Jim Rickards, monetary expert and author of Currency Wars, predicted a Trump win for months, and is adamant that the new administration will be tremendous for precious metals.
Due to irresponsible fiscal spending by the government over the past decade, precious metals market veterans like Rickards and Raoul Pal have been anticipating a recession, which they predict will hit in the next year or two. In this regard, an increasing gold price was foreseeable, as gold has always enjoyed an inverse relationship with the dollar – and the dollar is steadily losing value. However, the expenses that Trump has committed to investing in to make America great again, including the wall and fairer trade deals, will require additional government spending. This additional spending will accelerate the inevitable, and investors who have rolled funds over into precious metals will see their assets gain value.
Julian Phillips, founder of Goldforecaster.com, agrees that a Trump presidency and a push toward "protectionism" would be negative for growth and divisive for the global economy. For these reasons, Phillips anticipates a boom in precious metals.
"The need for gold in 'official' hands will grow in such an environment to smooth out the ruptures in cash flows between nations across the world," he said. Phillips predicted that the yellow metal will be first to see a sharp spike due to these ruptures, and that silver would then likely follow suit.
Credit Suisse told KITCO Wednesday morning that, "A pillar of Trump's platform has been to repatriate jobs that have moved overseas; in our view, this calls for a weaker USD, in particular against the Chinese RMB." The bank predicts that the weakening dollar alongside the potential for competitive currency devaluations will strengthen gold prices.
"Trump proves very favorable to gold," agreed Jonathan Rose, President and CEO of Capital Gold Group. "In terms of commodities this will be a game changer as people will flock to the yellow metal as a safe haven and portfolio insurance."
As businessman-turned-politician Donald J. Trump gears up for his State of the Union address this January, the nation prepares to hear his vision to making America great again. Without a crystal ball to see into the future, economists and investors agree: security is in gold, and gold will be a vital part in making America great again.
For more information, contact: Kimiya Manoochehri, (800) 510-9594 ext. 260, firstname.lastname@example.org
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SOURCE Capital Gold Group