GoldSeek Exclusive: Comments from Trump's Likely Win, Big Gold and Market Moves!
-- Published: Wednesday, 9 November 2016 | Print | Disqus
GoldSeek reached out for comment late tonight as election results started pouring in shocking markets. With the final verdict still out on the winner of the US Elections, but with markets reacting in favor of a Trump win, we solicited the following comments on the big market action:
"I think the rally in gold will be sharp but short. As well, the sell-off in equities should reverse soon. These sorts of political or geopolitical flash points yield short-term trends that don’t usually last long. For gold in particular, long-term trends are built upon a foundation of currency debasement, and not upon political developments.
In fact, a Hillary victory would have been more bullish for gold, since it would have ensured the continuation of the very policies that fueled this year’s rally in the metal.
There’s no denying the very bullish short-term effect of a Trump victory on gold, however. The world is concerned about the volatile personality of Trump, and whatever the result may be, perception is reality. But this is no reason to buy gold at this point, and may mark an opportunity to lighten up on positions with an eye toward buying back once the fundamental economic trends take hold once again."
"As for the impact of Trump's election on the monetary metals market, I wouldn't make much of it right now, despite tonight's surge. In the morning the Fed, the Treasury, and the other Western central banks will still be operating in the currency, bond, commodity, stock, and, yes, the monetary metals markets. If he's elected, Trump won't be giving instructions to the Fed and Treasury until January, if he even has any idea by then of the market rigging the government does. If he ever finds out, he still would have to care about it before the possibility of change arose. He well could be talked out of caring.
Of course Trump's election might have an earlier impact on the monetary metals markets if it prompted, overseas, a great grab for physical gold and its removal from the banking system, a grab so great that it overpowered the paper market antics of the central banks. We'd all love to live long enough to see that day. But geopolitical turmoil hasn't done much for gold in recent decades and I'd be surprised if that changed any time soon."
No matter what ... tonite has revealed how manipulated and corrupt our financial/political system really is.. Think about what occurred on Sunday re the squashing of the FBI/Clinton email debacle. It made no sense in that everyone said it would take months to get to the facts. When FBI director Comey squashed the deal, it was ludicrous. But, the DOW then soared, right abovethe 18,200 level the GATA camp had mentioned for months as the Gold Cartel/PPt's focus. Meanwhile, as expected, the reverse barometer of U.S. financial market health, gold was CRUSHED ahead of tonite’s election.
The votes are not in yet to determine the result, BUT what was done onSUNDAY is so beyond obvious that the establishment knew that Clinton was in much more trouble than the establishment press was revealing.
THUS, these desperados got to Comey and forced him to be a pitiful coward, or face death.
What a nightmare.
Gold and silver have been held to artificially low prices for far longer than any of us anticipated.
"Donald Trump’s victory, which I first predicted the day after the BrExit, will have the political, economic, social, and monetary impact of a “BrExit times ten.” In fact, Trump used that very phrase, per the aforementioned Audioblog title, in his speeches last week.
His “unexpected” victory will be a seminal event for financial markets, which have been pushed to record valuations, amidst the worst economic environment of our lifetimes, by the “machine” fronted by the Clinton and Obamas that is now dead in the water. To that end, it may well spell the end of the gold Cartel, given that it was run by this now dead cabal – which if they still have the ability to maintain power following this historic regime change, may not see it worthwhile to continue.
To that end, I expect the global anti-establishment trend started by the BrExit to go hyperbolic in 2017, starting with the Italian constitutional referendum next month. And this time, financial markets will NOT be saved by Central banks - as they have lost ALL credibility. Including the Fed, which as of today, will once and for all be understood to have been LYING about rate hikes all along.
Get ready for some very, very, hard times – and very, very good times for Precious Metals."
"In my view, investors may want to consider including an investment in their portfolio when it satisfies two conditions: it exhibits low correlation to their existing investments; and there's an expectation of a positive return.
Regarding correlation, our research shows the monthly price of gold has a 0.00 correlation to the S&P 500 index since the beginning of 1971 through the end of March. In an environment where equities and many other assets may be vulnerable, gold's low correlation might make it an attractive investment.
Regarding future performance, we don't have a crystal ball, either. However, our research shows that the price of gold has been up in each bear market since 1971, with the notable exception of the bear market when former Fed Chair Volcker substantially raised interest rates. Indeed, we agree that if investors get properly compensated by holding cash through a high real rate of return, i.e. net of inflation, gold might perform poorly. Having said that, if one believes that the Federal Reserve may be slow and gradual in raising rates and that real interest rates may remain low, then gold might be a formidable competitor."
"I think a Trump victory shows people have had enough of the self-serving establishment elite and actually have enough power through decentralized communication over social media and other channels to enable the will of the people to persevere. The next step is eliminating legal tender laws, the ultimate centralized evil in the world. Ending forceable use of fiat currency to pay your taxes and court fees will usher in a new era of freedom unknown in recorded human history."
“What a ride... For Gold investors, some had forecast a big rise in gold with a Trump win and indeed it took place rising to almost $1330 for a brief time, and as the market digested the "news" the gold price fell rapidly back to almost to the starting point. Perhaps, the market agrees that regardless of the party in office true change in the financial system is difficult at this point and market gyrations not withstanding will reflect this fact.
Longer term the precious metals will reflect the reality that the present paradigm is favorable to the very few over the many and in several ways the system has ceased to work. This means more people will wake up to the fact that they are actually responsible for their own well being and thus from a financial perspective many more will move into the physical precious metals markets regardless of national origin, political party, race, creed, or beliefs. The instinct to preserve what one has (money- as a means of savings) transcends everything else in the human experience once the realization that the system is rigged against them actions will accelerate.”
More comments to come ..
Please check back as more comments will be added as they come in.
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