Gold – American Political Report https://americanpoliticalreport.com There's a thin line between ringing alarm bells and fearmongering. Mon, 09 Dec 2024 17:54:04 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://americanpoliticalreport.com/wp-content/uploads/2024/10/cropped-Square-32x32.jpg Gold – American Political Report https://americanpoliticalreport.com 32 32 237576155 Gold Breaks Out With Central Bank Surge and Interest Rate Drops Expected https://americanpoliticalreport.com/gold-breaks-out-with-central-bank-surge-and-interest-rate-drops-expected/ https://americanpoliticalreport.com/gold-breaks-out-with-central-bank-surge-and-interest-rate-drops-expected/#respond Mon, 09 Dec 2024 17:54:04 +0000 https://americanpoliticalreport.com/gold-breaks-out-with-central-bank-surge-and-interest-rate-drops-expected/ Precious metals are seeing gains once again following the post-election dip, just as many economists had expected. Even China, which had been holding back for five months, returned to purchasing massive quantities of gold.

“Falling U.S. interest rates and ongoing solid demand from central banks are supporting the gold price,” USB Analyst Giovanni Staunovo said. “(It) Was definitely good to see again purchases by the Chinese central bank last month, but other central banks have been also buying large quantities.”

USB is not alone in their bullish shift on precious metals. Their Chinese counterparts echoed the sentiment to justify recent purchases.

“The decision to increase gold holdings, particularly following Trump’s recent election victory, reflects the PBOC’s proactive approach to safeguarding economic stability amid evolving global conditions,” OCBC analysts said in a note.

All of this was expected by Jonathan Rose, CEO of Genesis Gold Group, who had prepared his company before the election for the results that he was hoping would happen.

“While other gold companies were cheering for Democrats to win so they could continue to sell on fear, we positioned our clients to be ready for a Trump victory,” he said. “It’s paying off now and will pay off even more once he’s in office; expect major gains in gold and silver very soon.”

Genesis Gold Group is a faith-driven precious metals firm that specializes in rolling over or transferring retirement accounts into Genesis Gold IRAs backed by physical precious metals.

“With interest rate cuts coming and a return to sound fiscal principles, we expect the economy to perform much like it did during President Trump’s first term when gold prices rose 51%,” he continued.

The ongoing “bubble” caused by geopolitical turmoil and a stock market that has been propped up by inflation have prompted many Americans to consider safeguarding their retirement with physical gold and silver. To learn more about how Genesis Gold Group can help, request their free, definitive Wealth Protection Kit.

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Gold-Backed or Bust: Judy Shelton’s Plan to Tame the Fed and Restore the Dollar https://americanpoliticalreport.com/gold-backed-or-bust-judy-sheltons-plan-to-tame-the-fed-and-restore-the-dollar/ https://americanpoliticalreport.com/gold-backed-or-bust-judy-sheltons-plan-to-tame-the-fed-and-restore-the-dollar/#respond Tue, 03 Dec 2024 11:37:58 +0000 https://americanpoliticalreport.com/gold-backed-or-bust-judy-sheltons-plan-to-tame-the-fed-and-restore-the-dollar/ (AIER)—Judy Shelton has spent her career advocating for sound money. Her latest book, “Good as Gold: How to Unleash the Power of Sound Money,” makes an up-to-date case for reinstituting a gold standard. Her intriguing conclusion is that the dollar can be reconnected to gold by simply issuing federal treasury bonds with gold-redeemability clauses. The book also addresses recent events and important current debates about monetary systems like whether central bankers should have wide policy discretion, whether fixed or floating exchange rates are better for economic growth, and what happens when countries manipulate their currency to boost exports.

Dr. Shelton engages these questions in the context of academic debates, but she also uses the lens of rational economic planning to evaluate how the monetary system contributes to or detracts from economic growth. At the end of the day, the case for sound money rests on the claim that it will generate more stable and greater long-run economic prosperity. Dr. Shelton believes sound money will do just that. But what would such a sound money regime look like?

Although Dr. Shelton would prefer a system along the lines of a classical gold standard, she would probably be content with other monetary systems that dramatically reduced the discretion of policymakers. The real problem with our current monetary regime is not primarily technical. It is behavioral. Because public officials have strong incentives to inflate the currency, bail out various corporations, and underwrite extensive government borrowing, they do a poor job conserving the value of fiat currency or providing a predictable stable system of interest rates, credit, liquidity, etc.

