Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Inflation and the Crazy Crypto Markets - 23rd Oct 21
Easy PC Upgrades with Motherboard Combos - Overclockers UK Unboxing - MB, Memory and Ryzen 5600x CPU - 23rd Oct 21
Gold Mining Stocks Q3 2021 - 23rd Oct 21
Gold calmly continues cobbling its Handle, Miners lay in wait - 23rd Oct 21
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

EGYPT: Placebos, Protests and Gold and Silver Breakouts

Commodities / Gold and Silver 2011 Feb 18, 2011 - 03:56 PM GMT

By: Jeb_Handwerger

Commodities

Best Financial Markets Analysis ArticleWe are constantly being advised that the Egyptian Military has the situation under control. As the situation develops it is becoming increasingly apparent that there is something wrong with this picture. The military and the media assures us that the morganatic wedding between the Generals and the Masses will proceed as scheduled. As the old song goes, "its time to wind up the masquerade...the piper must be paid." Is Iran sailing through the Suez sending a message of who may be trying to gain power during this chaos?


There is a great hunger in the land. The people have access to Facebook and the faces they see increase their rage. They see Generals, unnamed and anonymous, promising to give them bread and democracy. However, they see that the truth is otherwise. They are well aware as we may not be that the Egyptian Military runs beach resorts, banks and bread factories. Their subsidiaries manufacture automobiles, televisions, furniture, washing machines and other myriad necessities. They even have the hubris to control the bottle water industry. The brand is named "SAFI" after one of the general's daughters. From this gigantic conglomeration of businesses, the generals pay no taxes, use drafted workers and buy real estate on advantageous terms. They are not responsible to report anything to the Egyptian people or to the legislature. The ouster of Mubarek was merely a placebo to attempt to cover up the fact that the generals have been the power behind the government. Their names are unknown except for the leader, Field Marshall Tantawi, who has often been referred to as "Mubarek's poodle". They have established marshall law, dissolved Parliament and cleared Tahrir Square with the carrot stick of eventually permitting democratic elections.

Still unanswered are the protestors with the release of thousand of political prisoners. Such brazen exercise of authority might be justifiably interpreted as a conflict of interest. However, the masses in Egypt as well as the rest of the middle east are growing increasingly restive.

The old games of propping up despots such as Baptista and Trujillo are in this age where internet is accessible to the men on the street and the students in the universities, is growing increasingly thin. Revolutions have never played out according to script.

In Russia, the Czar was overthrown only to be replaced by a small minority party called "The Bolsheviks". In Germany it was the "Nazis", that replaced the Weimar Republic. The Iranian revolution gave us the "Mullahs" instead of the Shah. The recent elections in Lebanon gave us the terroristic Hezbollah. What is to be the future role of the military that has for the past thirty years played a crucial behind the scenes role in preserving its own vast business interests? With Iran moving ships through the Suez the situation remains in flux. This a test of the Egyptian Military. The cards have been dealt and Egypt allowing the Iranian boats through the Suez, will show Israel the militaries hand and whose side they are truly on.

This morning the newspapers said that the military has already "begun taking steps to protect the privileges of its gated economy, discouraging changes...that are crucial if Egypt is to emerge as a stable and prosperous country. Protecting its businesses from scrutiny and accountability is a red line that the military will draw...And that means there can be no meaningful civilian oversight."

Some other disturbing headlines in today's papers are:

  1. "Battle Lines Harden Across The Mideast As Rulers Dig In"
  2. "Dozens Reported Killed In Libyan Crackdown"
  3. "Yemen Protestors Face Off For The 8th Day"
  4. "The Committee Formed To Protect Journalists Fights Attacks"
  5. "Egypt Disappearances Raise Concerns About The Military"

What does all this turmoil, restlessness and upheaval mean to us as investors? The message can not be clearer precious metals will assume a more salient role as time goes by. It is interesting to note that when tyrants depart they make sure that the gold they stole has preceded them. In Tunisia, the ousted leader Ben Ali made sure that he looted the government gold coffers before he left. In Egypt, Mubarek's son Gamal was reported to have carried off large amounts of gold. We do not have to be weathermen to determine which way the winds of change are blowing in the Middle East. Precious metals will remain a viable store of wealth and a quasi-currency, especially if these riots turn violent. Already there are reports that protestors were fired upon in Bahrain.

Silver has broken out of a six week consolidation into new highs and is currently showing incredible relative strength. This morning SLV made an ascending triple top breakout on the point and figure chart at $31. I believe we can start seeing another major leg higher and acceleration of the trend in precious metals. The physical demand is increasing in silver and it could continue its rapid rise higher since it is new high territory.

Gold is showing similar strength as it broke the 50 day moving average to the upside. Gold and miners reached oversold levels in January not seen in more than a year. Now many of the bears who sold out and expected a steeper correction will be returning pushing gold, silver and mining stocks into new high territory. This is the perfect storm for precious metal investors. Our buy signal on January 25th has proven to be a short term turning point and the break into new highs may look at that time as one of the best buying opportunities in years. To see the article I wrote in the middle of the panic, click here. Investors who did not trust the 2 year trendline, made a major mistake and sold out into the fear. Those times where fear reaches an extreme turn out to be the best opportunities.

I invite you to partake in my Free 30 day Daily Intelligence Reports on key companies in this rapidly developing sector at http://goldstocktrades.com/premium-service-trial

By Jeb Handwerger

http://goldstocktrades.com

© 2011 Copyright Jeb Handwerger- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in