including the Syrian conflict, and considering that Central Banks worldwide appear to be debasing their currencies in hopes of stimulating growth, an investment in gold and silver at this time appears to be a wise move.