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With gold up about $25 and oil trading almost $4 higher, today
King World News interviewed one of the wealthiest and most street-smart pros in
the business, Rick Rule. He warned that we are seeing dislocations in many
financial markets. Rule, who is now part of Sprott Asset Management, also had
this to say when asked about what is happening in Iran and how it is impacting
markets: “I think that may be driving the gold price as well. You have a
situation where the United Nations approves stronger sanctions against Iran, and
apparently the sanctions that were already in place were already starting to
bite.
”
Rick Rule continues:
“The Iranians have responded by announcing they had
tested a surface missile which was capable of hitting Israel, and they regarded
new sanctions against Iran as a security threat. There was also legislation
moved in the Iranian Parliament that would call on the Iranian Navy to respond
to sanctions by closing the Straits of Hormuz.
It remains to be seen if the Iranians have either the
will or the capability to close the Straits, but I think the immediacy of the
Iranian situation certainly played on energy and gold markets...."
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