Jason Farrell

Gold demand is rising again… this time, to the beat of war drums. Gold futures finished 2% higher last week, surging nearer to bull market territory as charted by the Comex. Investor jitters over an apparently imminent U.S. strike against Syria are running again for safety in an uncertain world.

We could have sworn we were told by the high priests of finance that the gold bull market was over last April. Gold fell all the way to the $1,100 range, and the gold bugs were officially declared legally insane for hanging on. It’s now clawed its way back to the $1,410 range… and the bombs aren’t even dropping yet. Imagine what will happen if Iran makes good on its promise to strike Israel in response…

Legendary investor and Daily Reckoning contributor Jim Rogers spoke recently to Tara Joseph of Reuters, noting that gold will go “much higher” due to market panic over Syria and the “end of free money.”

Says Rogers:

“I own oil, I own gold, I own things like that, and if there is going to be a war, and it sounds like America is desperate to have a war, they’re gonna go much, much higher. Stocks are gonna go down, some of the markets that I’m short are already going down, commodities are gonna go up. I mean, yeah, some of the things I own all make a lot of money. I’m not particularly keen on war, I assure you, but it sounds like they want it.”

Rogers is expecting panic to ensue from tapering as well. “When this artificial sea of liquidity ends, we’re gonna see panic in a lot of markets, including in the U.S., including in West developed markets… this is the first time in recorded history that all major central banks have been flooding the market with artificial money printing at the same time. They’ve all been trying to debase their currencies at the same time.”

The lesson here for investors: If you think gold is over with, you have evidently forgotten about politics. No matter how bad it looks, someone in Washington will end up making gold investors wealthy again.

Jason Farrell

For The Daily Reckoning

P.S. Check out our chart reader Greg Guenthner’s three predictions for market fallout in Syria. Subscribe to The Daily Reckoning email edition and get the inside scoop. Click here.

You May Also Like:


Defense is the New Offense

Greg Guenthner

Sticking with the big consumer names has paid off in a big way for many investors so far this year.

Jason Farrell

Jason M. Farrell is a writer based in Washington D.C. and Baltimore, MD. Before joining Agora Financial in 2012 he was a research fellow at the Center for Competitive Politics, where his work was cited by the New York Post, Albany Times Union and the New York State Senate. He has been published at United Liberty, The Federalist, The Daily Caller and LewRockwell.com among many other blogs and news sites.

Recent Articles

Extra!
How YOU Can Help Pass the Swiss Gold Referendum

Grant Williams

For those who doubt the effectiveness of the Swiss Gold Initiative, Grant Williams has a few startling charts to show you. Today, he relays just how popular this movement is, and how you can actually weigh-in on the subject... no matter where in the world you call home. Read on...


How Small Cap Stocks Saved the Market

Greg Guenthner

For most of the year, no one wanted small cap stocks in their portfolios. But over the last three weeks, few sectors of the market have performed better than small caps. Greg Guenthner explains how to use this to your advantage... and what to expect for the rest of 2014. Read on...


Why a Strong Dollar is the Mortal Enemy of Gold and Oil

Frank Holmes

Gold and oil are down because the US dollar is up, despite all the inflationary pressures the Fed has put on it. What's going on? Today, Frank Holmes, breaks down the U.S. economy’s current direction with several important charts. Plus, he's got a mining play for you that's prospering despite the current sentiment...


Bill Bonner
Confessions of a Newsletter Man

Bill Bonner

Being a financial newsletter writer certainly has a few advantages. Namely, it affords one the opportunity to comment on the financial markets without having to take them seriously. Today, Bill Bonner looks back on what drew him to this business, and the unique and entertaining cast of characters he's met along the way. Read on...


R.I.P. Tapir (5/22/13 – 10/29/14)

Greg Kadajski

The Tapir, beloved pig-like mammal and financial machination, quietly passed away at 2:00 p.m. EST on October 29, 2014. He lived a misunderstood life and was held responsible for many things entirely out of his control. Nevertheless, he will be missed by all who thought they knew him...


Extra!
The Most Important Factor of the Swiss Gold Initiative

Grant Williams

The Swiss Gold Initiative has the the Swiss National Bank in a panic. Should the referendum pass, the SNB will be responsible for ensuring that 20% of its total assets are held in gold. That's an awful lot of yellow metal. Today, Grant Williams puts that number into perspective and explains how it could affect the gold market...