Reasons To Buy Gold While Trump Is President
Despite the solid interest for gold and silver around the world, purchasing activity in the U.S. market for physical bullion has fallen since the election of Donald Trump. However, U.S retail sales are increasing. There are many reasons to buy gold and silver during this time. The bullion market is entering another stage.
President Obama’s two terms involved the financial crisis in 2008, numerous Quantitative Easing rounds, and no interest rate by the Federal Reserve. There were so many reasons to invest in silver and gold. Today, the reasons to invest in silver and are stronger than ever. However, those reasons may not be as evident to the average U.S retail buyers.
Many of those who were concerned about the direction of our country under President Obama are feeling more hopeful now.
Stocks in the U.S. are moving upward sharply. Low-interest rates are bringing housing prices up. And even the U.S. dollar is looking great when comparing it to other currencies throughout the world.
The reason for investing in physical silver and gold isn’t making the top headlines, but the story on gold is far from over. Instead, the markets appear to be waiting to see what path these events will take investors.
One direction is not bullish for the prices on precious metals. That route consists of a high U.S. dollar along with continuing to outperform risk assets and economic growth.
However, the other two routes move through opposite landscapes, but both lead to an increase in silver and gold prices. The first path includes inflating prices amid our quickly growing federal debt. The need to avoid declining the dollar’s purchasing power comes back in investor’s minds. The second path leads closer to bringing back safe-haven buying and geopolitical distrust.
There are many reasons to expect precious metal markets to take one of the bullish routes.