Now is the Time to Buy Gold Miners

The gold price looks hot…

The smart money is waking up, as well. Punters are piling into gold. City A.M wrote yesterday:

In a recent interview with Bloomberg, Egyptian billionaire Naguib Sawiris, Egypt’s second-richest man, revealed his enormous gold trade, arguing that stock markets were overvalued and were about to slump. He predicted the price of the precious metal would rally to about $1,800 from $1,300 now, as equity markets floundered.

That’s a big call…

But history has a way of delivering big gains for gold. The yellow metal doubled in price between 2009 and 2012. And as we know, history tends to rhyme. Gold could see an even steeper rally in the future. The problems of the past haven’t gone away. In fact, they are getting worse — especially on the geopolitical front.

I’ll explain…

Missiles fired

Russian Times reported last week:

Syrian air defenses were deployed to thwart an attack by the Israeli rockets, Syria’s state SANA news agency reported. The bombing is reportedly being carried out by Israeli warplanes from Lebanese airspace.

Syrian air defenses engaged missiles that Israeli warplanes are launching from outside the country’s territory, SANA reported on Thursday. The bombardment appeared to go on for hours, with the first missile strikes reported at about 1:30 am Damascus time on Thursday (22:30 GMT).

‘Early Thursday morning, IDF spokesman Avichay Adraee confirmed that the Israeli army was continuing to hit “Iranian targets” in Syria, warning that any retaliation by Syrian forces would be met with “extreme seriousness.”

Most mainstream reporters accused Iran of striking Israel. It holds military positions along the Golan Heights. But, regardless of who’s telling the truth, the war in the Middle East is heating up.

Israel doesn’t like the Iranian presence along its Syrian border. It despises the build-up of Iran’s Islamic Revolutionary Guard Corps (IRGC) and its proxy militia, Hezbollah.

The situation is alarming…

According to Brookings, Israeli Prime Minister Netanyahu said he would use military means to remove Iran forces from the Golan Heights. That is, if a diplomatic solution can’t be worked out.

Don’t get your hopes up.

There’s no solution…

War looms

CNN wrote last week:

France fears an escalation. Iran has its finger on the trigger. But, really, it’s Russian President Vladimir Putin who sits in the hot seat.

‘Where once the US would have been the brake on spikes in Syrian violence, there is a real possibility President Donald Trump’s withdrawal from the 2015 Iran nuclear deal is greasing the wheels towards a wider regional war.

‘In recent months, the world’s top diplomat, UN Secretary-General António Guterres, has warned that Israeli and Iranian tit-for-tat strikes in Syria could quickly boil over to a regional conflagration.’

Take the situation seriously…

Iran is supporting the Assad regime. It’s unlikely to move out of Syria. It also wants to establish military infrastructure in the country. In the future, we might see Iranian airfields and naval bases in Syria.

It gets worse for Israel…

The bases will mostly be defended by Hezbollah and IRGC.

Iran wants to control a land corridor that weaves from its capital, Tehran, through Iraq to northern Syria. It will end at the Mediterranean port city of Latakia. The road seems possible. Iran has gained tremendous influence over the region over the past few decades. Iraq, Syria, Lybia, Yemen, Qatar and Russia all support its ambitions.

Saudi Arabia — the wealthiest country in the Middle East — is worried. Its main military allies, such as Israel and the US, are also against Iran’s growing influence. They brand the country a terrorist supporting nation and an enemy of the world.

I believe we will soon see a major war in the Middle East.

US President Donald Trump’s inner circle is anti-Iran. It pulled out of the nuclear deal last week. Russia continues to sit back and watch, mind you. For now, its strategic positions remain unharmed in Syria. But at the end of the day, there’s a feeling that someone’s going to overstep the line. That probably won’t be good for much, other than gold.

The bottom line: It’s time to buy gold stocks before a war kicks off. For more details on what to buy, check out Gold & Commodities Stock Trader.

Regards,

Jason Stevenson,
Resources Analyst, Markets & Money


Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:


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