In the first couple chapters of “Good as Gold,” Dr. Shelton takes the Federal Reserve to task. The wide discretion Fed officials can exercise makes monetary policy unpredictable. Although Fed officials argue that their decisions are countercyclical, that may not always be the case. As Milton Friedman famously noted, the effects of monetary policy decisions have “long and variable” lags. Despite claims to being “data-driven,” Federal Open Market Committee (FOMC) decisions remain unpredictable. Data can change rapidly and unpredictably, which can make policy change rapid and unpredictable too.

Another problem is that the “data-driven” mantra invokes the assumption that the data always clearly indicate what ought to be done. In fact, this is rarely the case. Not only do a wide variety of inflation measures exist, but there are also a wide range of time intervals over which to compare inflation trends. But that’s not the worst of it!

Employment, unemployment, GDP, and a host of other economic numbers suggest different things are going on in the economy. Retailers expect strong record spending this holiday season while the N.Y. Fed just released a study where the number of people reporting concern about their ability to make debt payments hit its highest level since 2020. How to weigh these various factors is far from clear.

Another problem with Fed policy is the rapid change in its interest rate targets. Three years ago, the short-run interest rate was ~.5 percent. Within two years it was over 5 percent. That rapid change created many issues in the economy, only some of which we have recognized. The rate-hike cycle created significant turmoil in the banking industry with Silicon Valley Bank and Signature Bank failing entirely while many large regional banks shrank or were enfolded into larger national banks.

The commercial real estate market has also been upended. While the owners of office buildings were already facing strong headwinds from the pandemic’s normalization of remote work, the Fed delivered a one-two punch when it raised interest rates. Most large commercial real estate investors use variable rate debt to finance their portfolios—which means the interest rate they pay moves with the market. Adding a couple percentage points to one’s debt rapidly changes the viability of a venture. In addition to higher debt-servicing costs, commercial real estate investors saw the market value of their holdings decline precipitously as buyers disappeared, financing costs rose, and future potential cash flows were more heavily discounted.

The previous rate-hike cycle in 2006 and 2007 preceded a major recession and financial crisis. Even as the Fed creates disruptions in markets, it has also overseen the relentless decline in the value of the dollar—ironically in the name of pursuing their mandate to maintain price stability. A dollar in 2024 is worth what a quarter was in 1980 and what a dime was in 1965. And a 2024 dollar is worth about what a penny was worth in 1900.

This downward march in the value of the dollar creates problems.

It drives up asset prices, favoring those who have investment savvy while eating away at the value of people’s savings and undermining the prosperity of those on fixed incomes. The steady fall of the dollar also distorts price calculations and expectations.

I’ve argued elsewhere that the Fed has been a prime culprit in boosting housing prices and, as a result, creating a “transitional gains trap” where homeowners with significant equity, juiced in large part by easy money, have organized to protect their equity by putting up local legal barriers to building new housing.

But “Good as Gold” includes much more than criticism of the Fed. Dr. Shelton points out that unstable money and exchange rates create costs to doing business. International firms must devote time, energy, and money to protect themselves from erratic fluctuations in currency exchange rates. Creating these “hedges” to protect their profitability from exchange-rate risk necessitates additional classes of assets and asset traders—contributing to greater “financialization” of the economy. While the services being offered create real value for corporations, they come at a price and would not be needed under more stable monetary arrangements.

Besides the frictions and costs that unstable money introduces into day-to-day business operations, it also creates long-term consequences when it comes to investing. If certain exchange rates can move 15 percent, 30 percent, or more in a single year, Dr. Shelton asks, then how can investors rationally allocate capital based on real factors and comparative advantage? The structure and mix of capital investment we currently have across countries and within the same country looks very different than it would in a world of stable money.

Dr. Shelton makes this point indirectly in a fascinating chapter about the monetary debate between Milton Friedman and Robert Mundell. Both were staunch advocates of free markets, but they differed in what monetary regime they thought best. Friedman argued in favor of freely floating exchange rates set by market participants. In this world, governments would feel pressure from markets, in the form of capital outflows, if they engaged in domestic monetary policy shenanigans. Mundell, on the other hand, favored more stability in exchange rates that would require domestic prices to adapt to changes in trade and capital flows. Friedman and Mundell both agreed, however, that government officials and central bankers should have very little discretion in how they managed a country’s monetary system.

In a later chapter, Shelton offers the problem of “currency manipulation” as a reason for implementing a sound money regime. Her argument basically asserts that countries that actively depreciate or weaken their domestic currency experience short-run benefits (in the form of more competitive exports) and long-term costs (in the form of inflation and capital outflows). Other countries, however, feel short-run pain as their exports decline and their factories shut down—even though they also receive cheaper goods and reallocate much of the displaced labor and capital. I find this line of reasoning a bit curious.

