Thursday, August 10, 9:45 am EST. Metals are playing their safe-haven role while this whole North Korea mess heats up. NK has done stuff like this many times in the past. Whenever they did so, the West would cave to them, and hand over billions of dollars in aid to make them just go away. The Prez isn’t playing their game this time. Bill Clinton, back in the 90’s did. Russia and China have roles here, but, so far, we don’t hear in the media that they are doing much, or enough, to defuse this situation. We have every right to pre-empt the NK threat, and I’ve no doubt that when the generals say they are ready, this tinpot dictator will go the way of Saddam Hussein of Iraq in the early 90’s. There will be more shock and awe, the likes of which this world has never seen.
To be frank, I believe that both Russia and China would love for that very thing to happen, to learn what we’ve got, and just how effective we are with it. The Soviet Union armed the Mid-East Arabic peoples around US armed Israel, and then provoked them to attack Israel for that very reason. How is this NK situation really any different. With satellite stealth, we have already identified every detectible target, maybe all; and their GPS co-ordinates are already punched in, and the latest Google earth pictures already loaded, for the before then after study. The appropriate conventional weapons are even now being dispatched and arrayed in their respective battle-ready positions, and before whatever hard red line gets crossed, our generals will let the Prez know that they are at full readiness. We might even get to watch it all live on TV, like we did in January of ’91! Unless some form of diplomacy actually succeeds. Don’t bet on that. Only if China and Russia step in to also seek to muzzle NK, will any diplomatic victory be achieved.
So, between now, and some resolution, the metals are likely to rise. As this situation might further escalate, even if only in the media; the metals will rise. I kept some. I always have some. As technical triggers might trip, I might put on some speculative positions more, but I’m not needing to. I’ll do so as I see technicals improve, and volume swells sufficiently. It may do all of those today!
The other matter is: Should prices commence to go vertical, hyperbolic, that would make for a good time to take some off the table, book some profits, with the intent of buying right back in at lower prices that will surely follow as these tensions begin to die down.
10:26 am EST. As I look in on the metals and miners, the gains are BIG! Go for it, if you feel so inclined, but, by all means, don’t take your eye off the ball, and keep your stop tight. It’ll likely come off, as fast, or faster, than it is coming on, once any word of resolution goes out. I just don’t play that way myself.