Cevatt, that's not. This is a serious situation that is clearly escalating, but it won't come to conflict in the end I'm sure. Putin knows Obama isn't as hard as he is, but neither of them are suicidal maniacs, so it's just a question of what Putin thinks he can get away with and how far Obama and EU leaders ramp up the rhetoric in response. Kruschev put Crimea under Ukrainian jurisdiction in 1954 when it was all the USSR so a bit like if Canberra gave Tasmania to Victoria, not a terribly good idea, but still part of the Commonwealth. Putin's probably resigned to losing influence over the new pro-EU Ukrainian govt, and they in turn can probably live without Crimea, which is Putin's endgame - I think a political solution will be found relatively soon ie within months with Crimea back under Russian control and Ukraine moving on peacefully without it.
So I do see POG temporarily reacting to this situation, but not over dramatically, maybe enough to break the $1353 resistance a little faster than otherwise, but it's going there anyway on the back of the global economic situation and this is a better reason to buy goldies. Given all this, goldies are BUYS IMO. If rhetoric becomes brinksmanship and military conflict becomes a real threat, then POG could jump to $1450 overnight or $1600 in the event of an actual military incident between East and west. If so, then I will be selling goldies in my portfolio as I don't believe the effect will be long lasting and as Nathan Rothschild said "buy on the sound of cannons, sell on the sound of trumpets"
NCM Price at posting:
$11.34 Sentiment: Buy Disclosure: Held
