Today one of the top money managers in the world spoke with King World News about the Korean crisis, China and gold.

Korean Crisis, China And Gold
Stephen Leeb:  “The military concerns raised by the Korean crisis, while certainly scary, are relatively straightforward. So far it has been a war of words as President Trump and Korea’s Kim Jong-un ratchet up their threats. We doubt that North Korea, whatever it claims, has the ability to strike our mainland with a nuclear or even a conventional payload. But it does have chemical and nuclear weapons along with an extremely well-armed military that could inflict millions of deaths in South Korea, one of our two most important Asian allies. And the North Koreans already have shown that Japan, our other key Asian ally, is well within range of its missiles…

The worst-case scenario would be an attack on North Korea that leads it to retaliate by attacking South Korea and even Japan, leading to further attacks on the North. The Seoul metropolitan area has a population of more than 25 million. The less likely target, Tokyo, is the world’s largest metropolitan area, with a population of over 36 million. And as long as we’re catastrophizing, it is not that hard to imagine China entering the fray. Goodbye world as we know it.

Contemplating such dire possibilities, the only positive comment I can make is that if you own gold, you should be in good shape. Gold is the only currency whose value has withstood the test from every war in more than two millennia. We would make sure, though, that you own the real deal, i.e., actual bullion, not a financial call on the metal bars, such as ETFs.

Ray Dalio, head of the world’s largest hedge fund, advises all investors to have 5 to 10 percent of their assets in gold. I think people’s allocation should be higher. That’s not because of the threat of military catastrophe, however. It’s because this crisis, beyond its military dimensions, contains a potential major geopolitical threat as well…..More Here