Nevertheless, my opinion on that possibility doesn't matter, either. I hope it doesn't happen, but I'm not going to ignore it for that reason. If the USA gains controls of Greenland's most valuable commodity reserves, then that will trigger repercussions in the global financial markets for years to come.
Own the Sector
In that case, having exposure to metals and minerals in your portfolio is one way to hedge against inflation. Those materials are integral to the production of a wide array of consumer and industrial products. If the cost of acquiring those materials goes up, so too will the price of the products that use them.
The easiest way to do that is to own shares of a mutual fund such as the State Street SPDR S&P Metals & Mining ETF (NYSE: XME). According to the fund sponsor, its objective is "to provide exposure to the metals & mining segment of the S&P TMI, which comprises the following sub-industries: Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel."
The fund's assets are currently allocated 32 percent to steel, 20 percent to coal & combustibles, 16 percent gold, 9 percent aluminum, 5 percent silver, 5 percent copper, and 13 percent diversified metals and mining. Last week, the fund's share price jumped 10 percent as Wall Street immediately recognized the implications of the Venezuela takeover.
My guess is the White House will back away from its threat to use military force to obtain Greenland's hard assets. In that case, this fund could just as quickly give back the gain that it made last week. But if the Trump administration makes good on its promise to obtain those assets by whatever means necessary, then last week's gain could just be the tip of the iceberg.
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