Trump Win Signals $1,500 Gold and $24 Silver, predicts Nick Barisheff
Commodities / Gold and Silver 2016 Nov 10, 2016 - 12:48 PM GMTBy: Nick_Barisheff
According to Nick Barisheff, President and CEO of Bullion Management Group Inc. (BMG), "A Trump US presidential victory signals US$1,500 an ounce for gold and US$24 for silver in the intermediate term."
"Trump voters have now injected an unprecedented level of uncertainty into global financial markets," continued Barisheff. "Investors prefer clarity, and until President-elect Trump fully clarifies his economic, trade and foreign policy positions, investors will be in a high-alert state of uncertainty. Roiling markets will compel investors to purchase safe-haven assets, especially precious metals."
"The mainstream financial media, market analysts and fiscal academics continue to overlook the fundamental reasons to own bullion," said Barisheff. "In one word, this oversight boils down to 'uncertainty.' Americans anxious about their future or their trust in large government and financial institutions chose to vote for President-elect Trump."
Barisheff emphasizes that the gold price has a strong historic correlation to the growth of the US national debt of about 90%. "This correlation diverged in 2011, and in order to reflect the current $20 trillion in total debt, the gold price should be at least $2,000 per ounce," said Barisheff. Trump's platform promise of greater infrastructure spending and tax cuts will result in an acceleration of an already exponentially rising debt. Looking ahead several years, Barisheff stands by his long-term forecast as outlined in his book, $10,000 Gold: Why Gold's Inevitable Rise Is the Investor's Safe Haven.
For investors seeking precious metals as a safe-haven option, Barisheff points out that not all precious metals investments are created equal. "Mining stocks can offer short-term leverage to a rising gold price, but they can magnify losses in a declining stock market. Derivatives and proxies of physical bullion, such as ETFs and futures contracts, masquerade as bullion, but they do not offer the superior wealth preservation and appreciation of physical bullion held on a secured, allocated and insured basis," he said.
By Nick Barisheff
Nick Barisheff is the founder, president and CEO of Bullion Management Group Inc., a company dedicated to providing investors with a secure, cost-effective, transparent way to purchase and hold physical bullion. BMG is an Associate Member of the London Bullion Market Association (LBMA).
Widely recognized as international bullion expert, Nick has written numerous articles on bullion and current market trends, which have been published on various news and business websites. Nick has appeared on BNN, CBC, CNBC and Sun Media, and has been interviewed for countless articles by leading business publications across North America, Europe and Asia. His first book $10,000 Gold: Why Gold’s Inevitable Rise is the Investors Safe Haven, was published in the spring of 2013. Every investor who seeks the safety of sound money will benefit from Nick’s insights into the portfolio-preserving power of gold. www.bmgbullion.com
© 2016 Copyright Nick Barisheff - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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