by Jan Skoyles, GoldCore:
- North Korea threatens to reduce the U.S. to ‘ashes and darkness’
- Markets becoming used to ongoing provocations from North Korea
- Russia and China continue to support watered down versions of sanctions on Kim’s regime
- Both NATO and Russia running war games on one another’s borders
- Putin says Russia will “give a suitable response” to NATOs threatening behaviour
- Gold set to climb as fears over economy and war will drive safe haven demand
This year North Korea has launched a dozen missiles. With the latest one it has threatened the U.S. with ‘ashes and darkness’ as Kim believes it ‘should be beaten to death like a rabid dog.’
Russia and China continue to support watered down sanctions on the isolated country. Both have made it clear that they will not tolerate a war on their borders.
War talk is not just about North Korea anymore. NATO and Russia have been or are currently carrying out war games on one another’s borders. Both parties feel the other one has acted unreasonably in doing so. U.K. Defense Secretary Michael Fallon has accused Russia of deliberately provoking NATO, whilst Putin has said Russia has no other choice than to “give a suitable response to all of these actions,”
Russia has previously used military exercises as a cover for what has ultimately been invasions and war. See Georgia in 2008 and Ukraine in 2014 for the most recent examples.
Saber rattling is quickly looking like its going to become full-blown sword fighting at least somewhere in the world.
But few seem to be worried. Markets are not only apparently fatigued by the war cries of the world’s nuclear powers but are evidently ignoring the risks in the financial system.
Gold is currently up over 15% for the year, silver by nearly 12%. Both offer financial safe havens during times of war. All parties involved in the current geopolitical fracas are big holders of gold. Two of them, Russia and China are enabling the trade of the precious metal for key commodities.
Markets would be wise to look at how our great leaders are behaving before deciding that there is little to currently see on the global stage.