With all that is going on in the world right now, the word “explode” may be a poor choice. The North Korean saber-rattling has continued, with the nation testing another intercontinental ballistic missile just days ago.
This provocative action by the North Korean regime did not go unnoticed, and the U.S. along with Japan and South Korea responded with a show of force. This ongoing situation could be reaching a critical juncture, and it remains unclear how the U.S. and its allies will respond to any further increase in tensions.
Although it is certainly not too late for diplomacy, such measures have thus far been ineffective. Further economic sanctions could be considered at this point, and hopefully the conflict can be resolved peacefully without the use of military force.
As if the North Korean situation is not enough, Russia is now planning on expelling a significant amount of diplomats in retaliation for U.S. sanctions against the country. Although this may not carry the degree of danger that the current North Korean situation does, it is something to keep an eye on and is just another negative in a world filled with geopolitical issues.
The North Korean situation is enough to keep investors interested in gold, and the yellow metal has cleared some key technical hurdles and remains on the offensive. This comes at a time when the CBOE’s VIX is near all-time lows as stocks continue to grind higher. At some point, the gates are going to open and the stock selling will begin. It could be today, tomorrow, next week or next month. Once the gates open, look out below. Some analysts are already suggesting the possibility of a major decline that could make the financial crises of 2008/2009 seem like a walk in the park.
Gold could be setting up for a significant move higher and a major stock market sell-off could be the next fuse. The lack of market volatility that has existed for some time now is not likely to go on indefinitely, and a major spike higher in volatility could send gold and other perceived safe haven assets to the moon, and in a hurry.
Now may be the ideal time to consider added portfolio diversification using physical gold. The yellow metal could be gearing up for a multi-year bull run, as the aging stock market is beginning to show signs of weakness. Low interest rates, geopolitics and a weaker dollar could all potentially keep gold moving higher. Stocks, on the other hand, are seemingly lacking any reason to move beyond what many already consider to be overstretched valuations.
Don’t wait for gold prices to take off without you or for the stock market to crumble once again. Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our associates are here to answer any questions you may have, and can even show you how easy it is to add real, physical gold to your holdings using your IRA account. Call Advantage Gold at 1-800-341-8584 to get started.Tags: advantage gold, diplomacy, gold, north korea, russia, sanctions, vix, volatility