Geopolitical Turmoil Prompts Safe Haven Gold Demand

Geopolitical Turmoil Prompts Safe Haven Gold Demand

Mar 29th 2020

Posted by LCR Coin

Los Angeles CA, October 14, 2017 (LCR Coin Inc.) There are several significant geopolitical events occurring at the same time and any one of them could lead to global ramifications. Gold has been the beneficiary of this environment and will continue to benefit as long as the turmoil in Washington persists.

This past week, hundreds of thousands of Spaniards protested any secession of Catalonia from Spain after a large majority of Catalan voters chose independence in the recent referendum.

Catalan regional President Carles Puigdemont announced Tuesday that he would proceed with the declaration of independence, but would first allow a period for dialogue with the national government in Madrid.

Jean-Claude Juncker, President of the European Union (EU) warned that the secession of Catalonia from Spain would cause a domino effect that could splinter the EU. In the meantime, Brexit, the British exit from the EU, is still an unfinished issue.

Juncker in a recent speech where he claimed that the euro had prevented wars in Europe, also told the U.K. they must pay the so-called Brexit bill before any negotiations for future trade.

In the U.S., tensions not only continue to escalate with North Korea, but now with Iran as well. Germany's Foreign Minister, Sigmar Gabriel says that Mr. Trump's decision not to certify the nuclear pact that the U.S. signed with Iran could put Europe in danger of war.

“My big concern is that what is happening in Iran, or with Iran from the US perspective, will not remain an Iranian issue – but many others in the world will consider whether they themselves should acquire nuclear weapons too, given that such agreements are being destroyed,” said Mr Gabriel. “And then our children and grandchildren will grow up in a very dangerous world,” he added.

Fortunately, Germany has been preparing for quite some time for this very type of crisis. In fact, according to the latest report from the World Gold Council (WGC), Germany became the world leader in gold investing in 2016.

One would expect either China or India, as they hand the title back and forth every year, but Germany was a surprise. Astute German investors ploughed as much as $8 billion into gold bars and coins, as well as exchange-traded commodities (ETCs), while setting a new annual record.

But let's not overlook Russia, which has been in U.S. news recently for alleged meddling in the 2016 U.S. elections. The resolution of that offense could take American politics into unknown directions at the conclusion of the Mueller Investigation.

The WGC reported this week that the Central Bank of Russia, by accelerating the pace of its gold purchases, has lifted its Gold reserves to their peak in the 17 years since Putin took power. In the past 10 years alone Russia has tripled its Gold reserves from 600 to 1800 tons.

Gold remains the perfect global currency. That's why an investor's first line of defense against uncertainty is physical gold. Gold can't be hacked, it is the ideal diversifier in any portfolio, and an excellent store of value. So when you're ready to join the savvy investors who leverage tangible assets to both increase and preserve their wealth call LCR Coin at (800) 830-5578.