Shelton rightly champions free trade and argues that it works best when countries do not artificially manipulate the value of their currencies. No objection here. But I am not convinced that a sound money regime, even a gold standard, would change other countries’ incentives to devalue their currency. Gold convertibility of one currency does not prevent the issuer of a different fiat currency from issuing large amounts of that fiat currency to reduce the relative price of its exports.

I suppose one could argue (and Dr. Shelton does) that currency manipulation becomes easier to discern because currencies will be valued in terms of a fixed standard (gold), rather than in terms of another fluctuating fiat currency. For example, the price of gold in terms of dollars increased by 77 percent from May 2014 to May 2024.

The currencies of the largest trade partners with the United States lost far more value relative to gold in that periodEuros (129 percent), Mexican Peso (131 percent), Canadian dollar (122 percent), Chinese yuan (105 percent), and Japanese yen (165 percent). But that probably matters relatively little to the devaluing regime. Using gold as a benchmark might reveal relative changes in the value of currencies better. It could also defuse the language of “currency manipulation.”

Instead of attributing motives to foreign central bankers, policy makers could set relatively straight-forward criteria for when another country’s currency declines in a distortive way. Shelton suggests that some level of tariffs should be imposed in response to another country’s currency devaluation to offset the monetary distortion to international trade. This idea may not be crazy from a purely technical standpoint, yet I would hesitate to recommend it because of the likely distortions and co-opting of such policies by special interests. I also question whether the costs of not imposing tariffs on depreciating currencies is as high as Dr. Shelton believes.

Sound money advocates like Shelton must explain how we could get to a sound money regime. On the one hand, advocating a gold standard seems archaic and implausible. On the other hand, it would not be technically difficult to implement. And, in fact, given the dominance of the U.S. dollar, if another major currency, such as the Euro, also chose to move back to gold redeemability, it is not hard to imagine other major currencies (Yen, Yuan, Pound, etc.) following suit. The political difficulty, of course, is getting the United States to take the first step and then getting the EU to follow suit.

The odds of successful reform are highest when pursuing the easiest path to transition the current system to a sound monetary regime. Abolishing the Federal Reserve is not on that path. So tying dollars back to gold using the Fed makes more sense than moving back to a pre-Fed world. Similarly, constraining the FOMC seems far more plausible than abolishing it.

It may be worth raising a few other important secondary questions. At what price will the currency be convertible into gold? Dr. Shelton has suggested that incorporating a gold clause in Treasury bonds could be a good method for discovering the right price of convertibility. In fact, putting gold convertibility into government bond contracts may be sufficient, in and of itself, to tie dollars back to gold.

Afterall, depreciation of dollars would create consequences for the federal government and the Federal Reserve, the very institutions primarily responsible for managing the dollar and maintaining the monetary system. Shelton also makes the important point that currency should be seen as being like a weight or measure—something standardized for the public to use. It should not be viewed as a policy instrument or lever for managing the economy. This simple point rarely arises in modern commentary on the Fed and on monetary policy—yet it has deep legal and historical roots in the American founding and beyond.

Another benefit of moving to gold redeemability for U.S. bonds is that it utilizes U.S. gold reserves more effectively. Currently, the United States is the largest holder of gold in the world. But ironically, that gold is severely undervalued on the government’s ledger. Its book value is less than two percent of its market value (i.e., on the ledger the gold is valued at less than $50/oz when its market value is over $2700/oz). Offering gold redeemability might also open up the option for extremely long-dated debt (50 years or more) and lower interest rates because the most significant risk to lending to the federal government, the devaluation of future dollars, has been taken off the table.

The likely benefits of such bonds are so significant that it may seem surprising that they have not been implemented. The problem, of course, is that this form of bond would reveal the man behind the curtain. It would show that government officials can and do play fast and loose with the dollar and with the U.S. financial system to enable themselves and their friends a free hand to borrow and spend, and to actively “manage” the economy.

Dr. Shelton’s proposed changes will be vigorously resisted by those who benefit from the existing status quo—large commercial banks and financial institutions, Federal Reserve officials and bureaucrats, politicians and regulators—everyone who benefits from the Fed’s tendency to loose monetary policy. Still advocates of freedom and prosperity should continue to make the arguments and offer proposals for moving to a sound monetary regime.

And that is exactly what Dr. Shelton does in “Good as Gold.”

