LOS ANGELES, June 5, 2017 /PRNewswire/ -- Times of conflict historically trend in the advantage of precious metals, and 2017 America has waded deep into those times.
The Trump administration is taking a strong defense against threats to national security, and the threat of a North Korean missile could be the biggest precious metals opportunity in decades. In the past month, increased tensions between the U.S. and North Korea have begun the process of spooking the markets, and gold has already seen a $50 increase.
"We don't have to look far these days to find conflict and uncertainty. It's at our very doorstep," said Jonathan Rose, President and CEO of Capital Gold Group. "As news headlines continue to jar people into today's reality, it's important to safeguard against the unknown and that's exactly what gold provides."
Over the past three weeks, North Korea has fired off three missiles, ignoring global pleas to stop. Since the start of the year, the dictatorship has fired a total of 12 missiles over the course of nine tests. These dangerous displays have prompted China, Japan, South Korea, and the U.S. to work diplomatically side-by-side in urging North Korea to change their course of action. However, the combined nations' efforts have all been blatantly ignored, prompting the Pentagon to respond to the threats this week with its own military display.
On Wednesday, the Pentagon successfully test-fired a weapon specifically designed to shoot down inter-continental ballistic missiles.
"This test demonstrates that we have a capable, credible deterrent against a very real threat," said Vice Adm. Jim Syring, director of the Missile Defense Agency, in a statement.
Additionally, earlier this month, the US Air Force sent a clear message to North Korea by flying two B-1 bombers back and forth past the Korea Peninsula near the North and South Korean borders. Two B-1 bombers flew over this region in late April as well, continuing to flex US military capabilities in the region, as North Korean tensions rise.
During periods of armed conflict, the demand for gold as a safe haven asset historically increases. International intervention threatens the value of the dollar, and without fault reminds investors of their love for the yellow metal as a durable, internationally-recognized currency, which cannot be printed or otherwise manipulated.
In the week following the September 11 attacks on the United States, for example, over $1.4 trillion was lost in the stock market, and the demand for gold for safety and protection boomed. Spot gold stood at $285 per ounce on September 11, 2001 and closed on September 11, 2001 at over $1,820 per ounce.
About Capital Gold Group Inc.
Capital Gold Group Inc. is a global leader in GOLD IRA retirement accounts and physical delivery metals. CEO Jonathan Rose is an international registered financial consultant with a Series 3 commodity license. Mr. Rose has lectured in London, Singapore, Hong Kong, Malaysia and at the Financial Advisor Symposium in America on the benefits of Precious Metals for portfolio diversification.
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SOURCE Capital Gold Group