Los Angeles CA, June 13 (Tangible Investments) - by James O’Dell - Gold and Silver bullion prices rallied on Thursday, with Gold gaining $8.30 or 0.66 percent to close at $1,273.35 an ounce on an uptick in Gold's safe-haven appeal after Al-Qaeda linked militant group ISIS overran Mosul and Tikrit in Iraq, taking the markets by surprise. The price of Silver jumped $0.34 or 1.77 percent to $19.55 an ounce, while the Gold/Silver ratio fell to 65.13.
The Iraqis have called upon the U.S. for help after their national army was reported to have stripped off their uniforms and fled in the face of the ISIS advance. The U.S. says it is looking at "all options", including military action after Iraq’s biggest oil refinery in the city of Baiji was reportedly overrun and ISIS was said to be on its way to Baghdad. ISIS regards Iraq's Shia Muslim majority as "infidels," so if ISIS were allowed to take control of the nation of Iraq, it would cause a massive destabilization in the Middle East.
Meanwhile, noted investor Eric Sprott says that Western central banks are supplying Gold bullion to Asia in an effort to suppress the price of physical Gold, and the U.S. may be rapidly running short of physical supply. Sprott says that central banks are quietly supplying Gold to China after it has been recast from LBMA-sized bars into kilogram-sized bars, the size most preferred by Asian investors. On the premise that near zero interest rates and unrestricted money printing will eventually destabilize the U.S. dollar, and since a much higher Gold price would be a tip-off that the end is near, keeping Gold prices low is a large part of U.S. financial policy, according to Sprott.
Sprott points to recent data from the U.S. Geological Survey that shows that the U.S. exported 80 tons of Gold in January. U.S. mines produced 20 tons, we imported another 20 tons, but Sprott asks where the additional 40 tons came from? He says it was most likely supplied by the U.S. Treasury. Sprott feels that ultimately, the extent of Gold market manipulation will be revealed when someone finally fails, most probably the U.S., to supply the market. And he says it's not as far off as we may think.
Preserve your wealth and secure your retirement by making a tangible investment in physical Gold and Silver in 2014. Call Toll Free 1.800.741.5014 and allow the friendly staff at Tangible Investments (learn about us here), owned and operated by world-renowned coin expert Silvano DiGenova, to assist you in your next purchase or sale. We hope you will share our site with your friends on Twitter and Facebook, but whatever you do, don't leave the site before claiming your Free Coin.