Gold and Oil Provide Safe Haven Multipolarity

Gold & Silver Daily

Oct 09, 2023

∙ Paid

If you already own bonds and dollars to hedge instability, you must now buy oil and gold to hedge your hedge.

Good Morning:

Market Comment: Markets are performing as you would think given a middle east crisis with one exception. Oil does not pop like this for conflicts in Israel historically, even bad ones. The key drivers of Oil prices initially in ME conflict are: the proximity to oil production, and who the participants are. A conflict in Gaza with Israel involved is normally a non starter for oil, even a big one. Oil is quite remarkable in pricing war risk historically.

Sunday night, Oil opened strong and did not fade. Everyone will have a rationalization.. Here are the most likely ones you will be seeing soon.

If Hezbollah gets involved, then Israel and Iran are fighting = oil risk
Oil is discounting a longer term conflict that may escalate
Oil is looking at a weakened perception of US decisiveness given its recent pullout of Afghanistan and other events this year that adds instability in the ME.

It may be any one or all three of the above. It may be something else. Oil may be a sale. Whatever it is, there is a geopolitical change surrounding Oil and Gold.

They are now assets to own as hedges against *all* global instability alongside US bonds and dollars… We are now a multipolar Safe Haven world.

If you are worried about problems anywhere in the world, not just the ME, you buy Oil and Gold to hedge your US Bond and dollar exposure.

If you already own bonds and dollars you buy oil and gold to hedge your hedge

Cheers