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:


Gold $1,300: A New Hope

Greg Guenthner

If it can clear this hurdle, we could see a quick rally and higher prices over the next several weeks. But if it fails, I suspect another test of $1,200 in short order, potentially sending the yellow metal to fresh lows.

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

How to Shield Yourself from the Next US Debt Crisis

Matt Insley

With the pain of the 2008 financial crisis squarely in America's rear-view mirror, consumer credit and US debt are steadily on the rise. My how quickly we forget... Today, Matt Insley explains why you should not be sleeping on the severity of the US's debt load, and how you can avoid the coming crunch. Read on...


Great News! You Can Still Cash in on the 3-D Printing Boom

Josh Grasmick

Perhaps the most astounding technology to emerge in the 21st century is that of 3-D printing. It's given humans the ability to create virtually anything out of practically nothing. But as Josh Grasmick explains, 3-D printing is just a stepping stone to the next great leap in technology: 4-D printing. Read on...


3 Market Sectors You Should Avoid at All Costs

Greg Guenthner

With so many areas of the market taking losses to start the month of August, it seems the market correction that many pundits have been hinting at may be right around the corner. Today, Greg Guenthner details three sectors that are getting hit right now, and why you'll want to get out while you still can...


How the American Dream Can Make You 14-Times Your Money

Chris Mayer

Most U.S. citizens subscribe to an idea called the American dream - working hard on a level playing field so you can "get ahead" in life. But that's not what the original "American dream" was all about. As Chris Mayer explains, that term originally referred to a completely different, yet equally important goal. Read on...


Why Too Much Data Might Actually Protect Your Privacy

Sam Volkering

The world is awash with data. All these data will shape the future, helping people make smarter decisions and act faster. But to realize this vision, there has to be a way to crunch the data. And with such a huge amount of it, that could be a problem. Luckily, there's a unique solution on the horizon. Sam Volkering explains...