



By Dominique de Kevelioc de Bailleul – Beacon Equity Research

If the first year of the Iraq War of 2003 offers up some clues to the potential move in the silver price following an invasion of its neighbor Iran, then grab as much of the white metal as you can and enjoy the ride. This ride could be for the record books. Sign-up for my 100% FREE Alerts

On the officially day of the US invasion of Iraq on Mar. 20, 2003, silver traded at the lowly price of approximately $4.35. On the first anniversary of the invasion, the silver price reached nearly $8.00, for a 83 percent return (see graph, below).

But an attack on Iran could make an 83 percent return seem miniscule.

Backing up for a moment, however, an obviously important question, first, should be: how likely is an imminent attack on Iran?

With reports of American troop movements into Israel, along with Reuters reports of two US aircraft carriers headed to the Persian Gulf and a lot of chatter from Washington command appearing on television as salesmen for an attack, a military strike on Iran is likely, according to Jim Rickards, adviser to government personnel on US national security issues and frequent guest of King World News.

“ Eric, this really could not be more serious,” Rickards told Eric King’s KWN . “The fact that we, meaning the United States, are on a path to a war with Iran is very clear at this point. It does seem the countdown has begun and it’s coming to a head sooner rather than later.”

And following Iran’s announcement that it will no longer accept US dollars for Iranian oil, the US, really, must respond (1) . If not, OPEC gets the green light to dump the dollar and it’s game over for the US without a shot being fired.

Consider, too, recent data from the Fed which show clearly that foreigners aren’t buying enough Treasuries to even remotely match the increase to the central bank’s balance sheet. In fact, according to the chart, below, a war with Iran is a most likely stab at coaxing global money back into preventing a waterfall in the dollar after bond vigilantes are done with Europe.

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