Advances In North Korean Missile Tests Argue for Gold In Your Portfolio
This past Wednesday the North Korean regime successfully tested yet another ballistic missile. The latest escalation of the ongoing international crisis became more critical as the dictator Kim Jong Un boasted that he is able to reach the entire United States using a nuclear weapon. It raised the stakes between the North Korean leader and U.S. President Donald Trump still higher.
Serious geopolitical threats like this one are a good reason to include gold in your investment and retirement portfolios. Gold is your best time tested and thoroughly proven asset that safeguards against instability like the continuing situation in the Korean Peninsula. This is why gold makes sense in an IRA. World leaders who are most aware of the various threats have recognized for decades now that gold still glitters.
North Korea's Latest Technological Milestone
The news broke mid last week that the North Koreans had fired a different and improved intercontinental ballistic missile. The North's Korean Central News Agency (KCNA) argued that the superior technology built in this missile would allow it to carry a warhead to any part of the United States. KCNA stated that watching the test, Kim Jong Un:
“Declared with pride that now we have finally realized the great historic cause of completing the state nuclear force.”
This full extent of this latest claim may be debatable, but certainly experts were troubled by a weapon that Japan noted could reach even the East Coast of the United States. The North Korean KCNA was not idly boasting when it declared:
“The test-fire also re-confirmed the control and stabilization technology, phase separation, and start up technology and the safety of warhead in the atmospheric reentry environment that had already been confirmed.”
The North Korean strategy seems to argue that Kim is looking to have a stronger position to strong arm the United States into sitting down to talks. Meanwhile, the American position insists that the outlaw regime has to first give up the weapons program before any meaningful discussions can happen. These appear to be incompatible starting points for any sort of negotiation.
All the while, regional experts continue to debate at what moment the North will actually be a serious threat to America. There are estimates of as little as a few months to others stretching as long as years.
Both South Korea and the U.S. believe that there are several things holding back Pyongyang. There is debate on their ability to hit specific targets with their weapons as well as for their missiles to successfully survive atmospheric reentry.
The Japanese have taken the lead in assessing the threats from the missile launches based in part on their proximity to North Korea. Japan's Defense Minister Itsunori Onodera noted that the ICBM stayed in the air for 53 minutes of flying time.
This would have put it over 2,500 miles (or 4,000 kilometers) in the air. American Defense Secretary James Mattis agreed that the missile achieved a higher altitude than the previous missile launches from the North.
North Korea's Other Threats Lead to Submarine Missile Development
The North has continued to make threats over the last few months regarding other more destabilizing tests it might do. It has stated that it would fire multiple missiles across Japan towards American Guam or even test detonate one of its hydrogen bombs out on the Pacific Ocean. In support of their threats, they have been developing another vehicle for launching missiles.
This is an SLBM, or submarine launched ballistic missile. Today experts do not think that North Korea is currently able to fire more than a single missile out of a submarine at a time. Yet they do have a few different shipyards working on an offshore missile capability even now.
At the feverish pace analysts see them working on it, they may be capable of firing such submarine missiles even in 2018. North Korea's SLBM test from 2016 demonstrated that they could fly a submerged missile around 300 miles (minimally 500 kilometers), per the Yonhap South Korean news agency. CEO Joseph Bermudez of defense analyst company KPA Associates warned:
“If North Korea can deploy not only developmentally a submarine-launched ballistic missile that is effective and deploy it on ballistic missile submarines, it certainly complicates defense against missile attacks.”
This is definitely a serious concern for both Japan and South Korea. Each nation relies on their advanced missile systems to protect them from attack. Yet with submarines, the North Koreans can evade these missile defenses.
In Japan's case, this might involve missiles launched from enemy submarines that were on the east coast of the country. It would allow the North to shoot from behind the radar of the Patriot missile system in Japan that faces North Korea.
South Korea endures a similar threat from North Korean submarines. Their THAAD missile defense system faces the North. Submarines could launch missiles from behind them and avoid defense detection this way. COO Loren Thompson of the Lexington Institute warned:
“The biggest problem the U.S. faces in dealing with a North Korean nuclear launch is that you can't stop it if you don't know where it is coming from. That is why the North Koreans are building mobile missile launchers on land, and why they're trying to develop the ability to launch from under the seas.”
Hawaii too this past week began testing its old air raid missile warning sirens on a monthly basis for the first time since the end of the cold war. U.S. and Asian authorities are paying attention to the threats from North Korea without a doubt.
North Korea's Ambition to be Recognized As a Nuclear State
Some security analysts are opining that North Korea wants to follow in the footsteps of the Chinese path to nuclear statehood. In their advance to nuclear weapons, China first acquired them and then encouraged the United States to coexist with a nuclear armed China.
This idea makes the South Koreans nervous. President Jae-in of South Korea cautioned against what he called an “uncontrollable” situation if the North is able to develop a completely working ICBM:
“We should prevent a situation where North Korea threatens us with its nuclear arsenal based on misjudgment, or the U.S. consider a preemptive strike.”
The problem with North Korea's eager nuclear ambitions is that there is not a single significant power which has contemplated granting the north such nuclear state recognition. The Japanese went one further than this as their Prime Minister Shinzo Abe addressed his parliament and declared it would represent a serious mistake to offer North Korea this nuclear acceptance.
The North Korean Missile Advances and Tests Are Just Another Reason Why You Need Gold
The geopolitical instability that this continually worsening situation with North Korea represents is serious. It threatens global financial and stock markets as well as your investment and retirement portfolios. This is why you need to plan ahead by including gold in your retirement accounts. Gold has an over 5,000 year long track record protecting against geopolitical crises and events such as these.
Now is a good time to review the Gold IRA rules and regulations as well as to consider what is involved with acquiring IRA-approved metals after you complete a Gold IRA rollover. This will insure your portfolio and help you to sleep better at night.