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Goldman Sachs the Latest to Predict Gold Prices Breaking $3,000 in 2025 https://americanpoliticalreport.com/goldman-sachs-the-latest-to-predict-gold-prices-breaking-3000-in-2025/ https://americanpoliticalreport.com/goldman-sachs-the-latest-to-predict-gold-prices-breaking-3000-in-2025/#respond Mon, 02 Dec 2024 13:23:26 +0000 https://americanpoliticalreport.com/goldman-sachs-the-latest-to-predict-gold-prices-breaking-3000-in-2025/ The election of Donald Trump combined with geopolitical turmoil and anticipated interest rate cuts have gold and silver bulls salivating over the current lower prices. They’re saying now is the time to buy before the next big surge, which some believe could start before Christmas.

Analysts at Goldman Sachs joined the chorus of experts expressing their belief that Gold could hit $3,000 per ounce sooner rather than later.

Goldman Sachs analysts predict that gold prices will reach new heights in 2025 due to increasing central bank demand and anticipated US interest rate reductions. Daan Struyven and other analysts have set a target of $3,000 per ounce by December 2025. The surge in gold prices is expected to be propelled by central-bank purchases and US interest rate cuts, supported by a potential boost from exchange-traded funds (ETFs) as the Federal Reserve implements policy easing.

In a recent note, Goldman analysts highlight the ongoing support from central banks, particularly those with substantial US Treasury reserves, as they diversify their holdings to include gold.

“It’s interesting that Central Banks have responded the way they have,” said Jonathan Rose, CEO of Genesis Gold Group. “They’re generally more reserved but the current prices have them buying, which is a good sign for our clients based on the proper mix of metals we have for them.”

According to Bloomberg:

Bullion jumped as much as 2% in intraday trading, surpassing $2,600 an ounce, on Monday after taking a battering in the wake of Donald Trump’s US presidential election victory, which spurred a dollar rally that weighed on commodities.

The bank listed a wager on bullion among its top commodity picks for 2025, citing Federal Reserve rate cuts that reduce the opportunity costs of holding gold; tariffs that underline its role as an inflation hedge; and steady demand from central banks.

“We put together a Wealth Protection Kit for Americans who want to protect their retirement with physical precious metals,” Rose said. “This week we’re expective a big surge with the prices at their most competitive in months.”

The prospects of President Trump using tariffs for both revenue and as a bargaining tool has Central Banks betting heavily on gold and silver. Even if tariffs aren’t immediate, the threat of them is already being put on the table by Trump over a month before his inauguration.

Once they hit, prices on gold and silver could skyrocket.

Learn more about protecting wealth or retirement with physical precious metals by requesting the free, definitive Wealth Protection Kit.

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Poland Reads the Signs, Doubles Down on Gold https://americanpoliticalreport.com/poland-reads-the-tea-leaves-doubles-down-on-gold/ https://americanpoliticalreport.com/poland-reads-the-tea-leaves-doubles-down-on-gold/#respond Sun, 17 Nov 2024 13:28:28 +0000 https://americanpoliticalreport.com/poland-reads-the-tea-leaves-doubles-down-on-gold/ Poland has decisively established itself as a formidable player in the global arena of gold reserves, notably surpassing Great Britain by amassing over 400 tons of this precious metal. This significant milestone not only illustrates Poland’s growing commitment to financial security but also emphasizes its resilience in economic matters.

According to Adam Glapiński, the esteemed governor of the National Bank of Poland (NBP), the central bank currently holds an impressive total of 420 tons of gold, thereby officially securing Poland’s position among nations with some of the largest gold reserves worldwide.

“Poland has entered the club of the world’s largest gold reserve holders,” Glapiński announced, emphasizing that this achievement surpasses that which is held by the United Kingdom.

Strategic Goals for Poland’s Gold Reserves

The governor confirmed that one primary objective for NBP is to elevate gold holdings to comprise 20% of its total foreign exchange reserves.

“This move will align us with the world’s leading economies,” Glapiński noted. At present, approximately 15% of Poland’s reserve assets are constituted by gold—a reflection that signifies substantial progress toward achieving this ambitious target.

In recent months, specifically over a period spanning five months, Poland has expeditiously intensified its efforts in acquiring additional quantities of gold—adding an impressive 39 tons—to bolster its already considerable reserves. Such strategic buildup serves as a testament to Poland’s proactive stance against potential global financial disruptions.

The Case for Gold: A Financial Shield

Glapiński has been an unwavering advocate for utilizing gold as a safeguard against financial crises and market volatility. He reiterated its unique qualities when he stated,

“Gold retains its value even in the event of a systemic collapse in the global financial network, where digital assets may fail.”

He further emphasized that this enduring asset remains impervious to credit risks and devaluation wrought by monetary policies—making it not merely valuable but remarkably durable as well.

