kingworldnews.com / July 3, 2012
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….