What did the Benazir Bhutto assassination and the latest Israeli attacks in Gaza have in common?
There was a strong move higher on gold immediately preceding both incidents, which were spaced one year apart, to the day.
Remember how gold moved before Bhutto was killed?
Check out this Bloomberg piece from yesterday (a day before the Israeli attack):Gold prices rose the most in a week as mounting tensions in the Middle East and South Asia boosted the appeal of the precious metal as a haven.
Palestinian militants yesterday launched their biggest rocket attack on southern Israel in at least six months after a truce expired Dec. 19. Pakistani troops are being diverted from tribal areas near Afghanistan to the border with India, the Associated Press reported. Gold gained 4 percent this week.
“The only possible explanation for gold’s gains are the geopolitical tension in Gaza and in India and Pakistan,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois.
Gold futures for February delivery climbed $23.20, or 2.7 percent, to $871.20 an ounce on the Comex division of the New York Mercantile Exchange, the biggest gain for a most-active contract since Dec. 17. The metal is up 6.4 percent this month.
Yes, this is a Coincidence, but you might want to see, They Made a Killing: The Use of Knowledge of Covert Operations in the Stock Market, anyway, to see how this has worked in the past. Obviously, the Gaza attack isn’t a covert operation, but the point is the same...
Obviously they showed him the door because he was too crude, saying in public what the rest only said in private, but Rummy's chummies are still investing in terrorism futures, a niche of the Market that's still as profitable as ever.