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Will this new war on the Islamic State ever affect the price of gold?
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<p>[QUOTE="NorthKorea, post: 1989948, member: 29643"]It's about confidence in dollars/yen/euro/yuan/pounds/etc. If the event doesn't bring into question the strength of a major currency, it likely won't impact the price of PMs. Wars or events that result in supply disruptions would also lead to high PM prices. World wars tended to cause run ups in base metal prices, rather than PM prices, as more steel/copper/etc would be needed to supply them. With drones and a greater reliance on computers, an arms race *might* lead to a run up in platinum group and rare earth group metals, but it's unlikely to impact the price of gold until alternatives used in components become too costly. It might have a marginal impact on silver once excess supply is exhausted, but that would take a while, since we have about two years of standard consumption held in investment form.[/QUOTE]</p><p><br /></p>
[QUOTE="NorthKorea, post: 1989948, member: 29643"]It's about confidence in dollars/yen/euro/yuan/pounds/etc. If the event doesn't bring into question the strength of a major currency, it likely won't impact the price of PMs. Wars or events that result in supply disruptions would also lead to high PM prices. World wars tended to cause run ups in base metal prices, rather than PM prices, as more steel/copper/etc would be needed to supply them. With drones and a greater reliance on computers, an arms race *might* lead to a run up in platinum group and rare earth group metals, but it's unlikely to impact the price of gold until alternatives used in components become too costly. It might have a marginal impact on silver once excess supply is exhausted, but that would take a while, since we have about two years of standard consumption held in investment form.[/QUOTE]
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