Physical Gold Investment in 2024 – Review of Trumponomics

Trumponomics, or the economic policy of the Donald Trump administration, is heralded by a pledge to impose tariffs on imports, and up to at least 60% on Chinese goods coming into the U.S. in the November 2024 presidential elections. 

The U.S. economy, which was already a major theme in the first presidential debate between Biden and Trump this election season, has consistently been a deal maker or breaker for candidates contesting U.S. presidential elections historically. 

In such a context, Trump’s policies on gold prices generally or the impact of Trump on silver IRA investments specifically are important indices to keep our eyes tied to especially if we are interested in purchasing physical gold and silver for long-term returns. 

November Elections and Gold Prices in the United States

Following the withdrawal of Joe Biden from the presidential race, Kamala Harris, who is the presumptive nominee of the Democratic Party in the 2024 presidential election, is not expected to differ significantly from the goals of the Biden administration. 

We don’t know the specifics of Harris’ platform yet, but we can assume that policies and trends from this period could continue if she wins the presidency, meaning there will not be a large effect on the price of gold post-election, which is unlikely if either candidate wins. 

In an email to the Investing News Network, Lobo Tiggre, CEO of IndependentSpeculator.com, said, “The outcome of the election will have ideological consequences, but it’ll make no difference to gold, silver, uranium or the commodities super-cycle”. 

Review of Gold Prices During the Trump Administration

In 2016, when Trump ran against Hillary Clinton, the gold price climbed by about US$50 in the weeks leading up to the November 8 election, peaking at just above US$1,300 per ounce on November 4. 

Following Trump’s win gold fell substantially, moving as low as US$1,128 in mid-December. Following that low point, the gold price began to rebound, and by the middle of January 2017 was once again above the US$1,200 level. 

The gold price rose substantially during Trump’s presidency, increasing from US$1,209 when he assumed office on January 20, 2017, to US$1,839 on his final day, which was January 19, 2021. 

Impact of Trump’s Policies on Gold Prices 

Trump’s actions helped shape the geopolitical landscape both in the US and abroad. During his tenure, trade wars with competitors were in focus. China was a key target for Trump, with more tariffs placed on Chinese goods. 

His primarily “America First” protectionist foreign policies and sanctions also impacted the trade relations between the U.S. and India and Iran, used to support citizens and the economy especially during the COVID-19 pandemic. 

A second Trump term would likely bring more of the same protectionist policies. Indeed, his 2024 campaign has similarities to his 2016 and 2020 campaigns. He emphasizes his “America First” policies if elected, which is likely to result in similar gains on gold prices. 

Trump has promised to implement a 60 percent tariff on all goods imported into the US from China with new restrictions imposed on more items, including steel, electric vehicle batteries and consumer goods. 

Goldman Sachs recently released a report suggesting investors should buy gold to hedge against inflation if Donald Trump and the Republicans sweep the 2024 election.

Why Purchase Physical Gold and Silver? 

1. Hedge Against Inflation

   Historically, and in many contemporary cultures, gold is widely regarded as a store of value. Its real-world uses in jewelry and electronics, provides it tangible value, as opposed to even investing in gold ETFs (exchange traded funds), making the case for purchasing physical gold. And unlike fiat currencies, there is a relatively limited supply of gold with Asian market consumption further lowering it.

2. Stability in Volatility

   The recent Russian (a major global gold reserve) invasion of Ukraine stood testament to how gold emerged as a safe bet in a highly volatile environment marred by prevailing inflation and geopolitical tensions. The precious metals market also has a historically inverse relationship with the stock market, which holds firm even during stock market crashes, leading investors to this safe haven asset class.

3. Top Performing Asset Class

   Gold and silver are two of the best performing asset classes since 2000, with gold’s annualized returns hitting nearly 8%. Because of their global supply being relatively finite, their purchasing power has historically remained stable during inflationary times. Asian markets take them off from circulation for decades at a time because of their consumption patterns in jewelry and trading, further enhancing their global value.

4. Protects Your Future

   By holding their value, contributed by a limited supply and ever-growing demand, purchasing physical gold and silver empowers you to protect your future. It is also bolstered by their many uses, including industrial applications like photovoltaics, jewelry creation, medicinal uses and minting investment and collectible products.

5. High Return Low Risk

   Purchasing physical gold and silver allows you a unique opportunity in diversifying your investment portfolio generally and precious metals portfolio specifically. Especially through availing silver IRA opportunities or gold IRAs. This enables you to allay financial risks by investing in a variety of asset classes as well as investment instruments. Not only does this practice cost you lower risks but ends up giving you higher returns on investment in the long run.

Want to learn more about investing in precious metals in 2024? Check out our blogs to get the current updates in the gold, silver, platinum and palladium markets. 

 

Disclaimer: All Market Updates are provided as a third-party analysis and do not necessarily reflect the explicit views of Wall Street Metals and should not be construed as financial advice.