Trump’s Campaign may be having a Positive Impact on Gold Prices
While is hard to tell where is the gold going in the upcoming months, looking at Trump’s Republican campaign may give us a valuable insight.
The real estate billionaire is getting closer to the White House against all odds and forecasts. At the same time, this unbelievable situation may be having a factual effect on gold prices already.
Some observers said that Trump’s statements about how much gold he is holding in one of his many safe boxes hit positively the prices. Some followers of the billionaire may have felt encouraged to invest in the precious metal.
On the other hand, the real reasons for his influence on gold could be totally different. Declaring $200,000 in bullion and coins is hardly going to have a serious impact. Instead, gold prices could go up fast due Trump’s unofficial plans for the FED.
Going Back to the Gold Standard
In recent interviews, Trump has stated that he likes the idea of reforming the United States currency and bring back what Nixon eliminated in the 70s: the Gold Standard. According to the Republican candidate, a currency backed by gold is the right way to go.
Despite he hasn’t made any official declaration about his plans of going back to the Gold Standard, observers think that is a real possibility.
Trump’s personal preferences and public comments aren’t the only factors the media is considering to think such a thing. Is true that several key people in the Republican Party have serious proposals for a modern Gold Standard.
This represents a chance for Trump to totally agreeing in something with members of his own party. At the same time, the public opinion who is already supporting him would push forward a new Gold Standard model for the country’s actual financial system.
Notable Opinion and Thoughts
Just like always, Mr. Trump has notable detractors in the public media. But we aren’t here to talk about his political popularity. Instead, we are referring to important and highly relevant opinions about Gold Standard and investments in the precious metal.
In the past, Warren Buffett firmly stated that he doesn’t have any interest in investing in gold. According to him, gold produces no value, no profit, and no interest. He has a similar opinion about Gold Standard and a currency based on precious metals.
It’s clear that declarations from prominent investors like Buffett would have a negative impact on gold prices. Many people are often waiting for the latest public messages from famous businessmen to make a financial decision. The truth is that Buffett has, without a doubt, a didactic influence of the masses.
Trump’s case works the other way around. The mere hypothesis of Mr. Trump arriving at the White House represents a nightmare for a huge amount of people, including investors overseas.
The radical speech and dramatic changes in the political direction of the US may depress the Dollar quickly. Investors who hold their saving in Dollars may now be worried about the upcoming months and the political outcome of November’s elections.
Fear is Helping Gold
With a possible drop for the US Dollar in the upcoming months, investors are already backing up their capital with safe-haven assets.
The potential victory of Donald Trump in the next presidential elections may lead people all around the world to look for more secure ways to store their money.
Glancing the chance of having the Gold Standard back again would represent a revolutionary scenario for gold prices. As interesting as always, gold markets are being influenced by endless, unpredictable factors.
Right now we seriously consider that both fear and hope caused by Trump is relevant for gold markets.