Kim Jong-Il, the dictator of North Korea has died.
North Korea is the most militarized nation in the world with nukes. North Korean troops are staring American soldiers from a few hundred feet. This event may have major implications, especially for gold and silver.
Technically, North Korea is still at war with the United States and South Korea. There are reports that North Korea fired a number of short range missiles this morning. South Korea has put its armed forces on a high state of alert.
President Obama reportedly had an urgent telephone conversation with Lee Myung-bak, the president of South Korea.
Senior ministers in Japan were called in for an urgent security meeting. Yoshihiko Noda, the Prime Minister of Japan, reportedly cancelled an important speech and rushed back to his office.
Korean won fell and so did the Kospi Korean stock market.
North Korea is reported to have fuel for at least eight nuclear weapons. South Korean army has been put on high alert.
If conventional wisdom and past patterns of gold and silver were to be followed, gold would have spiked $100 and silver $3. Instead, immediately after the news was released both gold and silver in Singapore went down.
At the time of this writing, gold and silver in the United States were trying to stage only a modest up move.
The reaction to Kim Jong-il’s death is a tell that gold and silver are in weak hands. Gold will move up from here only after all weak hands are taken out…Read More at Forbes.
