Any time there is a change in leadership in any country, the rest of the world is impacted. Donald Trump being elected President of the United States has caused shockwaves across the country for a variety of reasons. Gold investors are confident right now because the uncertainty and unpredictability of Trump’s election could be a good sign for the market. It’s still early, so nothing is guaranteed at this point, but the projections for the gold index are still holding strong. So what exactly does Trump have to do with it all? Read on to find out.
Weaker United States Growth Could Make Gold Prices Soar
Many experts believe Trump’s economic policies would weaken the overall fundamentals of the United States economy. But this could be a positive outcome for those investing in gold, since it generally holds steady during tough economic times. The overall unpredictability of Trump’s election has gold investors feeling good about the future of their investments. Some experts project as much as a 40% increase of the price of gold at some point during Trump’s presidency, compared to the price today.
China’s Economy Could Crash
Trump’s outlook on foreign trade could be detrimental to Chinese exports and their overall economy. If his policies take effect, China could experience many factory shutdowns and cost the country hundreds of billions of dollars. It won’t take long before the trickle down effect happens throughout the world.
But from a gold standpoint, people will likely be looking to buy gold as an investment rather than a consumable. This will ultimately cause the gold index to fluctuate and potentially soar to high levels. If this happens, expect to see a big spike in the amount of people investing in gold.
Uncertainty is Good For Gold
Historical data shows uncertain economic times are a good sign for people looking to trade gold. When there’s a chance of economies crashing or weakening significantly, gold tends to hold its value or slightly increase. There’s no doubt that Trump’s presidency has created uncertainty not only for the United States, but all over the world. Experts make their projections based on his proposed policies, without knowing whether he will strengthen or weaken his stance on them. Regardless, people investing in gold should feel like they are in a good position in the near future.
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