LOS ANGELES, Nov. 9, 2016 /PRNewswire/ -- President Trump famously said in his best-seller, The Art of the Deal, "The worst of times often create the best opportunities to make good deals." Over the next four years, Donald Trump certainly has plenty of those opportunities, but economists are wondering: will The Donald be making any deals that are good for gold? The consensus is a resounding: YES.
Precious metals analysts are confident that gold will thrive more under President Trump than most of us have seen before in our lifetime. The policies Trump proposed on his campaign would not only benefit precious metals investors, but also defense contractors, energy drillers, food producers and construction workers, among others, says CNBC. HSBC predicts that under President Trump, gold could rally up to $1,500 an ounce. Jim Rickards, monetary expert and author of Currency Wars, predicted a Trump win for months, and is adamant that the new administration will be tremendous for precious metals. Due to irresponsible fiscal spending by the government over the past decade, precious metals market veterans like Rickards and Raoul Pal have been anticipating a recession, which they predict will hit in the next year or two. In this regard, an increasing gold price was foreseeable, as gold has always enjoyed an inverse relationship with the dollar - and the dollar is steadily losing value. However, the expenses that Trump has committed to investing in to make America great again, including the wall and fairer trade deals, will require additional government spending. This additional spending will accelerate the inevitable, and investors who have rolled funds over into precious metals will see their assets gain value. Julian Phillips, founder of Goldforecaster.com, agrees that a Trump presidency and a push toward "protectionism" would be negative for growth and divisive for the global economy. For these reasons, Phillips anticipates a boom in precious metals. "The need for gold in 'official' hands will grow in such an environment to smooth out the ruptures in cash flows between nations across the world," he said. Phillips predicted that the yellow metal will be first to see a sharp spike due to these ruptures, and that silver would then likely follow suit.