Changing Geopolitical Dynamics
Recently, it was reported that China was still sending shipments of crude oil to North Korea. Although this may not be confirmed as of yet, it does underscore the potential for increasing geopolitical issues in the months and years ahead. Currently, economic sanctions against North Korea are designed to cut off about 90 percent of the nation’s oil supply.
Needless to say, choking off access to energy can cripple a country’s economy, although it remains unclear if the measures will be enough to deter the nation from its ongoing pursuit of nuclear weapons. If China is not enforcing the sanctions that have been imposed, it could potentially create a major rift with the U.S. and possibly other nations as well.
This is yet another example of some of the major geopolitical challenges that are currently being seen, and things could continue to change as the Trump administration looks to implement its foreign policy agenda.
Although North Korean nuclear ambitions remain at or near the top of the list, there are numerous other geopolitical issues that could potentially have an impact on global financial markets. European troubles, strained relations with Russia and the Middle East are among some of the major issues that may flare up in the months and years ahead.
All of these issues are also coming at a time when the U.S. Dollar is under siege. The dollar has been declining further in recent trade, and could continue its descent from current levels. It’s no secret that numerous nations have been moving away from the dollar, and it remains unclear how much longer the greenback will remain the reserve currency of choice.
One thing is for sure, however. Significant changes could potentially be seen in the global balance of power and influence, and the dollar could become weaker and weaker. While a weaker dollar may be good for an exploding deficit and paying down debt, it may not be such a great thing for your finances.
Among other things, a weaker dollar can:
- Reduce purchasing power
- Make the price of everyday goods and services relatively more expensive
- Eat away at real returns
- Lower disposable income
- Make imports more expensive
As the global economy and geopolitical landscape evolves, it is imperative to include asset classes within your portfolio that can potentially provide a hedge against a weaker paper currency. What asset class can potentially play such an important role for your portfolio?
The answer is physical GOLD.
Gold has been considered a reliable store of wealth and value for thousands of years now, and its reputation has been earned. Unlike paper currencies, it cannot be created out of thin air and cannot simply be debased. It has inherent value, and is recognized as a medium of exchange anywhere on the globe.
Gold may potentially hold its value-or even increase in value-as fiat currencies decline. If you don’t already have this key asset class as part of your portfolio, now is the time to consider an allocation.
Adding physical gold to your holdings has never been easier than it is today. Speak with an Advantage Gold account executive today about the numerous reasons to buy and hold real, physical gold. Our account executives are here to educate you and answer any questions you may have, and can even show you how simple it is to diversify your portfolio using your IRA account.
Don’t wait for a weaker dollar or the next major stock market collapse before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.
Tags: advantage gold, china, crude oil, dollar, gold, north korea, sanctions, trump administration