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How will Gold, Silver and Oil prices be affected? Will this spark a economic downturn? Anyone has rode through the other US post 911 wars care to share?
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Bjorn Ng
15 Jan 2020
Business Analyst at 10x Capital
I honestly think it will only be a temporary reaction. During the time when Iran launched the missiles (day time in SG), I was literally expecting market to panic sell, volatility going up. But basically, life when on as usual. This just tells me something - there really isn't much point to care about these TBH. Because it's market noise.. at least to me!
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Gabriel Tham
14 Jan 2020
Tag Team Member at Kenichi Tag Team
I think the recent move in the markets was just knee jerk reaction.
The US cannot risk another war when it is fighting with China. If they go to war with Iran, China will definitely win the trade war. I believe Trump shot the missle just to distract the world and media from his impeachment trial. Suddenly, all the impeachment news are gone from the headlines and now filled with Iran shooting down the plane.
US is now the biggest producer of Oil, Shale Oil due to new tech in Fracking. So they don't really need Iran Oil.
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It will affect the oil market the most. This is because 30% of the oil supply goes through the straits which iran has a stake in. This will mean a reduction of global oil supply because ships will have to travel through the straits out of iran reach. This will affect oil shipping volume.
That said however, the oil is currentlt suffering from a glut of too much oil.hence a war of 1-2 months will not affect global supply because countries will run down their oil reserves to tide through the crisis. However a full blown but drag too long war will nudge oil prices up a lot
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Jonathan Chia Guangrong
13 Jan 2020
SOC at Local FI
From what I see in the US market so far, not much. Gold spiked, so did oil for a while before it tap...
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Commodities will rise but i don't believe there will be huge spike. Looks like a knee jerk reaction