Furthermore, it is crucial to recognize that Poland’s renewed focus on accumulating wealth through golden assets is deeply entrenched within historical contexts and national experiences; memories etched into collective consciousness regarding German occupation during World War II and subsequent Soviet-era dominance remind citizens alike about both tangible security measures and their undeniable importance amidst turbulent times ahead.

Cultural Significance and Economic Resilience

This profound sentiment resonates deeply within many Polish hearts; Marta Bassani-Prusik—the head expert overseeing precious metals trade at Mint Polska—highlighted such cultural significance succinctly:

“For many families, gold has been a lifeline through turbulent times, a tradition passed down for survival and security.”

By placing paramount importance upon acquiring more extensive stocks related directly back towards physical manifestations like golden bullion bars or coins themselves rather than relying solely upon fluctuating currencies alone ensures ultimately greater preparedness while simultaneously conveying determination towards enhancing national economic resilience moving forward into uncertain future landscapes ahead filled with challenges yet unseen across our globe today!

Undoubtedly then—we see here indeed how these achievements undeniably underscore wider commitments made toward attaining newfound autonomy concerning fiscal independence alongside ambitions directed solely aimed at long-term stability.

Article generated from corporate media reports.

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“The Correction Before the Surge”: Why Gold and Silver’s Future Is Brighter Than Ever https://americanpoliticalreport.com/the-correction-before-the-surge-why-gold-and-silvers-future-is-brighter-than-ever/ https://americanpoliticalreport.com/the-correction-before-the-surge-why-gold-and-silvers-future-is-brighter-than-ever/#respond Fri, 15 Nov 2024 17:13:22 +0000 https://americanpoliticalreport.com/the-correction-before-the-surge-why-gold-and-silvers-future-is-brighter-than-ever/ It was long overdue by most estimates. Precious metals prices have been steadily rising for far longer than even the most optimistic analysts were expecting a year ago. But Donald Trump’s decisive victory has prompted the “correction” that economists have felt was necessary for a long time.

Kitco analysts predicted a 5%-10% correction following the election and we’re currently in that range. As they recently noted, it’s now just a question of when the next surge begins.

“Gold is set to explode once this necessary and healthy correction has run its course, simply because there is no way to avoid a material dollar devaluation next year to deal with out-of-control federal government deficits and debts, while the Fed is in a lose-lose situation. If the central bank raises rates, we head into a recession. If they continue to cut rates, inflation will rise even further.”

Confidence in the coming Trump administration has already been evident in several markets, including stocks and cryptocurrencies. This, too, was widely anticipated because of the economic stability Trump’s policies will bring. Geopolitically, a calming of calamities has already begun over two months before his inauguration.

As Jonathan Rose, CEO of Genesis Gold Group, highlighted before the election, there is one factor that made him plan properly for his company’s future under a Trump administration.

“Unlike most gold companies, we are rooting for Trump to win because we know what it will mean for the long-term,” he said on the even of last week’s election. “Of course his win will help the nation, but it will also be a huge positive for precious metals because it will finally bring the 800-pound gorilla into the spotlight: national debt.”

Precious metals companies have been thriving under the fear of a potential Kamala Harris regime. But Genesis Gold Group positioned its retirement offerings based on confidence in a Trump victory. The “fearmongering” over CBDCs, geopolitical turmoil, and BRICS had been heavy but there’s now a sense of confidence in how the financial world will react to a Trump administration.

The positive economic benefits will bring the national debt into focus, and that will be good for gold and silver prices. This is why Rose believes it’s time to take advantage of the lower prices immediately.

“This is the correction before the surge,” he said. “Many analysts are putting gold at over $3,000 per ounce next year. Others are pointing to higher numbers. After that, the crystal balls become fuzzy but the roadmap points to steady growth which is perfect for rolling over or transferring retirement accounts today in the midst of the healthy correction.”

Genesis Gold Group specializes in helping Americans protect their wealth or retirement with physical precious metals. Learn how they can help you take advantage of the Trump administration’s economy with their free Wealth Protection Kit.

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Fed’s Bad Moves Plus Trump’s Good Policies Could Yield $8,000 Gold Within This Bull Market Cycle https://americanpoliticalreport.com/feds-bad-moves-plus-trumps-good-policies-could-yield-8000-gold-within-this-bull-market-cycle/ https://americanpoliticalreport.com/feds-bad-moves-plus-trumps-good-policies-could-yield-8000-gold-within-this-bull-market-cycle/#respond Sun, 10 Nov 2024 09:30:51 +0000 https://americanpoliticalreport.com/feds-bad-moves-plus-trumps-good-policies-could-yield-8000-gold-within-this-bull-market-cycle/ The financial implications of the Federal Reserve’s monetary policy are drawing significant attention, particularly regarding its potential to trigger a new crisis. Brien Lundin, Editor of Gold Newsletter and CEO of the New Orleans Investment Conference, raises concerns about the Fed’s management strategies.

