Displaying items by tag: geopolitics
It might be a great time to buy gold, or at least that is what one of the top gold funds on the street is saying. VanEck International Investors Gold fund, which has routinely outperformed peers, says Gold is finally likely to break out its narrow trading range. Gold suffered a terrible bear market from 2011 to 2015, and prices are low and there is little selling pressure. This, coupled with heightened geopolitical risk and inflation, mean that gold seems likely to find a catalyst for strong performance.
FINSUM: We do agree that prices are low and there is little selling pressure, but there have been plenty of other times there were geopolitical catalysts, so it is hard for us to get behind that notion.
On the geopolitical side, most news is ominous. Countries disagree, threaten, embargo, or otherwise make antagonistic acts against one another. But sometimes you get a positive story. Today we want to report on one—the agreement between North and South Korea to compete under the same flag at the Olympics. The two countries, which have been at odds for many decades, will compete side by side in the games, with the women’s hockey team featuring players from both countries. Some see the agreement as placating an aggressive foe, but others see it as a sign of hope and progress.
FINSUM: We find this to be an undoubtedly positive progression, especially since just a couple of months ago the conversation was about how quickly North Korea could have tanks rolling through Seoul.