Sunday , 16 June 2024

"Hope for the Best, but Invest Expecting the Worst" in 2012 – Here's Why & Where

When it comes to both the socio-economic and geopolitical circumstances in the world today, don’t forget…[to] invest accordingly. [Let me explain why and which assets could benefit and be hurt by such events.] Words: 528

So says Marc Courtenay ( in edited excerpts from his original article*.
Lorimer Wilson, editor of (A site for sore eyes and inquisitive minds) and (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The report’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Courtenay goes on to say, in part:

Crude Oil

Jim Rickards, [who] has gained international recognition for his remarkably accurate predictions regarding the decision by central banks and international power-brokers,[believes] that the U.S. is headed to war with Iran…[and] if Rickards is correct in his assessment, the near-future price of oil could possibly double in the course of just a few days. All it would take would be for the Strait of Hormuz, the world’s most important oil export route, to be blocked off and oil prices will soar!

Look closely at the map below. It doesn’t leave much to the imagination. A war with Iran leaves this strategic strait vulnerable to blockades and aggression.

If the price of oil leaped 50% or 100%, the stock market may take a huge “time out” and temporarily plunge. At the same time, oil companies that produce mainly outside of the region shown in the map above may see their share prices move dramatically higher…

Base Metals, Fertilizers and Strategic Minerals

War and massive disruptions of basic materials could ignite commodity prices. Such commodities as base metals, fertilizers and strategic minerals would figuratively go “through the roof”…

Gold and Silver

We know that during times of increased economic turmoil and dramatic international uncertainty that gold, and to a lesser extent silver, turns into a safe haven. That may be one reason that speculative investor-legend George Soros revealed that he’s been loading up on gold…[telling] an audience in Bangalore, India recently that… “The crisis in Europe is more serious than the crash of 2008.” He apparently believes the world faces the possibility of a “vicious circle (cycle)” of deflation…[which] will send the central bankers running for the money-making machines…

John Hathaway…expects a “terrific short squeeze” in gold and gold mining shares, as gold’s fundamentals are strong and improving, even as sentiment in the gold sector has entered “the dry-heave stage”…[As such,] I believe that, “just in case”, we should at least have exposure to the gold metal and mining sectors by owning the two ETFs, The Market Vectors Gold Miners (GDX) and the SPDR Gold Trust (GLD)…[as well as] The Central Fund of Canada (CEF) when the shares are not selling for a high premium. CEF owns both physical gold and silver plus they insure their holdings and carefully store it.


For 2012 “hope for the best, but plan for the worst”.


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