“The Fed’s management of the price of money is going to create the next crisis, and when that happens, they are going to be forced to get back to zero interest rates,” he said.

Lundin emphasizes that recent cuts in interest rates—25 basis points last week following a 50-basis-point reduction in September—are merely indicative of a more extensive rate-cutting cycle. This trend is largely driven by the unsustainable costs associated with servicing national debt.

“Successive rate cuts are baked into the cake because of the tremendous cost of servicing the federal debt at these interest rate levels,” Lundin continued.

He further elaborates on impending challenges for corporations as they navigate their debt obligations amidst rising interest rates.

“The debt rate tsunami on a corporate level – we’re going to see a lot of debt resets coming up in the months just ahead.”

According to Lundin, companies already struggled with their debts during periods characterized by zero-interest rates; thus, maintaining solvency will become exceedingly difficult under current circumstances.

“Companies had trouble paying and servicing those debts in a zero-interest rate environment. They will find it nearly impossible to service those debts at current interest rates. The Fed really has to get rates down. The longer it waits, the more urgently it will have to do so at some point.”

Moreover, he suggests that negative interest rates may soon be necessary for addressing future economic challenges.

“My longer-term picture view is that we have to have negative real rates with debt loads this high. The cost of servicing that debt needs to be lower than the rate that currency is depreciating. Otherwise, the entire house of cards collapses.”

Jonathan Rose, CEO of Genesis Gold Group, added to the points by highlighting the election of Donald Trump.

“The Fed’s moves combined with President Trump’s fixes in the overall economy will be hugely beneficial for those holding precious metals,” he said. “I know some are projecting much higher numbers but we conservatively see $3,000 and then $4,000 ounces for gold on the horizon.”

In light of these forecasts and analysis regarding monetary policy adjustments and corporate indebtedness trends, Lundin anticipates gold prices soaring between $6,000-$8,000 within this bull market cycle based on historical trading patterns observed over time.

Additionally noted was gold’s recent divergence from its historically inverse relationship with both dollar value and bond yields—a development worth observing as market dynamics evolve amidst changing fiscal policies.

Americans who want to take advantage of physical precious metals ahead of the boom can learn more by requesting a free Wealth Protection Kit from Genesis Gold Group.

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Gold Skyrocketed 51% During Trump’s First Term — Will It Do the Same in His Second? https://americanpoliticalreport.com/gold-skyrocketed-51-during-trumps-first-term-will-it-do-the-same-in-his-second/ https://americanpoliticalreport.com/gold-skyrocketed-51-during-trumps-first-term-will-it-do-the-same-in-his-second/#respond Fri, 08 Nov 2024 02:08:22 +0000 https://americanpoliticalreport.com/gold-skyrocketed-51-during-trumps-first-term-will-it-do-the-same-in-his-second/ Now that Donald Trump is officially the President Elect, some are wondering if his presidency bodes ill for gold and silver prices. On the contrary, this is exactly what people “in the know” have been hoping for to keep precious metals prices moving forward just as they did in Trump’s first term.

After the initial post election drop, gold and silver prices started rising shortly after Trump’s victory.

“Considering everything we know, it’s ludicrous to think Trump will harm gold and silver prices,” said Jonathan Rose, CEO of Genesis Gold Group. “Gold rose 51% in his first term. I suspect they’ll rise even faster in a second term considering the state of geopolitics today.”

Precious metals have been consistently hitting record highs and the vast majority of analysts and bankers are predicting more of the same throughout 2025 now that Trump has won. Companies like BlackRock, Bank of America, and JPMorgan Chase are betting heavily on precious metals. Central banks have been buying up as much gold as they can for three years.

“The economic world is very different than it was in the past when Republican administrations hurt precious metals prices,” Rose continued. “If anything, I would expect prices to rise faster now that Trump has won because gold and silver are necessary to properly rebuild our economy with his policies.”

Genesis Gold Group is a faith-driven company that specializes in rolling over or transferring retirement accounts into a Genesis Gold IRA backed by physical precious metals. They can do so without tax-penalties and with little money out of pocket, allowing Americans to hedge their life’s savings against geopolitical turbulence.

With U.S. debt projected to hit $54 trillion by 2034, BRICS nations pushing for de-dollarization, and the possibility of war on multiple fronts, it behooves Americans to consider protecting their wealth or retirement with physical precious metals.

