I know gold bugs who thought Trump would be bullish because "he is going to reflate". But I remind them that the reason they went into physical, in the first place, was to keep their assets off radar. Trump policies, however, should encourage transparent economic activity via decreased rates of taxation. So I tell them that the main incentive to hold Gold has been removed. Is this correct?

Sam Marx writes: 

Not entirely. Trump is heavily involved in real estate and will be president with a 20 billion dollar national debt.

This indicates to me that he will be partial to an above average rate of inflation to enhance his real estate's value and a cheaper dollar to pay off the national debt and his mortgages. With an above average rate of inflation, investors will invest in real estate, REITs, gold and silver.





Speak your mind

1 Comment so far

  1. Kevin McCrary on May 31, 2017 8:54 pm

    Anatoly: You should remember me from back in the 90’s when I was associated with Rob Levin and then I had you trade for a WDC friend. I have been trying to locate you on the internet in order to reconnect and found you posting here, so hopefully you will read this comment and figure out how to contact me. Try my name and initials of city we met and probably where you still live and at service which begins with g. I have some things to discuss with you, especially since it looks like you are still trading.

    From your question about whether to hold gold has certainly been answered in the subsequent months since you first posted in Nov 2016 and it has sunk so low, maybe soon would be a time to go back into gold as a hedge against this long stock market bull run or just as a good investment.

    Are you familiar with Nick Hodge who says when gold goes lower than cost to mine it around $1200, that is when it bottoms out which is around where it is now on June 1.

    I remember you were into EW, so what do you see in some of the charts you are tracking now?


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