LONDON/NEW YORK ¨C Investors have piled fresh bets on gold and European defense stocks in response to U.S. President Donald Trump¡¯s threats to take control of Greenland, fearing a geopolitical rift that could end NATO, shatter the global order and damage the dollar.
Although gains in both are expected to continue regardless of what happens to Greenland, investors face the dilemma of how to position for any longer-term fallout. Trump wants to gain control of the Danish territory, through a purchase or even military means, while Greenland does not want to be part of the U.S., a stance supported by Europe and Canada.
While ?investors have previously largely ignored these aspirations, the U.S. seizure of Venezuela¡¯s Nicolas Maduro in a surprise military raid has suddenly made them more tangible. For investors hoping for ?less risk ?after last year¡¯s tariff turmoil, the news makes for an uncomfortable start to 2026.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.