Genesis has put together a comprehensive Wealth Protection Kit and a Digital Dollar Defense Guide that give stellar insights about what to expect in both the near and distant futures. Request your copies today.

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JPMorgan Sees Strength in Both Gold and Crypto if Donald Trump Wins https://americanpoliticalreport.com/jpmorgan-sees-strength-in-both-gold-and-crypto-if-donald-trump-wins/ https://americanpoliticalreport.com/jpmorgan-sees-strength-in-both-gold-and-crypto-if-donald-trump-wins/#respond Sat, 02 Nov 2024 17:46:27 +0000 https://americanpoliticalreport.com/jpmorgan-sees-strength-in-both-gold-and-crypto-if-donald-trump-wins/ As the U.S. Presidential election approaches, with less than a week to go, investors are deliberating over which candidate may yield better outcomes for financial markets. Analysts at JPMorgan have indicated a favorable outlook for Bitcoin (BTC) and gold in the event of a Donald Trump victory.

According to JPMorgan analysts led by managing director Nikolaos Panigirtzoglou, “Retail investors appear to be embracing the ‘debasement trade’ in an even stronger manner by buying Bitcoin and gold ETFs.”

hE also noted that this retail enthusiasm extends to meme and AI tokens, which have seen outperforming market caps.

Recent data highlights that Bitcoin has surged above $73,000, prompting significant inflows into U.S.-listed spot BTC exchange-traded funds (ETFs). Over the past week alone, these ETFs increased their combined assets under management by more than $2.27 billion according to Farside Investors.

This marks the third-largest month of inflows into Bitcoin ETFs since their inception in January. The increase is attributed largely to retail interest seeking alternative assets as protection against currency debasement.

However, institutional investors have largely refrained from participating in this rally. The analysts remarked that institutional players paused their activity with Bitcoin futures recently based on cumulative open interest changes within CME contracts adjusted daily.

“Bitcoin futures have become rather overbought,” they warned. “Creating some vulnerability going forward.”

JPMorgan’s report also observed continued inflows into gold ETFs driven primarily by retail investors amidst a decline in institutional engagement with gold futures trading.

“Overall,” they concluded, “to the extent a Trump win inspires retail investors to not only buy risk assets but also further embrace the ‘debasement trade’, there could be additional upside for Bitcoin and gold prices.”

While Trump’s potential re-election is perceived as generally positive for cryptocurrencies like Bitcoin, its impact on gold may be more muted according to David Morrison from Trade Nation.

“Gold should continue to do its own thing,” he stated regarding current market conditions.

Morrison elaborated further: “It is currently in a bull market and this is unlikely to change under either candidate.”

He emphasized factors such as lower interest rates and declining dollar values that can bolster gold prices while noting little influence either candidate might exert over Federal Reserve policies—even despite Trump’s comments advocating rate cuts during his tenure.

With Fed chair Jerome Powell maintaining his position without any immediate threat of dismissal—despite Trump’s previous attempts at pressure—Morrison highlighted underlying bullish fundamentals supporting bullion investments amid rising geopolitical tensions alongside central bank purchasing activities primarily from nations like China rather than traditional Western central banks such as those represented by Federal Reserve or ECB actions.

He cautioned about absent retail demand during recent rallies but suggested that igniting such demand could lead toward substantial price gains moving forward.

Nicky Shiels from MKS PAMP provided insights suggesting fluctuating dynamics surrounding future valuations: “Gold’s trajectory into yearend is quite binary and contingent on both election outcomes.”

“The case for Gold at $2500 or $3000 can be made,” she said regarding possible price movements influenced heavily through various economic scenarios unfolding post-election day along with domestic data releases impacting Fed outlooks significantly moving ahead.”

For practical investor strategies concerning precious metals given uncertainty ahead; Shiels advised caution while remaining engaged: “Stay lightly long…but keep dry powder ready.”

Article generated from corporate media reports.

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Yes, Precious Metals Will Likely Skyrocket After the Election https://americanpoliticalreport.com/yes-precious-metals-will-likely-skyrocket-after-the-election/ https://americanpoliticalreport.com/yes-precious-metals-will-likely-skyrocket-after-the-election/#respond Fri, 01 Nov 2024 21:46:14 +0000 https://americanpoliticalreport.com/yes-precious-metals-will-likely-skyrocket-after-the-election/ Government will grow quickly under Democrats or slower under Republicans, but either way the U.S. government and its expenditures are expected to grow after the election.

