As any seasoned investor knows, precious metals are often used as a hedge against political unrest, and economic instability worldwide. We've all seen how protests in Libya and Egypt have boosted the value of metals, as well as many other hard asset investments. With signals of protest and rebellion peaking over the horizon in Saudi Arabia, we could very well see a jump in the price of metals in the near future if the situation in Saudi Arabia escalates. An article from the Sydney Morning Herald describes the situation:
One witness said police fired stun grenades to disperse the crowd of around 200 people from the Shi'ite minority. Another witness and a Shi'ite activist said shots were fired.The big red-flag in this situation is the fact that Saudi authorities show "a willingness to use force early". In the past few weeks, we've seen both Egypt and Libya under an enormous amount of scrutiny for the forceful actions they've taken against local protesters, and it's certainly plausible that Saudi Arabia might be next in line. If so, look out for a huge boost in any hard asset investment.
"There was firing, it was sporadic," the witness said. It was not immediately clear whether rubber bullets or live ammunition were fired. Witnesses and activists said up to four people were wounded.
Activists in Saudi Arabia have made unprecedented calls for mass protests against the kingdom's absolute monarchy. Protests are forbidden as being against Islam and it was not clear whether people would take to the streets en masse on Friday.
"By showing a willingness to use force early, the Saudi authorities are likely hoping they will be able to deter people from joining the protests, but such actions could just as easily embolden the protesters," the political risk consultancy Statfor said.
No comments:
Post a Comment