What Will Send Gold Much Higher [SPDR Gold Trust (ETF), Barrick Gold Corporation (USA), iShares Gold Trust(ETF)]

For example, Pulitzer-prize winning investigative journalist Seymour Hersh, whose blockbusters include breaking the story of the My Lai massacre in Vietnam and the Abu Ghraib prison story in Iraq, reports this week that Turkey was behind the sarin gas attack in Syria last year, an attack that almost drew the U.S. into a larger war.

I talked with Hersh about that briefly this week and about Ukraine. He, too, believes that the confrontation with Russia remains extremely precarious.

If corroborated, his story about Turkey, a U.S. NATO ally, attempting to induce the U.S. to fight a war on its behalf, forces a similar question about events in Ukraine. U.S. officials, according to the Wall Street Journal, fear that “Russian President Vladimir Putin may be trying to create a pretext for additional military action by covertly fueling unrest in eastern Ukraine.”

By the same token, there are forces in Ukraine that would like to draw the U.S. in deeper. Are the Ukrainian nationalists, who would like their U.S. sponsors to be their military guarantors, above creating their own pretext for U.S. entry, their own false flag event? Clearly they are capable of anything. Former Ukrainian Prime Minister Yulia Timoshenko — who has just announced she will run for president — has apparently been caught on tape urging the nuclear annihilation of the 8 million Russians who live in Ukraine.

She admits the call was real, but says her remarks have been altered.

Despite most of the media having moved on to new and fresh stories, like who will succeed David Letterman, the Ukraine situation has yet to play out.

As it does, it can propel gold much higher.

Even in the best case, if in the face of real or fabricated provocations, level heads can prevail (not likely; the Ukraine bailout and sanctions passed the House by a landslide, 399 to 19; it passed in the Senate 98 to 2), and if a lid can be kept on a hot war, another consequence of crisis will be felt in the gold market.

The sanctions regime put in place against Russia is crystalizing a new Moscow-Teheran-Beijing axis. Like the trillions of dollars the Fed has already created, it does not depend on tomorrow’s data.

It, too, is a fait accompli.

And it, too, spells far higher gold prices.

charles-goyetteThis article is brought to you courtesy of Charles Goyette

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