Gold has gotten the week off to a strong start, moving sharply higher on Monday and seeing follow-through upside on Tuesday. The metal is likely seeing renewed buying interest as the geopolitical landscape continues to warrant risk aversion.
The recent vote by Catalonia to secede from Spain is just one of several key issues that could potentially fuel risk aversion. Over the weekend, thousands of Spaniards protested the potential move, and it remains unclear if the region will in fact break away from the rest of the nation. Such a move by Catalonia could have a dramatic impact on the Spanish economy, as the region accounts for approximately 20 percent of Spain’s total economic activity.
The feud between Spain and Catalonia is another example of some of the difficulties that may be faced by the EU. Great Britain has already voted to leave the EU, and the possibility exists for other nations to do the same.
U.S./Turkey relations took a turn for the worse over the weekend as both countries have put a freeze on passports. The U.S. made the move after a consulate staffer was arrested in Istanbul recently. The Turkish Government responded by doing the same-effectively barring Americans to travel to Turkey and Turks from traveling to the U.S. with few exceptions.
And then there is the ongoing saga with North Korea. President Trump has again hinted at military action being the only legitimate option for dealing with the North, and other nations such as Great Britain have even begun drawing up plans for a possible war.
Stock markets have thus far continued to turn a blind eye to the potential powder keg, but could see a quick and vicious reversal if tensions escalate further. In fact, with every fresh, new high being made in equity markets, the potential for a larger collapse could be on the rise.
Is your portfolio ready?
Stocks have had a great run, and enormous wealth has been made in the last decade as stocks have moved higher without looking back. Bull markets are always great, until they aren’t. Much of the wealth and gains that have been had over the last several years will likely disappear in the blink of an eye. The power of greed is significant, and investors who look to ride the bull higher until the very end could be the ones who get hurt the most.
Given the current geopolitical backdrop and risks to the stock market, now more than ever may be the right time to add diversity and asset classes that may potentially insulate your holdings from a stock market collapse.
Gold, silver and other metals may potentially add diversification while also providing a meaningful hedge against a number of economic and geopolitical issues. Wouldn’t it make sense to add these asset classes before the next economic or equity market storm hits?
Buying and holding physical gold has never been easier than it is today. Speak with an Advantage Gold account executive today about the potential benefits of such investments and how they may fit into your investment strategy. An Advantage Gold account associate can even show you how to buy and hold physical gold using your IRA account.
Don’t wait for the next major economic or geopolitical shoe to drop. Explore your options for physical gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, catalonia, diplomacy, eu, gold, north korea, powder keg, relations, spain, tension, turkey