The Threat of War and Gold

Two weeks ago, the United States launched a bombing attack on a Syrian government airbase as retaliation for that country’s use of the nerve gas sarin against its own people. President Trump found Syrian President Bashar al-Assad’s use of sarin especially heinous because of the excruciating physical damage it inflicted on many of Syria’s children.Threat of War and Gold
Twenty years ago, the stockpiling and production of sarin was banned by the Chemical Weapons Convention of 1993 and classified as a Schedule 1 substance. Persuaded of sarin’s horrific effects, the UN Special Commission on Iraqis disarmament had destroyed the nerve gas, citing Security Council resolution 687 (1991) regarding the disposal of Iraq’s weapons of mass destruction.
In response to Mr. Trump’s military action, North Korea leader Kim Jong-un put forth a bellicose threat to the United States in which he boasted of his country’s long-range-nuclear-missile capability. And Russian Prime Minister Dmitry Medvedev, according to Reuters weighed in with his own aggressive public statement, declaring that the U.S. strikes “were one step away from clashing with Russia’s military.” There you have it – the threat, or, at least, the prospect of war.
The United States is certainly no stranger to this kind of brinksmanship. In recent years, Presidents Clinton, George W. Bush, and Barack Obama have all found their administrations embroiled, willy-nilly, in military actions – Clinton in the former Yugoslavia, and GWB and Obama in Iraq and Afghanistan, among others.
Granted, the prospect of war can be depressing, especially in a nuclear age. But that doesn’t mean investors should panic at every threat of war each time they read a news account or listen to a news broadcast. Brinksmanship or sheer barking across a border or an ocean is one thing. A true threat – one that could elicit a military response from a threatened nation – is an entirely different proposition.
A more sensible response by investors to the possibility of war is to accumulate gold as a safe haven for their retirement accounts. It is no coincidence that the price of gold has been higher during the recent geopolitical events involving Syria, North Korea, Russia, and the United States.
A war prompts a nation to spend money to finance that war. When a nation runs out of money to pay for war, it will print money. The printing of money for war, in turn, leads to the debasement of a nation’s currency – much as it did in the post-World War I era when Germany’s economy was sucked into hyperinflation.
So rather than panic at the threat of war, use the threat as a signal to accumulate more gold, or to start your gold-purchasing program if you haven’t done so already. It’s one time when bucking a financial trend makes sense, and adds value to your portfolio.
Request more information now or call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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