Israel at war, Taiwan under threat, USA in checkmate – these three crises currently threaten your assets
Devastating news overshadowed the past weekend. Rocket attacks by Hamas, classified as a terrorist organization, combined with Palestinian assault forces penetrating Israel, have plunged the Israeli state into fear and terror, but also into a state of high alert. The shockwaves of the brutal assault are already being felt internationally, with almost all stocks collapsing, except for those of major defense contractors such as Rheinmetall. Many asset holders are asking themselves what we are heading toward. Andreas Kroll, CEO of the Noble Group, provides a detailed explanation of the situation the world finds itself in and what needs to be done.
For investors, gold is now absolute self-protection
Countries like Iran support Hamas. It is therefore not an unreasonable thought that Israel’s counterattack may also target them, leading to an escalation of the conflict. According to Andreas Kroll, absolute self-protection is required for investors. Only by reallocating assets into stable tangible assets such as gold can radical losses from stocks and bonds be avoided. Speed is essential here, as the gold price is currently rising rapidly. Investors who seize the opportunity can secure the value of their assets by reallocating into the precious metal now. It is not without reason that gold is considered a “rock in the storm.”
Technology metals and rare earths are the hedge in the Taiwan crisis
The USA, weakened by events in the House of Representatives, could prompt China to attack Taiwan sooner than expected. Should an open armed conflict occur between China and the island state, prices for technology metals and rare earths would most likely skyrocket due to blocked trade. Hedge fund manager Kyle Bass cites numerous indicators in a speech before the Hudson Institute for a possible attack perhaps as early as next spring. For instance, China holds 75% of global grain reserves with only 25% of the world’s population and did not release these to the population even during the strictest COVID-19 lockdown – a possible indication that these reserves are needed for something greater. Furthermore, from 2020 to October 2022, the number of intercontinental missile launch sites increased from 100 to 450, representing 350% growth in just 18 months. In addition, there are legal measures to protect their own currency as well as the purchase of larger quantities of gold to remain capable of action in the event of foreign sanctions.
Every gram of metal purchased now is an indispensably valuable gram
We at Noble BC would also be affected by supply disruptions. At the moment, however, we are fully capable of delivery, so every gram of metal purchased now is an indispensably valuable gram. In addition, crude oil prices are currently rising, which technology metals and rare earths historically follow. Industry and politics require full inventories!