At the time of publication, gold and silver prices were reported higher for the day amid fears that Islamist militants had recently captured the Iraqi cities of Mosul and Tikrit and appeared to be advancing toward Baghdad. The original article stated that the militants were then only 80 miles from Baghdad. It said observers were surprised by the speed and relative ease of the attacks and city captures. Iraqi leadership had sought assistance from the United States. The article reported that U.S. troops had not yet been deployed, but that equipment and supplies were being provided to help resist rebel attacks.
The article attributed an oil-price jump of more than 2% to concern that oil fields could be captured and production disrupted. It said uncertainty surrounding the conflict, combined with higher oil prices, had also pushed gold and silver higher. Because those commodities often move together, the article considered the movement toward gold and silver as a safe harbor unsurprising at the time of publication.
The original article noted that Richard Russell, a recognized financial-newsletter writer, had recently said that once silver reaches $19.25 an ounce, the next upward leg in silver prices would begin. It explained that this would supposedly confirm a market bottom and the end of the bear market. Whether Russell’s prediction would prove correct, the article acknowledged, was uncertain. Still, given the Middle East uncertainty then described, including the Syrian conflict, and its view that central banks worldwide appeared to debase currencies to encourage growth, the article characterized gold and silver investment at that time as wise.
