Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 1% and 2% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 17 2017
By: Ira Epstein

Next-Generation Crazy: The Fed Plans For The Coming Recession
By: John Rubino

COT Gold, Silver and US Dollar Index Report - November 17, 2017
By: GoldSeek.com

Gold Minersí Q3í17 Fundamentals
By: Adam Hamilton, CPA

Bonfire of the Absurdities
By: John Mauldin

The Social Security Inflation Lag Calendar - Partial Indexing Part 1
By: Daniel R. Amerman, CFA

Rob From The Middle Class Economics
By: Gary Christenson

GoldSeek Radio Nugget: John Williams and Chris Waltzek
By: radio.GoldSeek.com

The Metals Market Is A Mess And Will Likely Continue To Frustrate You
By: Avi Gilburt

 
Search

GoldSeek Web

 
Will Trump or Hillary Be Good for Precious Metals Prices?


 -- Published: Tuesday, 21 June 2016 | Print  | Disqus 

By Clint Siegner 

This yearís presidential election is getting lots of attention, and customers are asking about how the outcome might impact the gold and silver markets. The questions generally fall along two lines. One is whether we think a Donald Trump victory will be good for prices and another regarding what a Hillary Clinton presidency might mean.

There is no telling exactly what either candidate has in store for the nation. And, this year more than most, we canít even be certain that either of the front runners will win. There is plenty to dislike about both Trump and Hillary and many voters are looking for alternatives. The Libertarian party has become the fastest growing political party in the country.

Donald Trump and Precious Metals

That said, one of these characters is highly likely to be moving into the White House next January. Letís start by noodling for a bit on what a Trump administration might mean for precious metals. Of the two candidates, he is perhaps the bigger wildcard.

For starters, this is man who owns gold and knows something about why itís important.

There arenít a lot of people like that in Washington DC. Trump reports owning up to $200,000 worth on his financial statement. He even talks about returning to a gold standard from time to time. He told thescene.com: ďBringing back the gold standard would be very hard to do, but boy would it be wonderful.Ē

ďVery hardĒ is an understatement. Trump would need to convince Congress. That means defeating the Federal Reserve and the Wall Street lobbyists for starters. Donít expect him to pick that battle unless an economic or currency crisis gets Americans behind him on sound money issues.

Even if Trump likes gold, it isnít clear he has considered exactly what returning to a gold standard would mean. Tying the dollar to gold makes deficit spending a lot harder for the Federal government. The link to gold would largely prevent the practice of borrowing money into existence to cover the shortfall between the cost of the lavish promises politicians have made to voters and tax revenue the government actually collects.

The Federal deficit ranged between $400 billion and $1.4 trillion in recent years. Trump would need to be pushing for a massive reduction in government, including cuts in entitlement programs which are the lionís share of the federal budget. But he isnít.

Still, each time Trump raises the topic of gold it is good for the metals markets. Wall Street and the Federal government colluded to make Americans forget about gold and silver as money and as investable assets. Today, only an estimated 1% of people own any precious metals coins, rounds, or bars. More awareness will correlate to more ownership. Just doubling the number of folks who own bullion to a modest 2% would have a profound effect on demand and thus, prices.

The effects of a Hillary Clinton victory on precious metals markets should be easier to predict. Expect the unholy alliance between the market manipulators at the Fed, Wall Street banks, and politicians in DC to stay the course on:

Deficit spending is simply a scheme for the 'hidden' confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. -Alan Greenspan

Hillary represents more of the same to be sure. In the end, however, neither candidate is talking seriously about the kinds of fundamental reforms that would change our trajectory toward national bankruptcy. Perhaps even more importantly, Congress isnít talking about them and neither are the vast majority of Americans.

The mega banks are unrepentant and the Federal Reserve (which they officially own and enjoy a very cozy relationship with) isnít going to suddenly acknowledge failure and close up shop.

We do not expect any politician to deliver solutions before the reckoning comes in the currency and bond markets as well as the broader economy. The powerful fundamental case for owning bullion isnít going to change unless or until crisis forces massive reforms. There is no predicting when that will be, but it is almost certainly going to be well after this fallís election.

The way we see it, though, all political outcomes this year are likely to be good for gold and silver.

Clint Siegner is a Director at Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.


| Digg This Article
 -- Published: Tuesday, 21 June 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.