The turmoil in Egypt is getting worse by the hour, as shots are fired in Tahir square, and the death toll rises. A civil war seems to be brewing as supporters of Mubarak are now coming out in response to the governments opposition.
In spite of this, it seems that precious metals have not been effected as much as most would of thought.
During the initial outbreak, precious metals prices spiked as expected. As time passed costs came back down and analysts came in to determine the global effects on precious metals prices for all possible resolutions to the Egyptian uprising. Apparently the experts do not think the effect is significant made evident by prices in gold and silver during the recent crisis.
Now that the mood is spreading throughout the middle east, it creates another mindset.
Gold has broke $1,350 again, silver said hello to $29, platinum climbed above $1,840 and palladium passed $820 as Yemen, Jordan, Saudi, and others are pulled in to the unrest in Egypt. Protests are breaking out in what seems to be every corner of the middle east by the people demanding change.
Some are saying that 2011 could be the year of the “Middle East Revolution”. If this holds true and the situation does not get resolved rather quickly, you WILL see more investors flying to gold as a safe haven.
The metals were correcting, and could have possibly corrected lower if it were not for the wild card coming out of Egypt. They then appeared to have been consolidating during the last 48 hours and now seem primed for the next leg up.
We may have well seen the lows for precious metals in 2011, and could be on the way to new highs by the second quarter.