Kamala Harris is a Big Gov stereotypical Democrat who will continuing the ballooning of budgets, deficits, and debt. Donald Trump was a populist president in his first term, and while he fought government regulations and bureaucracy, recovering from the last four years makes it unlikely that spending will be reduced in his second term.

In other words, we can expect the national debt to continue to grow unabated. It’s just a question of how fast.

With de-dollarization progressing worldwide, even a return to stronger fiscal policies under Trump is unlikely to assuage the rush by governments and central banks to own gold and silver. As for Harris, it is conceivable that the U.S. Dollar could collapse if she continues down the path of the current administration.

According to Mint:

Looking ahead, prices may remain elevated as the US presidential election outcome, regardless of who wins, is likely to further support the ongoing rally in gold prices, said domestic brokerage firm Elara Capital.

The brokerage noted that the 2024 US elections are shaping up to be one of the closest in modern times, and regardless of the outcome, the US fiscal outlook is expected to worsen. As per the IMF, the fiscal deficit for the US is expected to be higher than that of the emerging markets in the next five years.

Then, there’s the likelihood of chaos engulfing the United States in the days, weeks, or even months after the election. There has never been a more polarizing election in the nation’s history. Mass violence or even domestic terrorism are expected following a Trump victory. If Harris wins, the turmoil will be directly economic as companies brace for another four years of rampant inflation, low consumer sentiment, and an ongoing border invasion.

“It behooves Americans to protect their life’s savings with physical precious metals,” said Jonathan Rose, CEO of Genesis Gold Group. “Gold and silver are, in my humble opinion, the best way to do that and the time to get in is before the next big price spike following the election.”

Even the most conservative projections for gold and silver point to stability that belies the current economic turmoil. As Mint continued:

The growing fiscal pressure, particularly if either political party secures sweeping control, could result in a significantly higher deficit. Elara Capital notes that the Federal Reserve is likely to adopt a more hawkish stance under the new government—more so in the event of a Republican sweep—unless clear growth risks emerge.

In this context, gold prices are expected to benefit, serving as a hedge against both fiscal and geopolitical uncertainties. Elara Capital forecasts a 10% upside for gold over the next 12 months, highlighting contributing factors such as rising interest payments on US debt, escalating fiscal pressures, and the impact of increasing USD yields.

Genesis Gold IRA’s produced by this faith-driven company allow Americans to own physical precious metals by rolling over or transferring their retirement accounts. That means no tax impact and minimal cash out of pocket.

Americans who want to learn more about protecting their wealth or retirement with physical precious metals should request their free, definitive Wealth Protection Kit from Genesis Gold Group.

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Will Gold and Silver Prices Drop if Donald Trump Wins? https://americanpoliticalreport.com/will-gold-and-silver-prices-drop-if-donald-trump-wins/ https://americanpoliticalreport.com/will-gold-and-silver-prices-drop-if-donald-trump-wins/#respond Thu, 31 Oct 2024 17:22:18 +0000 https://americanpoliticalreport.com/will-gold-and-silver-prices-drop-if-donald-trump-wins/ It’s well-established among economists that if Kamala Harris wins the presidential election, gold and silver will likely shoot up in value. But what if Donald Trump wins? With his chances of victory increasing, should gold and silver owners sell now because values will drop during his second term?

“Considering everything we know, it’s ludicrous to think Trump will harm gold and silver prices,” said Jonathan Rose, CEO of Genesis Gold Group. “Gold rose 51% in his first term. I suspect they’ll rise even faster in a second term considering the state of geopolitics today.”

Precious metals have been consistently hitting record highs this year and the vast majority of analysts and bankers are predicting more of the same in 2025 regardless of who wins the election. Companies like BlackRock, Bank of America, and JPMorgan Chase are betting heavily on precious metals. Central banks have been buying up as much gold as they can for three years.

“The economic world is very different than it was in the past when Republican administrations hit precious metals prices,” Rose continued. “If anything, I would expect prices to rise faster following the election because of the turmoil that will hit the nation.”

Genesis Gold Group is a faith-driven company that specializes in rolling over or transferring retirement accounts into a Genesis Gold IRA backed by physical precious metals. They can do so without tax-penalties and often with no money out of pocket, allowing Americans to hedge their life’s savings against geopolitical turbulence.

With U.S. debt projected to hit $54 trillion by 2034, BRICS nations pushing for de-dollarization, and the possibility of war on multiple fronts, it behooves Americans to consider protecting their wealth or retirement with physical precious metals.

Genesis has put together a comprehensive Wealth Protection Kit and a Digital Dollar Defense Guide that give stellar insights about what to expect in both the near and distant futures. Request your copies today.

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