History has proven that a country that declares war first tends to win the war. Those that declare and lose are all famous. So what is the mind set of the state when a declaration of war is made? They are looking out for their own self interest which means..!? They are acting Rational. As a state grows in wealth, power and influence the more rational decisions they are able to make. In this case an intriguing event has emerged, the oil for gold trade.
Where do we go from here?
What is the biggest bull headline for gold? Most likely something to do with a "gold standard."
What intriguing trends are we starting to see world wide? Accumulation outside of the West.
Why? Because gold is pure confidence to do business.
The cost of production and the diminishing supply of gold in the world are two tail winds that are only picking up momentum.. It is only a matter of time before the West cracks and old $ flows back into the precious metals.
So with quite possibly the biggest storm precious metals has ever seen brewing, as fiat wealth only increases later "panic" tailwind, Iran becomes more rational by the day as their long term REAL wealth grows. Maybe the US can afford to play the game out a little longer, maybe big $ cracks and flows start up again. Only time will tell.