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Online Investors News
Volume M 9-8, July 12th, 2004
a free supplement of
The Growth Stock Report www.jameswinston.com
Terror Fears Spike Gold
Bill Ridley
July 12, 2004
Three years ago we got back into gold due to the obvious fundamentals
showing the dollar would be deteriorating in value. However I
never expected in my wildest imagination, the bizarre and unfortunate
turn of events which most recently have given gold a boost.
Helicopter gun ships over New York?
While looking over Friday morning's paper I was surprised to
see a picture of a coast guard gun ship flying by Staten Island
with the headline: U.S. braces for al-Qaeda Attack.
Tom Ridge, the homeland security chief, said the government is
stepping up security based on credible reports that al-Qaeda
is planning some sort of terrorist activity before the U.S. presidential
election.
Though no specific details were forthcoming from Ridge, he did
say that given the pre-election terror attack in Spain earlier
this year and recent arrests in England, Jordan, and Italy, he
felt it "very important" to let Americans know what
is happening behind the scenes.
One intelligence official commented that plans for a terror attack
are believed to be near completion.
Ridge's comments certainly didn't do the dollar any favors which
a week earlier got significantly hammered upon the news from
the U.S. Labor Department showing less than half of the expected
250,000 new jobs were created in June, totaling just 112,000.
While the fundamental news was positive for gold, the mass media
in the U.S. didn't connect the dots to another headline story
which came out at the same time in Cairo which no doubt was more
responsible for gold's surge of far as Europeans are concerned:
Get out of Iraq or else.
The same group who claimed responsibility for the deadly train
bombings in Spain that killed 190 people gave a stark warning
to European countries they have only until the end of this week
to withdraw troops from Iraq or face the consequences.
The statement run by the Asharq al-Awsat newspaper referred to
a 90 day ceasefire for attacks in Europe that the leader of al-Qaeda,
Osama bin Laden, declared on April 15th.
"To the European people: Only a few days remain for you
to accept the truce offered by bin Laden. Otherwise you will
have nobody but yourself to blame," a London-based paper
quoted.
The paper said it had received a statement from the "Brigade
of Abu Hafs al-Masri (al-Qaeda)," the same terrorist group
that claimed responsibility for the deadly train bombing in Spain
on March 11th.
On Friday gold hit a new 3 month high of $406.50.
Let's hope and pray that these threats pass without consequence.
It should be noted by gold investors that the recent moves in
gold are largely more due to gold's attraction as a safe
haven insurance policy against turmoil and anarchy.
So over the coming weeks - if the media stories on terror subside
- we may see a pullback in gold while the insurance money leaves
and we get back to the basic fundamental facts that the dollar
is being eroded by Greenspan's mismanagement - that's enough
terror for me thank you.
July 12, 2004
Bill Ridley
Contact
Website: Online Investors
News
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321gold Inc
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