A Scary Place

The ongoing escalation in tensions between the U.S. and North Korea could unfortunately be headed to a new level. According to a report by the Washington Post, North Korea has produced a miniaturized nuclear warhead that can fit into its missiles.

The newest development in the ongoing saga brought harsh rhetoric from U.S. President Donald Trump who stated that “North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen. He has been very threatening…and as I said they will be met with fire, fury and frankly power, the likes of which this world has never seen before.”

These latest developments and comments from Trump would seemingly represent a new level of aggression between the two nations, and the threat of a nuclear war is likely at the highest level since the dark days of the Cold War.

It remains unclear if North Korea does in fact have the capability to deliver a nuclear warhead to the U.S. mainland, however, all indications seem to be pointing to this somber fact.

A recent vote to tighten sanctions against North Korea may take time to achieve its full effects, and given the rapid escalation in tensions the notion of other action (military or not) will likely be strongly considered.

The North Korean threat has thus far not had a major impact on global financial markets. Perhaps people prefer keeping their head in the sand regarding such issues (and who can blame them) but any type of military action may garner wider attention and send ripples through global financial markets.

Such a scenario could potentially cause a massive panic and sell-off in stocks and risk assets while perceived safe haven assets such as gold could see significant capital inflows. If the risks of war rise further, the price of gold could skyrocket as equities and other risk assets tumble. Unfortunately for unaware investors, the potential declines in stocks could be swift and severe, wiping out billions in shareholder value. Although we all hope for a peaceful resolution to the current situation, it also make sense to attempt to insulate one’s portfolio from this and other geopolitical risks that can have a dramatic impact on portfolio value.

Although we do not believe such a situation is the only current reason to be buying and holding physical gold, it is certainly a compelling one. Given the current geopolitical landscape and risks to the global economy, now may be the ideal time to consider added portfolio diversification with hard assets like physical gold.

Adding gold to your holdings has never been more convenient than it is today. Speak with an Advantage Gold account executive today to discuss the potential benefits of physical gold ownership. Our account executives are here to answer any questions you may have, and can even show you how to buy and hold real, physical gold using your IRA account.

Don’t wait for a major stock market collapse or rising market volatility before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.

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