Monday 30th January 2006AD

"DUSTING OFF THE DESKS FOR 2006"

As we dusted off and re-opened the research desks for 2006, we were faced with a pile of e-mail and voice messages, generally asking similar questions; "to what do you attribute the sudden 25% increase in gold and silver?", "how long will the trend continue?", "what is your outlook for 2006?" and "what are the critical issues facing us this coming year?"

As the month of January has quietly demonstrated, 2006 will be one of the most critically important years in living history, if not several centuries. But why? It is our view that, worldwide, we find ourselves in the midst of  several complex and interrelated, economic and geo-political minefields.

On the phone to our associate in Beirut this morning, he made the chilling and poignant comment "Philip, in all my years of studying, observing and living in the Middle East, there has never been a time more complex and dangerous than right now, it is completely without precedence."

Selling Oil for Euros? In March 2006 Iran proposes to open its Euro based oil trading exchange. Asking payment in Euros for oil is not a new concept. Between 1998 and 2001, Saddam Hussein spoke about, attempted to gain support for, and even-outright demanded payment for Iraqi oil in Euros and, as we know, on March 20th 2003, US tanks rolled across the deserts of Iraq.

Will the Iranian Oil Bourse get off the ground, and if so, how will it change the already strained and unstable Middle East balances of power? What about the coming battle of the currency  titans, and how will that effect the tender relationship between the 'King of Money'(gold) and the 'King of Commodities'(oil)?

In 2006 we are facing volatile currency fluctuations, the Middle East tinderbox, the most indebted generation in history, and further tightening in the supply of energy and other vital commodities. As Individuals - our job is to equip ourselves with the knowledge that will help us survive and prosper in our changing world. This year at Daily Dig it will be our task to tackle all the relevant questions that will provide you, our valued readers, with this knowledge.

Best Regards - Philip Judge pjudge@anglofareast.com