The leader of North Korea died a few days ago. Unfortunately, while we don’t know much about what’s going on behind the borders of the insane country of North Korea, we do know that his son was supposedly supposed to take up the “crown” of sorts. Unfortunately, he’s more insane than even his dad.
This has triggered plenty of fears. If North Korea attacks South Korea, we could have the set up for massive turmoil and possibly the detonation of a nuclear bomb. While China will probably not side with North Korea, a “doomsday” scenario could at least theoretically pit them against the United States in such an event. I don’t believe a world war will occur because of this, but it’s still an incredibly concerning possibility.
What’s Going to Happen Next?
Essentially three things are possible because of the death of Kim Jong Il:
- His son begins a conflict. This will essentially lead to a war of sorts — anything from small conflict to a world war is at least theoretically possible. Most likely it would just be a regional conflict, with the biggest threat being the detonation of a potential nuclear bomb.
- His son is all talk. Let’s hope this is it. If he ends up being the little coward his insane father was, the rest of the world will be better off. North Koreans, however, will probably die by the millions during his reign as well.
- His son loses power. This is possible, though nobody knows how possible. There just isn’t enough publicly available information about the workings of North Korea. It’s possible the son could lose power — either to a more sane or more insane group — this is a complete wildcard.
So what does this have to do with precious metals? Plenty.
The Economic Impacts of War
First, anything close to another world war would be absurdly expensive, meaning the economic calamity would be incomprehensible. War destroys resources. It blows up metals and lives and ruins land. This means the world will be poorer if such a war is triggered.
It also means that the United States would probably greatly increase military expenditures. Bombs and bullets are expensive, and so is oil, and so is the production of tanks, and so is the transport costs for hundreds of thousands of troops.
What does this mean? If there’s any sort of war, spending will go up, the debt problem will get worse, and the “day of reckoning” of the future will be that much closer. It might cause a recession of sorts, but if things come down to it, I’ll load up on more gold and silver — regardless of what the prices are apparently doing.
The “Security” Impacts of War
Some will call me paranoid, but that’s fine — they might be just a little right. Either way, if turmoil begins to happen at all, it’s probably a good idea to have all gold you have invested in physically delivered to you. That means if you use SilverSaver.com to buy your gold, go ahead and have them send what you’ve purchased to you — it’s just safer that way.
If any big developments happen with North Korea, I’ll let my free subscribers know. If you’re not subscribed, just sign up below or at the top-right hand side of any page on this website.
I’m currently working on an article explaining why I hope gold prices crash… you’ll want to read this next article, because it has some pretty important views for anyone who wants to be ready for the future no matter what happens. Stay tuned.
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